CHAPTER II* LICENSES, PERMITS, BUSINESS REGULATIONS

CHAPTER II* LICENSES, PERMITS, BUSINESS REGULATIONS Article 1 Business Taxes 1.1 Telephone, Electricity and Gas Users Tax 1.2 1984 Olympic Games Ticket Distribution Tax 1.3 Commercial Tenant s Occupancy Tax 1.5 Use Tax [Suspended] 1.6 Uniform Sales and Use Tax 1.7 Transient Occupancy Tax 1.8 Cigarette Tax Ordinance 1.9 Real Property Transfer Tax 1.10 Dwelling Unit Construction Tax 1.12 Tax Penalty Amnesty 1.13 Residential Development Tax 1.14 Special Fire Safety and Paramedic Communications Equipment Tax 1.15 Parking Occupancy Tax 1.16 Special Police Communications / 911 System Tax 1.17 Enterprise Zone Hiring Tax Credit Voucher Application Fees 2 Definitions Authority and Procedure Revocation of Permits 6 Bicycles and Vehicles 8 Advertising 9 Repossession of Motor Vehicles Permit Requirements * Each reference in Sections 21.00 through 29.02, inclusive, to City Clerk is amended to read Director of Finance (Amended by Ord. No. 173,304 Eff. 6/30/00, Oper. 7/1/00). However, the City Clerk shall continue to perform the functions under Chapter II until such time as the Mayor and Council establish an official date of transfer of responsibilities. ARTICLE 1 BUSINESS TAXES (Art. 1, Ch. II, Added by Ord. No. 115,044, Eff. 1/1/60; Title Amended by Ord. No. 178,101, Eff. 1/9/07.) Section 21.00 Definitions. 21.01 Unlawful Business Not Authorized.

21.02 Constitutional Exemptions. 21.03 Imposition of Tax. 21.03.1 Automatic Tax Rate Reduction 21.04 Due Dates. 21.05 Delinquent Dates Interest Penalties. 21.06 Separate Registration Certificate Required for Each Location and Each Business Tax Classification. 21.06.1 Single Primary Tax Classification Election. 21.07 Refunds of Overpayments. 21.08 Business Tax Registration Certificate Form. 21.09 Business Tax Registration Certificates Posting and Keeping. 21.10 Business Tax Registration Certificates Charge for Duplication. 21.11 Business Tax Registration Certificate Transfer. 21.12 Business Tax Registration Certificates Suspension. 21.13 Newly Established Businesses Computation of Business Tax. 21.14 Written Statements When Required Computation of the Tax. 21.15 Director of Finance Duty to Enforce Powers Rules and Regulations. 21.16 Assessment Administrative Remedy. 21.17 Confidential Character of Information Obtained Disclosure Unlawful. 21.18 Delinquent Taxes Installment Payment. 21.19 Delinquent Taxes Suit for Recovery. 21.20 Delinquent Taxes Debt Not Discharged by Penal Conviction. 21.21 Delinquent Taxes Uncollectible. 21.22 Religious, Charity, Etc.; Procedure for Issuance of Tax Exempt Registration Certificates. 21.23 Effect of Repeals and Amendments. 21.25 Relief for Earthquake Interruption. 21.26 Empowerment Zone - City Business Tax Reductions, Limitations, and Exemptions. 21.27 Entertainment and Multimedia Business Tax Limitations. 21.29 Small Business Exemption. 21.30 New Business Exemption. 21.31 Settlement Bureau. 21.32 Rewards for Information. 21.33 [Tax Rates.] 21.41 Gross Receipts Fund Class 1. 21.42 Gross Receipts Fund Class 2. 21.43 Gross Receipts Fund Class 3. 21.44 Gross Receipts Fund Class 4. 21.45 Gross Receipts Fund Class 5. 21.46 Gross Receipts Fund Class 6. 21.47 Gross Receipts Fund Class 7. 21.48 Gross Receipts Fund Class 8. 21.49 Gross Receipts Fund Class 9. 21.50 Taxation of Medical Marijuana Collectives. 21.53 Amusement Park. 21.55 Auctioneer. 21.62 Billiards, Etc. 21.63 Amusement Machines. 21.64 Coin-operated Phonographs and Music Machines. 21.65.1 Coin-operated Scales and Service Machines. 21.70 Bowling Alley, Skee-ball Shuffleboard, Etc. 21.74 Circuses. 21.75 Side Shows, Carnivals, Concessions. 21.83 Dance Hall. 21.85 Public Dance. 21.94 Rides. 21.108 Money Lenders. 21.109 Motion Picture, Television and Radio Producers. 21.142 Stevedores. 21.167.1 Sales of Firearms and Ammunition. 21.168.1 Out of State Sales. 21.168.2 Sale for Convenience. 21.168.3 Certain Solicitors Deemed Employees. 21.168.4 Exemption Temporary Exhibitors at Tradeshows. 21.168.5 Certified Producers Deemed Employees. 21.169 Christmas Trees.

