(Amended by Ord. No. 183,419, Eff. 3/20/15.)
For every person engaged in business as a Child Care Provider, Multimedia Business, Internet-based Application Service Provider, Internet-based Data Manipulation Businesses, Telephone Company, or Tugboat and/or Barge Operator, or engaged in Wholesale Sales, Tax Rate A, set forth in Section 21.33(a), shall be applicable.
(a) CHILD CARE PROVIDERS.
(a) CHILD CARE PROVIDERS.
1. A child care provider means providing non-medical care for children under 18 years of age in need of personal services, supervision or assistance essential for sustaining the activities of daily living or for the protection of the individual on less than a 24-hour basis.
2. As used in this section, the term "gross receipts" does not include receipts earned by:
(i) Community chests, funds, foundations and/or corporations: (A) that are organized and operated for religious, hospital or charitable purposes; (B) that are not conducted for profit; and (C) for which no part of the organization's net earnings inures to the benefit of any private shareholder or individual;
(ii) Non-profit secondary schools which are duly accredited by the University of California;
(iii) Non-profit elementary schools in which instruction is given to students in the pre-primary and primary grades in the several branches of studies required to be taught in the public schools of the State of California;
(iv) Rotary, Kiwanis and Lions Clubs;
(v) Non-profit automobile clubs, chambers of commerce, and other community service organizations; and
(vi) Trade associations such as the Merchants Plumbers Association, Merchants and Manufacturers Association, and labor organizations.
(b) MULTIMEDIA BUSINESSES.
1. A multimedia business means a business that produces films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or more media, which media include, without limitation, computer generated graphics and video, film, slides, video tapes, audio tapes and photographs or provides computer programming services on a contract or fee basis to the producer of these media. These services shall include computer software design and analysis, modification of custom software, digital imaging and other related programming services, the development of online and internet services and the design of web sites for clients.
2. A multimedia business shall not include: a business that utilizes multimedia to sell goods or further its business; motion picture, television or radio producers; radio or television broadcasters; or an adult entertainment business, as defined in Section 12.70 B. of this Code.
(c) INTERNET-BASED APPLICATION SERVICE PROVIDERS.
1. An internet-based application service provider (ASP) means a business that provides its customers access, exclusively through the internet, to electronic applications that are available exclusively on computer devices operated by or on behalf of the ASP. An "electronic application" is a computer program that provides the user with the ability to accomplish a specific task. An ASP shall not include a business that provides electronic applications, including but not limited to computer software, for customers to download through the internet. A business does not qualify as an ASP unless its internet-based electronic application provides information to the user directly without any substantial intermediation by any person except for technical support related to the use of the electronic application. An ASP shall not include a business that sells electronic applications through the internet, or any business that obtains its income from the use of its electronic applications by itself, on its behalf, or by any related entity as defined in section 21.00(a).
2. An ASP business shall not include: a business that utilizes an application to sell goods or further its business; motion picture, television or radio producers; telephone companies; radio or television broadcasters; or an adult entertainment business as defined in Section 12.70 B. of this Code.
3. The ASP business tax classification shall apply only for the 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 tax years unless the Council acts by ordinance to amend this Section and extend the length of time for which this classification shall apply.
(d) INTERNET-BASED DATA MANIPULATION.
1. An internet-based data manipulation business means a business that exclusively provides access to internet-based applications that allow a user to search, compile, and otherwise manipulate data, including but not limited to a business that operates or provides access to one or several "search engines". A "search engine" is an internet-based application that retrieves documents or files or data from the internet, a computer network, a database, or other data sources. "Data" includes visual, numerical, and written information. A business does not qualify as an Internet-based Data Manipulation Business unless its internet-based application provides information to the user directly without any substantial intermediation by any person except for technical support related solely to the use of the internet-based application.
2. An internet-based data manipulation business shall not include: a business that utilizes internet-based data manipulation to sell goods or further its business; motion picture, television or radio producers; telephone companies; radio or television broadcasters; or an adult entertainment business as defined in Section 12.70 B. of this Code.
3. The internet-based data manipulation business tax classification shall apply only for the 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 tax years unless the Council acts by ordinance to amend this Section and extend the length of time for which this classification shall apply.
(e) TELEPHONE COMPANIES.
1. A person engaged in the business of providing telephone services means a telephone company as the term is used in Article XIII, Section 19 of the Constitution of California.
2. For the purpose of this section, "gross receipts" shall have the same meaning as in Subsection (a) of Section 21.00, except that only those receipts derived from providing telephone services within the City of Los Angeles shall be included, and further excepting, that only receipts resulting from intrastate telephone services shall be included. "Gross receipts" shall also include receipts from the selling of advertising or advertising space in any directory, other printed matter or any other media only for business tax purposes commencing on or after January 1, 1984.
(f) TUGBOAT AND BARGE OPERATORS. Tugboat and barge operator means any person engaged in the business of operating a tugboat or barge.
(g) WHOLESALE SALES. A wholesale sale or sale at wholesale means a sale of goods, wares or merchandise for the purpose of resale in the regular course of business; provided that a blind person, within the meaning of this section, need not include the first $100,000.00 of gross receipts in the computation of the amount of tax due. This exemption shall not subject these persons to the provisions of Section 21.49, Professions and Occupations, of this article.
(1) A blind person, within the meaning of this section, means a person having not more than ten percent visual acuity in the better eye, with correction as certified by a licensed physician and surgeon who specialize in diseases of the eye or the Bureau of Vocational Rehabilitation of the Department of Education of the State of California. The exemption provided by this section shall not apply until a certificate as to the blindness shall be furnished to the Director of Finance.
(2) No tax under this article shall be required to be paid by any non-profit wholly owned retailer food cooperative by reason of its sales to its owner-members.
(3) For the purpose of this section, newspapers, magazines, periodicals, books and other printed matter is deemed to be included in the term "goods, wares or merchandise" and the term "gross receipts" means California receipts from the selling or furnishing of advertising or advertising space in printed matter in addition to California receipts from the sale of goods, wares or merchandise. The provisions of this subsection shall apply only to business tax periods commencing on or after January 1, 1984.