(Amended by Ord. No. 172,358, Eff. 1/31/99.)
(a) Minimum Business Tax. After payment of a minimum business tax of $25.00, the amount of business tax relief to a person engaged in business at a location in the business tax economic incentive area described in Subsection (j) but not excluded from such tax relief by Subsection (h) shall be an exemption from the next $500.00 in business tax liability.
(b) Time Period of Business Tax Relief. The business tax relief described in Subsection (a) of this section shall be for the tax period beginning on or after January 1, 1995 and ending on or before the termination of the City’s Empowerment Zone as established by the City Council by ordinance. The time period for business tax relief for census tracts that are added to the City’s business tax economic incentive area will commence on the effective date of the Ordinance adding the census tracts and cover the entire calendar year.
A person will only be entitled to the additional business tax relief provided for in Subsections (c), (d), (e), and (f) for up to a maximum period of five years.
(c) Additional Business Tax Relief for Existing Businesses Within the Business Tax Economic Incentive Area. Notwithstanding any other provision of this Code, for the tax years beginning on January 1, 1999 the annual business taxes paid starting in 1999 by any person for a business located within the business tax economic incentive area described in Subsection (j) on or after January 1, 1998, shall not exceed the business taxes paid by such person for the year ended December 31, 1998. Such additional relief shall be for a period of up to five years, as set forth in Subsection (b) above.
(d) Business Tax Relief for Existing Businesses Within the City Relocating into the Business Tax Economic Incentive Area. Notwithstanding any other provision of this Code, the annual business taxes paid during any taxable year by any person for a business (1) located within the City of Los Angeles but outside the business tax economic incentive area on or before December 31, 1998 and (2) which relocates its business activity within the business tax economic incentive area on or after January 1, 1999, shall not exceed the annual business taxes paid by such person during the tax year during which the business relocated into the business tax economic incentive area, subject to the relief provided in Subsection (a) above. Such additional relief shall be for a period of up to five years as set forth in Subsection (b) above.
(e) Business Tax Relief for Existing Businesses Outside the City Relocating Into the Business Tax Economic Incentive Area. Any person whose business was located outside the City of Los Angeles as of December 31, 1997 and which locates its business activity within the business tax economic incentive area on or after January 1, 1998, shall pay no business taxes other than the $25 minimum tax specified in Subsection (a) above for up to a five-year period as set forth in Subsection (b) above.
(f) Business Tax Relief for Newly Established Businesses Within the Business Tax Economic Incentive Area. Any person who starts a “newly established business” as defined in Section 21.00(c) of this Code within the business tax economic incentive area on or after January 1, 1998 shall pay no business taxes other than the $25 minimum business tax specified in Subsection (a) above for up to a five-year period as set forth in Subsection (b) above.
(g) Change of Ownership of Existing Businesses. New proprietors of pre-existing businesses located within the business tax economic incentive area shall not be eligible to receive the incentives set forth in Subsection (e) and (f) above.
(h) Excluded Businesses. The business tax relief described in Subsections (a) through (f) of this section is available to all business tax classifications located within the business tax economic incentive area except that no business tax exemption, waiver, decrease or freeze shall be available to any person whose primary activity at a location is the sale of alcoholic beverages for off-premises consumption or the sale of guns and ammunition, or which is an “adult entertainment business” as defined in the Los Angeles Municipal Code Section 12.70 B.
(i) Conditions to Receive Tax Exemption. The Director of Finance shall determine that one of the following conditions applies to each person seeking business tax relief under Subsections (e) and (f) above unless application of said conditions is waived by the Mayor’s Office.
(1) The business pays all of its work force at a rate at least equal to the living wage as identified in the City’s Living Wage Ordinance in Los Angeles Administrative Code Section 10.37.
(2) The business provides goods or services that are urgently needed in the business tax economic incentive area.
(3) The business can show proof of a significant investment in its workforce (For example: job training, childcare, retirement or investment programs; health or life insurance programs).
(4) A newly established business in the business tax economic incentive area hires at least 50% of its workforce locally from the business tax economic incentive area, or the buffer zone.