21.170 Christmas Tree Lot Clean-up Deposits. 21.171 Retailers of New Passenger Motor Vehicles. 21.187 Common Carrier Bus. 21.188 Contractors. 21.190.1 Exemption. 21.193 Sale of Real Property. 21.194 Transporting Persons for Hire. 21.195 Trucking Hauling 21.196 Miscellaneous Trucking. 21.199 Sales Tax. SEC. 21.00. DEFINITIONS. The following words and phrases whenever used in this article and in Article 1.5 shall be construed as defined in this section, unless from the context a different meaning is intended or unless a different meaning is specifically defined and more particularly directed to the use of such words or phrases: (a) "GROSS RECEIPTS." (Amended by Ord. No. 176,326, Eff. 1/16/05, Oper. 1/1/05.) Except as otherwise specifically provided, the term "gross receipts" as used in this article shall mean the gross receipts of the tax year and shall be calculated on either a cash or accrual basis in accordance with Internal Revenue Service guidelines. Gross Receipts is defined as follows: The total amount charged or received for all sales and commissions for the performance of any act, service or employment of whatever nature it may be, whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit allowed, including all receipts, cash, credits and property of any kind or nature, any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. Gross receipts shall also include the amount of any federal manufacturers or importers excise tax included in the price of the property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge. The term "GROSS RECEIPTS" as used in this article shall not include the following: (1) Cash discounts allowed or taken on sales; (2) Any part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale; (3) The amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge, or any California state, City, or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; (4) The amount derived from a business activity sold or otherwise transferred to another person during the preceding calendar year; (5) Any amount received from or charged to any person which is a related entity to the taxpayer. A person is a related entity to a taxpayer if 80% or more of the ownership interests in both value and voting power of said person and the taxpayer are held, directly or indirectly, by the same person or persons. Notwithstanding the foregoing, any amount received from or charged to any person which is a related entity to a taxpayer shall be included in "gross receipts" when said amount is compensation for activities, including but not limited to, selling, renting and service performed by the taxpayer for any person which is not a related entity to the taxpayer; and (6) Any uncollectible amount apportioned to the City of Los Angeles which has been written off as a "bad debt" in compliance with Internal Revenue Service guidelines. Any portion of bad debt subsequently recovered by a taxpayer shall constitute taxable "gross receipts" in the year that it is recovered. The provisions of this exclusion shall apply to any person paying a tax under the provisions of this article. The term "Tax Year" as used in this article shall mean the calender year unless there is a specific election to use the business's fiscal year. After an election to use the fiscal year is made, a business may not change its tax measure year from that fiscal year, unless it changes its fiscal year or receives a waiver from the Director of Finance. The measure of tax for a business electing to use its fiscal year shall be attributable to the 12 month period ending on the last day of its fiscal year, and shall be for the fiscal year ending in the calendar year that would otherwise be the measuring year. (b) BUSINESS TAX shall mean the privilege tax imposed upon persons engaged in the businesses or occupations described in Sections 21.50 to 21.198, inclusive, of this article for the privilege of engaging in such businesses or occupations within the City of Los Angeles. SALES TAX shall mean that tax imposed by Section 21.199 of Article 1, Chapter 2 of this Code. USE TAX shall mean that tax imposed by Article 1.5 of Chapter 2 of this Code.

