Taxpayers conducting business in the City of Los Angeles may be subject to the annual Los Angeles City Business Tax with an annual filing deadline of February 28th.
Companies may unknowingly be subject to the tax due to broad nexus standards that include regularly soliciting business in the City. For certain companies subject to the tax but have not filed returns, a voluntary disclosure program is available.
The rules surrounding the LACBT are unique and complex and careful consideration should be given as to whether a filing obligation exists, what gross receipts are subject to apportionment, and how such gross receipts should be apportioned to the City.
The 2018 Business Tax Renewal Form, based upon 2017 activity for calendar year taxpayers, must be filed on or before February 28, 2018.