The Mayor’s Office shall provide annual reports to the Community and Economic Development Committee of the Council of waivers granted and the justification for those waivers.
(j) Description of Business Tax Economic Incentive Area. The business tax economic incentive area shall lie within the boundaries of the federal Empowerment Zone except that the business license tax economic incentive area shall extend beyond the boundaries of the Empowerment Zone to include both sides of a street in which there is business activity where only one side of that street is included in the Empowerment Zone.
(1) The business tax economic incentive area consists of the area included within the following United States Census Tract numbers, as extended by this subsection where applicable:
1041.020, 1047.010, 2045.000, 2051.000, 2060.000, 2062.000, 2063.000, 2073.000, 2260.000, 2270.000, 2281.000, 2282.000, 2286.000, 2287.000, 2288.000, 2289.000, 2291.000, 2371.000, 2372.000, 2383,000, 2392.000. 2393.000, 2397.000, 2400.000, 2402.000, 2405.000, 2408.000, 2409.000, 2420.000, 2421.000, 2422.000, 2423.000, 2426.000, 2427.000, 2430.000, 2431.000
(2) The map set forth below illustrates the location of the United States Census Tracts listed in Paragraph (1) of this subsection that comprise the business tax economic incentive area. The boundaries of said business tax economic incentive area are extended as set forth in this subsection where applicable.
LOCATION OF UNITED STATES CENSUS TRACTS THAT COMPRISE BUSINESS TAX ECONOMIC INCENTIVE AREA
(NOT ALL TRACTS PICTURED ARE LOCATED IN BUSINESS TAX ECONOMIC INCENTIVE AREA - SEE LAMC SEC. 21.26(j)(1))
Editor’s Note: The map referred to in this section is on file in the official City documents located in the Office of the City Clerk in Council File No. CF-97-0401-S1.
(3) The business tax economic incentive area is described in the table set forth below. The boundaries of said area are extended as set forth in this subsection where applicable.
BUSINESS TAX ECONOMIC INCENTIVE AREA FOR THE CITY OF LOS ANGELES
The table describes both part A and part B in a continuous loop. The loop starts southward by describing part A’s western half and going down to the Slauson and South Central Avenue intersection where part B begins. At the intersection the loop travels in a westwardly direction around part B. Eventually the loop travels back North to describe part A’s eastern half.
SECTION ONE
FIRST HALF OF PART A
INTERSECTION OF N. BROADWAY AND THE LOS ANGELES RIVER
BEGINNING POINT | DIRECTION | ENDING LIMIT |
N. Broadway | Southwest to | College Street |
College Street | East to | N. Alameda |
N. Alameda | South to | Temple Street |
Temple Street | West to | San Pedro |
San Pedro | South to | E. 1st |
E. 1st | West to | Los Angeles Street |
Los Angeles Street | South to | 2nd Street |
2nd Street | West to | S. Hill |
S. Hill | South to | 9th Street |
9th Street | East to | Maple Ave. |
Maple Ave. | South to | E. 21st Street |
E. 21st Street | East to | Central Ave. |
Central Ave. | South to | 42nd Street |
42nd Street | West to | Avalon |
Avalon | South to | E. 48th Street |
E. 48th Street | East to | McKinley Ave. |
McKinley Ave. | North to & back up | E. 48th Street |
E. 48th Street | East to | Central Ave. |
Central Ave. | South to | Slauson Ave. |
BEGINNING OF PART B OF SECTION ONE
INTERSECTION OF CENTRAL AVE. & SLAUSON AVE.