(c) NEWLY ESTABLISHED BUSINESS shall mean a business which was not engaged in during the immediately preceding business tax period specified for that kind of business. A business to which a valid existing registration certificate is transferred pursuant to the provisions of Sec. 21.11 is not a newly established business, and shall be taxed as if the ownership had not changed. The following shall not be considered newly established businesses: (1) The business engaged in from a new location whether within or outside the City when the business conducted and taxed at the location used during the preceding business tax period was discontinued at the same time or prior to commencement of business at the new location; (2) The business engaged in during the current business tax period is the same kind as that engaged in during the immediately preceding period, but not at the close thereof; (3) The business to be engaged in during the current tax period though not in fact the same kind of business, is taxed under the same section as the business engaged in during, but not necessarily throughout the immediate preceding tax period. Provided that the Director of Finance may, on written application by the taxpayer, and after considering all circumstances, find that a business described in this paragraph is in fact new and not a continuation of a business engaged in during the immediately preceding business tax period. (d) PERSON shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, company, joint stock company, business trust, domestic or foreign corporation, association, syndicate, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise. (Amended by Ord. No. 174, 272, Eff. 11/26/01.) (e) REGISTRATION CERTIFICATE shall mean Business Tax Registration Certificate. (f) STREET shall include all streets, avenues, highways, alleys, courts, lanes, places, squares, curbing, sidewalks or other public ways in this City which have been or may hereafter be dedicated as such and open to public use. (g) SALE, SELL shall be deemed to include and refer to: The making of any transfer of title, in any manner or by any means whatsoever, to tangible personal property for a price, and the serving, supplying or furnishing, for a price, of any tangible personal property fabricated or made at the special order of consumers who do or who do not furnish directly or indirectly the specifications therefor. A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law. (h) BUSINESS shall mean any activity, enterprise, profession, trade or undertaking of any nature conducted or engaged in, or ordinarily conducted or engaged in, with the object of gain, benefit or advantage, whether direct or indirect, to the taxpayer or to another or others. The term shall include operations of subsidiary or independent entities conducted for the benefit of others and at no profit to themselves, nonprofit businesses and trade associations. A person shall not be deemed to be engaged in business solely by reason of receipt of dividend or interest income from passive investments. (Amended by Ord. No. 174, 272, Eff. 11/26/01.) (i) ENGAGED IN BUSINESS shall mean the conducting, operating, managing or carrying on of a business, whether done as owner, or by means of an officer, agent, manager, or employee. A person shall be deemed engaged in business within the City if: (1) such person or his employee maintains a fixed place of business within the City for the benefit or partial benefit of such person, or (2) such person or his employee owns or leases real property within the City for business purposes, or (3) such person or his employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business, or (4) such person or his employee regularly conducts solicitation of business within the City, or (5) such person or his employee performs work or renders services in the City on a regular and continuous basis involving not less than seven working days per year for all such employees, or (6) such person or his employee utilizes the streets within the City in connection with the operation of motor vehicles for business purposes. The foregoing specified activities shall not be a limitation on the meaning of engaged in business. (Amended by Ord. No. 174, 272, Eff. 11/26/01.) (j) (Added by Ord. No. 172,783, Eff. 9/30/99.) INDEPENDENT CONTRACTOR shall mean: any entity, other than an individual, that performs services for a principal; and any individual who performs services for a principal for a specified recompense for a specified result, under control of the principal as to the result of the work only and not as to the means by which such result is accomplished. An independent contractor receives income that should be reported to the Internal Revenue Service by the principal on IRS Form 1099, should report the income to the Internal Revenue Service on IRS Form 1040, Schedule C and may deduct the cost of the use of a home for business purposes on said Schedule C. Factors which indicate status as an independent contractor are if an individual:

(1) is not required to follow instructions on how to perform services; (2) possesses the skills necessary to perform the task and does not need additional training; (3) performs services that are not essential to the principal s business or are not incorporated into the product or services sold by the principal; (4) should be able to subcontract all or a portion of the project; (5) can hire and supervise his or her own employees, but should not supervise, or be supervised by, the principal s employees; (6) generally works on one project and moves on, acquiring additional projects when and if he or she is available; (7) establishes his or her hours of work, working as necessary to accomplish the end result; (8) usually has the right to work simultaneously for the principal and others, as long as the end result is achieved; (9) should be able to choose where to perform some, if not all, of the services; (10) can control the manner and method of performing the services; (11) is responsible only for the end result, and is not required to submit interim reports; (12) generally is paid a flat rate for the completion of the project; (13) is expected to assume the burden of business expenses; (14) should have the tools and equipment necessary to perform the services independently; (15) makes as an investment in tools, business equipment, publications and supplies appropriate for his or her business; (16) accepts both the