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(a) The gross receipts tax rates applicable to Category 3 Business Activities are:
(1) For tax years 2025 and 2026:
0.413% for taxable gross receipts between $0 and $1,000,000
0.413% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.435% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.435% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.435% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.435% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.435% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.435% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.435% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.435% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.435% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.43% for taxable gross receipts between $0 and $1,000,000
0.43% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.452% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.452% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.465% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.465% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.465% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.465% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.465% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.465% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.465% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.442% for taxable gross receipts between $0 and $1,000,000
0.442% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.466% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.466% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.489% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.489% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.489% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.489% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.489% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.489% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.489% for taxable gross receipts over $1,000,000,000
(b) “Category 3 Business Activities” means one or more of the business activities described in NAICS codes 531 (Real Estate), 5612 (Facilities Support Services), 5617 (Services to Buildings and Dwellings), and 812930 (Parking Lots and Garages).
(c) The amount of taxable gross receipts from Category 3 Business Activities subject to the gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The gross receipts tax rates applicable to Category 4 Business Activities are:
(1) For tax years 2025 and 2026:
0.25% for taxable gross receipts between $0 and $1,000,000
0.25% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.3% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.504% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.84% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.84% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.176% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.176% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.344% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.344% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.512% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.26% for taxable gross receipts between $0 and $1,000,000
0.26% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.312% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.534% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.89% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.89% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.246% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.246% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.424% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.424% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.602% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.268% for taxable gross receipts between $0 and $1,000,000
0.268% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.321% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.557% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.929% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.929% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.301% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.301% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.486% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.486% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.672% for taxable gross receipts over $1,000,000,000
(b) “Category 4 Business Activities” means one or more of the business activities described in NAICS codes 11 (Agriculture, Forestry, Fishing and Hunting), 21 (Mining, Quarrying, and Oil and Gas Extraction), 22 (Utilities), 31 through 33 (Manufacturing), 48 and 49 (Transportation and Warehousing), 524 (Insurance Carriers and Related Activities), 541714 (Research and Development in Biotechnology (except Nanobiotechnology)), 5611 (Office Administrative Services), 5613 (Employment Services), 5614 (Business Support Services), 5615 (Travel Arrangement and Reservation Services), 5616 (Investigation and Security Services), 5619 (Other Support Services), and 92 (Public Administration).
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The gross receipts tax rates applicable to Category 5 Business Activities are:
(1) For tax years 2025 and 2026:
1% for taxable gross receipts between $0 and $1,000,000
1% for taxable gross receipts between $1,000,000.01 and $2,500,000
1.5% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.176% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.344% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.344% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.344% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.512% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.68% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.68% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.68% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
1.04% for taxable gross receipts between $0 and $1,000,000
1.04% for taxable gross receipts between $1,000,000.01 and $2,500,000
1.56% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.246% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.424% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.424% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.424% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.602% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.78% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.78% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.78% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
1.071% for taxable gross receipts between $0 and $1,000,000
1.071% for taxable gross receipts between $1,000,000.01 and $2,500,000
1.607% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.301% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.486% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.486% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.486% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.672% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.858% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.858% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.858% for taxable gross receipts over $1,000,000,000
(b) “Category 5 Business Activities” means one or more of the business activities described in NAICS codes 51 (Information), 5222 (Nondepository Credit Intermediation), 5223 (Activities Related to Credit Intermediation)), 533 (Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)), 54 (Professional, Scientific, and Technical Services) but not including 541714 (Research and Development in Biotechnology (except Nanobiotechnology)), 55 (Management of Companies and Enterprises), 562 (Waste Management and Remediation Services), 61 (Educational Services), 62 (Health Care and Social Assistance), and all business activities not otherwise exempt and not elsewhere subjected to a gross receipts tax rate by Sections 953.20 through 953.26 or an administrative office tax under Section 953.8.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The gross receipts tax rates applicable to Category 6 Business Activities are:
(1) For tax years 2025 and 2026:
1.5% for taxable gross receipts between $0 and $1,000,000
1.5% for taxable gross receipts between $1,000,000.01 and $2,500,000
3% for taxable gross receipts between $2,500,000.01 and $25,000,000
2.352% for taxable gross receipts between $25,000,000.01 and $50,000,000
3.024% for taxable gross receipts between $50,000,000.01 and $75,000,000
3.024% for taxable gross receipts between $75,000,000.01 and $100,000,000
3.36% for taxable gross receipts between $100,000,000.01 and $150,000,000
3.36% for taxable gross receipts between $150,000,000.01 and $250,000,000
3.36% for taxable gross receipts between $250,000,000.01 and $500,000,000
3.36% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
3.36% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
1.56% for taxable gross receipts between $0 and $1,000,000
1.56% for taxable gross receipts between $1,000,000.01 and $2,500,000
3.12% for taxable gross receipts between $2,500,000.01 and $25,000,000
2.492% for taxable gross receipts between $25,000,000.01 and $50,000,000
3.204% for taxable gross receipts between $50,000,000.01 and $75,000,000
3.204% for taxable gross receipts between $75,000,000.01 and $100,000,000
3.56% for taxable gross receipts between $100,000,000.01 and $150,000,000
3.56% for taxable gross receipts between $150,000,000.01 and $250,000,000
3.56% for taxable gross receipts between $250,000,000.01 and $500,000,000
3.56% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
3.56% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
1.607% for taxable gross receipts between $0 and $1,000,000
1.607% for taxable gross receipts between $1,000,000.01 and $2,500,000
3.214% for taxable gross receipts between $2,500,000.01 and $25,000,000
2.601% for taxable gross receipts between $25,000,000.01 and $50,000,000
3.344% for taxable gross receipts between $50,000,000.01 and $75,000,000
3.344% for taxable gross receipts between $75,000,000.01 and $100,000,000
3.716% for taxable gross receipts between $100,000,000.01 and $150,000,000
3.716% for taxable gross receipts between $150,000,000.01 and $250,000,000
3.716% for taxable gross receipts between $250,000,000.01 and $500,000,000
3.716% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
3.716% for taxable gross receipts over $1,000,000,000
(b) “Category 6 Business Activities” means one or more of the business activities described in NAICS codes 521 (Monetary Authorities-Central Bank), 5221 (Depository Credit Intermediation), 523 (Securities, Commodity Contracts, and Other Financial Investments and Related Activities), and 525 (Funds, Trusts, and other Financial Vehicles).