BEGINNING POINT | DIRECTION | ENDING LIMIT |
Slauson Ave. | West to | Van Ness Ave. |
Van Ness Ave. | South to | 62nd Street |
62nd Street | East to | S. Broadway Ave. |
S. Broadway | South to | Florence Ave. |
Florence Ave. | East to | S. Central Ave. |
S. Central Ave. | North to X-section | Slauson Ave. |
SECOND HALF OF PART A SECTION ONE
INTERSECTION OF S. CENTRAL & SLAUSON
BEGINNING POINT | DIRECTION | ENDING LIMIT |
Slauson Ave. | East to | S. Alameda |
S. Alameda | North to | E. 25th Street |
E. 25th Street | East to & following | Southern City Limits With Vernon |
Southern City Limits with Vernon | Follow to | Spence Street |
Spence Street | North to | E. 8th Street |
E. 8th Street | Northwest to | Soto Street |
Soto Street | North to | Santa Monica FWY. |
Santa Monica FWY. | West to | S. Boyle Ave. |
S. Boyle Ave. | North to | Golden State FWY. |
Golden State FWY. | North to | E. 4th Street |
E. 4th Street | West to | N. State Street |
N. State Street | North to | E. 1st Street |
E. 1st Street | West to | Los Angeles River |
Los Angeles River | North to | N. Broadway |
END OF SECTION ONE (PARTS A&B)
SECTION TWO
INTERSECTION OF S. CENTRAL AVE. & E. MANCHESTER
BEGINNING POINT | DIRECTION | ENDING LIMIT |
E. Manchester | West to | San Pedro Street |
San Pedro Street | North to | E. 79th Street |
E. 79th Street | West to | S. Vermont Ave. |
S. Vermont Ave. | South to | Manchester Ave. |
Manchester Ave. | East to | Figueroa |
Figueroa | South to | 104th Street |
104th Street | East to | Wall Street |
Wall Street | North to | 93rd Street |
93rd Street | East to | E. City Limits with Walnut Park |
E. City Limits with Walnut Park | North to | Intersection of Manchester & S. Central Avenues |
END OF SECTION TWO
SECTION THREE
INTERSECTION OF 104TH & SAN PEDRO STREET
BEGINNING POINT | DIRECTION | ENDING LIMIT |
San Pedro St. | South to | Imperial Hwy |
Imperial Hwy | East to | Wadsworth & E. 114th |
114th St. | East to | S. Central Ave |
S. Central Ave | South to | Imperial Hwy |
Imperial Hwy. | East to | E. City/County Limits at Mona Blvd. |
E. City/County Limits at Mona Blvd. | North to | 92nd Street |
92nd Street | West to | Maine St. |
Maine St. | North | E. 91st Street |
E. 91st Street | West to | Compton |
Compton | South to | E. 92nd Street |
E. 92nd Street | West to | Success Street |
Success Street | South to | E. 103rd Street |
E. 103rd Street | West to | S. Central Ave |
S. Central Ave | South to | E. 104th Street |
E. 104th Street | West to X-section | San Pedro |
END OF SECTION THREE
SECTION FOUR
INTERSECTION OF THE VAN NUYS BLVD. & THE FOOTHILL FWY.
BEGINNING POINT | DIRECTION | ENDING LIMIT |
Van Nuys Blvd. | Southwest to | San Fernando Rd. |
San Fernando Rd. | Southeast to | Pierce Street |
Pierce Street | Northeast to | Glenoaks Blvd. |
Glenoaks Blvd. | Southeast to | Osborne Street |
Osborne Street | North to | West side of the Hansen Dam |
West side of the Hansen Dam | Follow East to the | Rancho Tujunga Rancho Ex Mission DE San Fernando line |
Rancho Tujunga Rancho Ex Mission DE San Fernando line | North to | Foothill FWY. |
Foothill FWY. | West to X-section | Van Nuys Blvd. |
END OF SECTION FOUR
(k) Administration. The business tax economic incentive program shall be administered by the Director of Finance who shall notify all known persons engaged in business at a location in the business tax economic incentive area of the program.
(l) Business Tax Forms. It shall be the responsibility of each person engaged in business to compare its activity to the tax relief provided by this section and complete its business tax forms accordingly.
(m) Annual Report to the Mayor and Council by Director of the Office of Administrative and Research Services. The Director of the Office of Administrative and Research Services shall report annually on the measurable costs and benefits of the Business Tax Economic Incentive program. (Amended by Ord. No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)