benefits and risks of a business transaction, in that he or she has the opportunity to profit from the project price and risks a loss if the end result is unacceptable or costs exceed the project price; (17) can and does work for multiple firms simultaneously; (18) offers his or her services to the general public; (19) can be terminated only according to the terms of an agreement, and could recover damages for breach of contract if termination is outside the scope of the agreement; and (20) has as an obligation to complete the work under contract. (k) (Added by Ord. No. 172,783, Eff. 9/30/99.) EMPLOYEE shall mean any individual who performs services for a principal in a capacity other than as an independent contractor. An employee receives income that should be reported to the Internal Revenue Service by the principal on IRS Form W2, should not report the income to the Internal Revenue Service on IRS Form 1040, Schedule C and may not deduct the cost of the use of a home for business purposes on said Schedule C. Factors which indicate status as an employee are if an individual: (1) can receive instructions concerning the means and methods of achieving a result; (2) may receive training from the principal; (3) provides the services essential to bringing the principal s product or services to market; (4) cannot delegate his or her responsibilities; (5) deals with subcontractors and employees only within the framework of the principal s directions or policies; (6) has a continuing relationship with the principal; (7) must work the hours that are dictated by the principal; (8) usually must make a time commitment to the principal;

(9) must perform services at the location chosen by the principal; (10) is subject to the principal s control over the sequence of tasks; (11) can be required to submit interim reports; (12) is usually paid on an hourly or salary basis; (13) is usually reimbursed for business expenses; (14) is provided needed tools by the principal; (15) is not required to invest in the principal s business; (16) is paid for his or her time and bears no risk of wage loss if the principal s product is unprofitable; (17) can be precluded from some alternative jobs; (18) does not perform services directly for the public, but only for the principal; (19) can be discharged at will; and (20) normally may terminate his or her relationship with the principal without incurring liability. (l) (Added by Ord. No. 172,820, Eff. 10/28/99, Oper. 1/1/01.) INDUSTRY CODE shall mean the industrial classification number assigned to an industry in the North American Industry Classification System (NAICS) by the Executive Office of the President, Office of Management and Budget. SEC. 21.01. UNLAWFUL BUSINESS NOT AUTHORIZED. No registration certificate or permit issued under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code, or the payment of any tax required under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. SEC. 21.02. CONSTITUTIONAL EXEMPTIONS. Nothing in Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as requiring the payment of any tax for engaging in a business or the doing of an act when such payment would constitute an unlawful burden upon or an unlawful interference with interstate or foreign commerce, or which payment would be in violation of the Constitution of the United States or the Constitution of the State of California. SEC. 21.03. IMPOSITION OF TAX. (a) Subject to the provisions of this Article, a business tax registration certificate must be obtained and a business tax must be paid by every person engaged in any of the businesses or occupations specified in this Article; and a business tax is hereby imposed in the amount prescribed in the applicable section. No person shall engage in any business or occupation subject to tax under the provisions of this Article without obtaining a registration certificate and paying the tax required. (Amended by Ord. No. 181,696, Eff. 6/18/11.) (b) The business tax registration certificate required to be obtained and the tax required to be paid are hereby declared to be required pursuant to the taxing power of the City of Los Angeles solely for the purpose of obtaining revenue. Compliance with such requirements shall not be construed to be a condition precedent to engaging in any business or occupation within the City of Los Angeles where the imposition of such a condition precedent would be contrary to law. (c) Commencing on January 1, 1981 the Director of Finance is directed not to enforce the Business Tax Ordinance against financial corporations for the tax years beginning January 1, 1981 until directed to do otherwise by the City Council by resolution. (Added by Ord. No. 154,914, Eff. 4/2/81.) SEC. 21.03.1. AUTOMATIC TAX RATE REDUCTION. (Title and Section Amended by Ord No. 176,324, Eff. 1/16/05, Oper. 1/1/06.) Commencing with the tax year 2006, the tax rates contained in this Article which are based upon gross receipts shall be reduced by up to 4% per year. The maximum total rate reduction shall be 15% from the rates imposed as of December 31, 2005. The yearly tax rate reduction shall be calculated by the Director of Finance on a percentage basis rounded to the nearest one-tenth percent (1/10%) from the net increase in business tax revenue above a baseline. Net business tax

revenue shall be the amount credited as Business Tax in the Statement of Receipts published in the annual Controller's Preliminary Financial Report. The baseline shall be the revenue forecast for business tax receipts prepared in conjunction with the 2004-2005 City budget set forth as follows: Fiscal Year Revenue Forecast 2004-2005 $384,815,000 2005-2006 $400,977,000 2006-2007 $417,016,000 2007-2008 $433,697,000 2008-2009 $451,045,000 2009-2010 $469,087,000 The baseline revenue forecast for each year beyond the 2009-2010 shall be calculated based upon a 4% per annum increase from the previous year. There shall be no tax reduction in any year in which the net revenue increase is less than one percent (1%). Any percentage increase below one percent (1%) shall be carried over and added to the next year percentage increase for purposes of calculating the rate reduction for that year. The Director of Finance shall issue a detailed annual report on the net business tax revenue received each fiscal year and the basis for all calculations and carryovers and shall publish or otherwise publicize the revised rates for each year. SEC. 21.04. DUE DATES. All