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The gross receipts tax rates applicable to Category 7 Business Activities are:
(1) For tax years 2025 and 2026:
0.5% for taxable gross receipts between $0 and $1,000,000
0.5% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.75% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.672% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.008% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.008% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.344% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.344% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.512% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.512% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.68% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.52% for taxable gross receipts between $0 and $1,000,000
0.52% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.78% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.712% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.068% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.068% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.424% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.424% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.602% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.602% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.78% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.536% for taxable gross receipts between $0 and $1,000,000
0.536% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.803% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.743% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.115% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.115% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.486% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.486% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.672% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.672% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.858% for taxable gross receipts over $1,000,000,000
(b) “Category 7 Business Activities” means the business activities described in NAICS code 23 (Construction).
(c) Except as otherwise provided in subsection (d), the amount of taxable gross receipts from Category 7 Business Activities subject to the gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
(d) The amount of taxable gross receipts determined under subsection (c) shall be reduced by any amounts that were included in a person or combined group’s gross receipts under subsection (c) and that the person or combined group paid to a subcontractor for work related to the real properties located with the City during the tax year. There shall be no deduction for any other costs, including without limitation costs for materials, fees, equipment, or other services. To claim such a deduction, a person must maintain an itemized schedule of payments to subcontractors.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
For tax years beginning on or after January 1, 2025, if a person, or a combined group as described in Section 956.3, derives gross receipts from more than one of Business Activity Categories 1 through 7, inclusive:
(a) If the person or combined group has $10,000 or less in gross receipts from any one of Business Activity Categories 1 through 7, inclusive, before allocating or apportioning gross receipts under Section 956, such person or combined group may combine those gross receipts for all purposes related to computing the gross receipts tax with the gross receipts from whichever of Business Activity Categories 1 through 7, inclusive, generated the most gross receipts for the person or combined group, before allocating or apportioning gross receipts under Section 956. If there is no Business Activity Category that generated the most gross receipts for the person or combined group because the person or combined group generated the same amount of gross receipts from one or more Business Activity Categories, then such person or combined group may combine the gross receipts in this subsection (a) for all purposes related to computing the gross receipts tax with the gross receipts from whichever Business Activity Category has the highest rates among the Business Activity Categories that generated the same amount of gross receipts.
(b) If the person or combined group continues to derive gross receipts from more than one of Business Activity Categories 1 through 7, inclusive, after applying subsection (a) of this Section 953.27, then such person or combined group shall separately compute the gross receipts tax for each Business Activity Category as provided in the Section applicable to that particular Business Activity Category as follows:
(2) The gross receipts tax liability for the person or combined group shall be the sum of the liabilities for each Business Activity Category.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a)
An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 12-A-1, only so long as those exemptions continue to exist under state or federal law.
(b) Gross receipts as defined in Section 952.3 shall not include receipts from business activities if, and only so long as and to the extent that, the City is prohibited from taxing such receipts under the Constitution or laws of the United States or under the Constitution or laws of the State of California.
(c) Rent Controlled Buildings Exclusion. A person subject to the tax may exclude from gross receipts in any tax year 50% of the total amount received from the rental of real property to tenants in occupancy at any location in the City, which is subject to limits on rent increases pursuant to the Residential Rent Stabilization and Arbitration Ordinance, Administrative Code, Chapter 37, Section 37.1 et seq.
(d) Exclusion of Certain Sales of Real Property. Gross receipts as defined in Section 952.3 shall not include receipts from any sales of real property with respect to which the Real Property Transfer Tax imposed by Article 12-C has been paid to the City.
(e) For only so long as and to the extent that the City is prohibited from imposing the tax under this Article 12-A-1, the following persons shall be exempt from the gross receipts tax:
(1) Banks and financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code Section 23182;
(2) Insurance companies exempt from local taxation under Article XIII, Section 28 of the California Constitution;
(3) Persons engaging in business as a for-hire motor carrier of property under Revenue and Taxation Code Section 7233;
(4) Persons engaging in intercity transportation as a household goods carrier under Public Utilities Code Section 5327;
(5) Charter-party carriers operating limousines that are neither domiciled nor maintain a business office within the City under Public Utilities Code Section 5371.4; and
(6) Any person upon whom the City is prohibited under the Constitution or laws of the State of California from imposing the gross receipts tax.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014; amended by Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021)
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