business taxes shall be paid to the Director of Finance in lawful money of the United States and taxes required hereunder shall be paid in advance except where otherwise specifically provided, and shall be due and payable at the following times: (a) (b) (c) (d) Annual business taxes on the first day of January of each year; Quarterly business taxes on the first days of January, April, July and October of each year; Monthly business taxes on the first day of each month; Daily business taxes on each day; (e) When a business discontinues, dissolves, or otherwise terminates before the expiration of a business tax period, any taxes accrued and owing to the City under the provisions of this article or Article 1.5, including any business taxes that would not otherwise be payable under the close of the business tax period during which termination occurs, or until time for paying the tax for the next succeeding business tax period, shall be due on the date of termination. (f) When a person first becomes subject to business tax by reason of an amendment of this article, or because of such an amendment, becomes subject to business tax under a section not previously applicable to such person or on a basis not previously applicable to such person, any new or additional tax required to be paid by reason of this article, as so amended shall be due and payable upon the effective date of the amending ordinance unless an operative date different from the effective date of the amendment is specified therein. (Added by Ord. No. 128,639, Eff. 11/30/64.) SEC. 21.05. DELINQUENT DATES INTEREST PENALTIES. (Amended by Ord. No. 179,984, Eff. 8/3/08.) (a) Delinquent Dates: Unless otherwise specifically provided for in other provisions of this article, all business taxes required to be paid shall be deemed delinquent if not paid on or before or within the time prescribed in this article: 1. Annual Business Taxes on or before the close of business on the last day of the month following the month in which the tax is due. 2. Quarterly Business Taxes on or before the close of business on the last day of the month in which the tax is due. 3. Monthly Business Taxes on or before the close of business on the last day of the month for which the tax is due. 4. Daily Business Taxes on or before the close of business on each day for which the tax is due. 5. Business Taxes Unpaid When a Business Has Been Discontinued, Dissolved or Otherwise Terminated within 45 days of the termination of the business. 6. Deficiency Determinations within 30 days from the date of notification.

(b) Penalties: 1. Original Delinquency. Any person who fails to pay any tax required to be paid by this article, except deficiency determinations made by the Director of Finance under Subsection (i) of Section 21.15 of this article, within the time required shall pay a penalty of 5% of the amount of the tax in addition to the amount of the tax. 2. Continued Delinquency. Any person who fails to pay any delinquent tax, except deficiency determinations made by the Director of Finance under Subsection (i) of Section 21.15 of this article, on or before the last day of: (i) The first month in which the tax first became delinquent, shall pay a second penalty of 5% of the amount of the tax in addition to the amount of the tax and the 5% penalty first imposed; (ii) The second month in which the tax first became delinquent, shall pay a third penalty of 5% of the amount of the tax in addition to the amount of the tax and the 10% in accumulated penalties previously imposed; (iii) The third month in which the tax first became delinquent, shall pay a fourth penalty of 5% of the amount of the tax in addition to the amount of the tax and the 15% in accumulated penalties previously imposed. (iv) The fourth month in which the tax first became delinquent, shall pay a fifth penalty of 20% of the amount of the tax in addition to the amount of the tax and the 20% in accumulated penalties previously imposed. 3. Deficiency Determinations. Any person who fails to pay a deficiency determination within 30 days after the Director of Finance has notified him or her of the amount of the deficiency, shall pay a penalty of 20% of the amount of the deficiency determination in addition to the amount of the deficiency determination. Notice of a deficiency determination shall be given in writing in the manner provided for the service of notices of assessment in Subsection (b) of Section 21.16. 4. Overpayment. For the purpose of allowing overpayments as credit against underpayments of the above-mentioned taxes, whenever the overpayment has been received by the City within the three years prior to an underpayment, or during any year for which the taxpayer, at the request of the Director of Finance, has executed a waiver of the defense of the statute of limitations with regard to any claim the City may have for business tax, the Director of Finance, when making determinations of the amount of taxes due the City, shall make an allowance of credit for any overpayment. Overpayments shall be applied to underpayments in the oldest period(s) before applying to a later period(s). Whenever an overpayment has been made prior to an underpayment, no penalty or interest shall apply upon the amount of the underpayment satisfied by the prior overpayment. (c) Negligence. If the Director of Finance determines that the nonpayment of any tax due under this article or Article 1.6 is due to negligence or willful disregard of the provisions of this article or Article 1.6, a penalty of 10% of the amount of the tax shall be added to the tax due in addition to the penalties stated in Subdivisions 1. and 2. of Subsection (b) of this section. If the Director of Finance determines that any part of the deficiency of a deficiency determination is due to negligence or willful disregard of the provisions of this article or Article 1.6, a penalty of 10% of the amount of the deficiency determination shall be added in addition to the penalties stated in Subdivision 3. of Subsection (b) of this section. (d) Fraud. If the Director of Finance determines that the nonpayment of any tax due under this article or Article 1.6 is due to fraud, a penalty of 25% of the amount of the tax shall be added, in addition to the penalties stated in Subdivisions 1. and 2. of Subsection (b) of this section. If the Director of Finance determines that any part of the deficiency determination is due to fraud, a penalty of 25% of the amount of the deficiency determination shall be added, in addition to the penalties stated in Subdivision 3. of Subsection (b) of this section. (e) Interest. In addition to the penalties imposed, any person who fails to pay any tax required to be paid by this article or Articles 1.1, 1.3, 1.7, or 1.15 of this chapter shall pay interest on the amount of the tax, exclusive of any penalty, from the date on which the tax first became delinquent until the date it is paid, during each calendar year at the rate per month, or fraction of the month, determined by dividing by 12 the sum of the average Federal shortterm rate during the months of July, August and September of the prior calendar year plus three percentage points. Unless the monthly rate is evenly divisible by one-tenth of a percentage point, it shall be rounded up to the next highest one-tenth of a percentage point. Interest shall run during any period of time for which the Director of Finance has granted an extension of time. Interest required by any of the provisions of this section shall not be subject to waiver or compromise other than in accordance with the provisions of Subsections (f) and (g) of Section 21.15 of this article, or as the Council may direct. (f) Penalties and Interest Merge With Tax For Collection Purposes. For collection purposes only, every penalty imposed and the interest that is accrued under the provisions of this section shall become a part of the tax required to be paid. SEC. 21.06. SEPARATE REGISTRATION CERTIFICATE REQUIRED FOR EACH LOCATION AND EACH BUSINESS TAX CLASSIFICATION. (a) Unless otherwise provided in this article, every person who engages in any business within this City which is subject to tax under the provisions of this article shall be deemed to be engaged in a separate business at each branch establishment or location at which he engages in business and must obtain a separate registration certificate and pay a separate business tax for each classification of business engaged in at each location or branch establishment in the City at which or from which the business activities classified and subject to tax under the provisions of this article are carried on. Each registration certificate so obtained and the payment of the applicable tax for each such classification of business at each such location shall authorize the person named upon the certificate to engage only in the business specified at the location for which the certificate has been issued; provided that where business is engaged in from one or more locations outside the

City, only one registration certificate for each classification of business need be issued to the person for engaging in that business in the City from all such outside locations; provided further, that warehouses and distributing plants located in the City used in connection with and incidental to a business for which a registration certificate has been issued to an address located within the City shall not be deemed to be branch establishments or separate locations. (Amended by Ord. No. 131,873, Eff. 3/31/66.) (b) Whenever the business tax for a business imposed under the provisions of this article is measured by the number of vehicles, devices, machines, or other pieces of equipment used, or whenever the business tax is measured by the gross receipts from the operation of coin-operated machines, the Director of Finance shall issue only one registration certificate; provided that he shall issue for each tax period for which the business tax has been paid, one identifying sticker or symbol for each vehicle, device, machine or other piece of equipment included in the measure of the tax or for each coin-operated machine used in a business where the tax is measured by the gross receipts from such coin-operated machines. SEC. 21.06.1. SINGLE PRIMARY TAX CLASSIFICATION ELECTION. (Added by Ord. No. 175,385, Eff. 9/14/03, Oper. 1/1/04.) (a) When a person engages in a business that consists of two or more activities taxable on the basis of annual gross receipts and one of the activities generates at least 80% of the person s annual taxable gross receipts, that person may elect on a yearly basis to have all of its taxable annual gross receipts reported and taxed at the rate applicable to the activity constituting at least 80% of annual taxable receipts. Any business activities taxed other than on the basis of annual gross receipts shall not be combined with business activities taxed on the basis of annual gross receipts, and the receipts generated by the activities taxed other than on the basis of annual gross receipts shall continue to be taxed under the existing tax sections and shall be excluded in computing the 80% threshold. The provisions of this section shall only apply to gross receipts generated by business activities conducted at or originating from the same location or as otherwise provided for under Section 21.06. All apportionments shall be made prior to electing the single primary tax classification using the appropriate apportionment formulas for each classification. (b) Any tax deficiency or delinquency resulting from an election and payment made pursuant to Subsection (a) in which the primary tax category does not meet the 80% threshold shall accrue interest and penalties as set forth in Section 21.05 of this Article. SEC. 21.07. REFUNDS OF OVERPAYMENTS. (Amended by Ord. No. 181,051, Eff. 1/31/10.) No refund of an overpayment of taxes imposed by Article 1 and 1.5 of Chapter 2 of this Code shall be made except under the following procedure (a) No claim for refund shall be allowed in whole or in part unless filed by the person claiming the overpayment, or his authorized agent on his behalf, with the City Clerk within a period of one year from the date of the claimed overpayment, and all such claims for refund of overpayment must be filed with the City Clerk on forms furnished by the City and in the manner prescribed by the City. (b) Nothing in this section shall be deemed to bring into being or validate any claim for refund arising from a cause heretofore existent if such claim, whether filed or not, was or would have been invalid because of the then existing statutory term, and nothing in this section shall be deemed to validate, revive, restore or continue any claim for refund heretofore filed and denied. (c) Insofar as the provisions of this section are in conflict with the provisions of Sections 22.12, 22.13 of this Code, the language of this section shall be construed to control and supersede the language of said sections as to any such conflict. (d) The City shall pay interest on the amount of each allowed claim for refund of overpayment of tax, from the date of filing the claim for refund or, in the case of a payment under protest or pursuant to a billing from the Office of Finance, from the date of overpayment, until the date the overpayment is paid, during each calendar year at the rate per month determined by dividing by 12 the sum of the average Federal short-term rate during the months of July, August and September of the prior calendar year. Unless the monthly rate is evenly divisible by one-tenth of a percentage point, it shall be rounded up to the next highest one-tenth of a percentage point. SEC. 21.08. BUSINESS TAX REGISTRATION CERTIFICATE FORM. (a) Each business tax registration certificate shall be prepared and issued by the Director of Finance and shall state upon the face thereof the following: 1. The name of the person to whom issued. 2. The classification of business engaged in and the section of this article in which the business taxed is described. 3. The address of the location from which the business is conducted, and, where it is different, the mailing address of the business taxed; or where no fixed place of business is maintained, the mailing address of the person to whom the registration certificate has been issued. The mailing address so

appearing shall be the address to which all notices required or authorized in this article shall be sent unless the registrant shall request in writing that another address be used for such purpose. 4. The period for which the certificate has been issued. (b) Each business tax registration certificate shall state on the back thereof the following: This business tax registration certificate signifies that the person named on the face hereof has fulfilled the requirements of Article 1 of Chapter II of the Los Angeles Municipal Code by registering with the Director of Finance for the purpose of paying business tax for the classification of business for which this certificate is issued. This certificate does not authorize the person to conduct any unlawful business or to conduct any lawful business in an illegal manner or to conduct within the City of Los Angeles the business for which this certificate has been issued without strictly complying with all the provisions of the ordinances of said City, including but not limited to those requiring a permit from any board, commission, department or office of the City. THIS BUSINESS TAX REGISTRATION CERTIFICATE DOES NOT CONSTITUTE A PERMIT. Any failure to comply with the requirements of Article 1 or Article 1.11 of Chapter II of the Los Angeles Municipal Code shall constitute grounds for suspension of this certificate. (Amended by Ord. No. 160,389, Eff. 10/21/85.) SEC. 21.09. BUSINESS TAX REGISTRATION CERTIFICATES POSTING AND KEEPING. (a) Every person engaged in a business subject to tax under the provisions of this article and which business is conducted at or from a fixed place of business shall keep the registration certificate issued therefor posted in a conspicuous place upon the premises at or from which the business is conducted. (b) Every person engaged in a business subject to tax under the provisions of this article but not operating from a fixed place of business shall keep the registration certificate issued therefor upon his person at all times while engaging in the business for which it is issued. (c) Whenever identifying stickers or symbols have been issued for each vehicle, device, machine, or other piece of equipment included in the measure of a business tax, or for each coin-operated machine the gross receipts from which are the measure of the tax, the person to whom such stickers or symbols have been issued shall keep firmly affixed upon each vehicle, device, machine, piece of equipment or coin-operated machine the identifying sticker or symbol which has been issued therefor. Such sticker or symbol shall not be removed from any vehicle, device, machine, piece of equipment or coin-operated machine kept in use, during the period for which the sticker or symbol is issued. (d) It shall be a misdemeanor for any person to fail to affix as required herein any identifying sticker or symbol to the vehicle, device, machine, piece of equipment, or coin-operated machine for which it has been issued, or to give away, sell or transfer such identifying sticker or symbol to another person, or to permit its use by another person. SEC. 21.10. BUSINESS TAX REGISTRATION CERTIFICATES CHARGE FOR DUPLICATION. (Amended by Ord. No. 179,984, Eff. 8/3/08.) Duplicate registration certificates may be issued by the Director of Finance to replace any previously issued certificate, which has been lost or destroyed, upon the filing of an affidavit by the registrant or an authorized representative attesting to that fact and upon paying to the Director of Finance a fee of $5.00. SEC. 21.11. BUSINESS TAX REGISTRATION CERTIFICATE TRANSFER. No registration certificate shall be transferable except where the business taxed is transferred, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership of the business after the transfer is substantially similar to the real or ultimate ownership existing before the transfer. For the purposes of this section, stockholders, bond-holders, partners, or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corporation or other entity. SEC. 21.12. BUSINESS TAX REGISTRATION CERTIFICATES SUSPENSION. (Title and Section Amended by Ord. No. 160,389, Eff. 10/21/85.) (a) Whenever any person fails to comply with any provision of this article pertaining to business tax or Article 1.11 of this chapter pertaining to payroll expense tax, or any rule or regulation adopted pursuant thereto, the Director of Finance, upon hearing, after giving such person ten days notice in writing specifying the time and place of hearing and requiring him to show cause why his registration certificate or certificates should not be suspended, may suspend any one or more of the registration certificates held by such person. The notice shall be served in the same manner as notices of assessment are served under Section 21.16 of this article. (b) Any person who engages in any business after the registration certificate issued therefor has been suspended, and before such suspended certificate has been reinstated, shall be guilty of a misdemeanor.

SEC. 21.13. NEWLY ESTABLISHED BUSINESSES COMPUTATION OF BUSINESS TAX. (Amended by Ord. No. 177,246, Eff. 2/18/06, Oper. 1/1/06.) (a) Except in cases where this article prescribes a different method to compute and pay the business tax for a newly established business, the business tax shall be obtained and paid in accordance with whichever of the following applies to the classification of newly established business: 1. When the annual business tax is measured by any of the following: gross receipts, gross production costs and gross receipts, gross cost of the work done, or gross receipts and salaries, wages, fees or other compensation paid, the applicant for a business tax registration certificate shall at the time of making application, pay a minimum amount of tax that will apply for the first year of operation. This minimum tax cannot be pro-rated. At the end of the business tax period, the taxpayer shall file a written statement as prescribed in Section 21.14 disclosing all the particulars required for the classification of that business. At the time of renewal, the taxpayer shall pay the actual tax owed for the first year of operation deducting any minimum tax previously paid for that year. This additional tax is computed at the current rate specified for the classification of that particular business. This tax is then measured and paid in the manner prescribed in Section 21.14. In all cases, the business tax shall be determined and paid in all business tax periods subsequent to the first business tax periods in the manner prescribed in Section 21.14. 2. When the annual business tax is measured by any of the following: the number of vehicles, machines, devices or articles of equipment used, the number of persons employed, square foot area, seating capacity, the scale of fees or other charges collected, the applicant for a business tax registration certificate shall file with the Director of Finance, a statement setting forth the applicable factors in use, expected to be in use, employed, or collected. The taxpayer is required to pay the business tax at the time of making the application when the business is started. The required application and the tax payment is due as follows: when the business tax period is daily, tax is due on or before the close of business on the day on which the business was started; when the business tax period is monthly or quarterly, the tax is due on or before the last day of the month in which the business was started; when the business tax period is annual, the tax is due on or before the last day of the month following the month in which the business was started. After the start of the business, the factor by which the tax is measured is increased in the first business tax period, an additional amount of tax becomes due, and this increase shall be reported and the additional amount of business tax paid in accordance with the provisions of Section 21.14. Business taxes in these cases for subsequent business tax periods shall be paid in accordance with the provisions of Section 21.14. 3. (i) When the provisions of this article impose a flat rate tax for a business tax period or a fractional part of a period, the applicant of a business tax registration certificate for a newly established business shall pay the business tax required at the time the application is made, without proration for any portion of the business tax period expired at the time the business started. (ii) When the provisions of this article impose a flat rate tax for a business tax period without the requirement that the full amount of the tax be paid for the business tax period or any fractional part of the period, the applicant for a business tax registration certificate for a newly established business shall, at the time the application is made, pay the business tax required to be paid prorated for the even monthly portion of the business tax period, which is unexpired at the time the business is started. (b) Except as otherwise provided in the foregoing cases, application by a newly established business for a business tax registration certificate and payment of the required business tax shall be made as follows: whenever the business tax period is daily, on or before the close of business on the day on which the business is started; whenever the business tax period is monthly or quarterly, on or before the last day of the month in which the business is started; whenever the business tax period is annual, on or before the last day of the month following the month in which the business started. In these cases, the business tax for subsequent business tax periods shall be paid when due and prior to the delinquency date provided in Section 21.05. SEC. 21.14. WRITTEN STATEMENTS WHEN REQUIRED COMPUTATION OF THE TAX. (a) Except where a provision of this article specifically provides a different method for the filing of a statement and payment of the business tax for a designated classification of business, statements required hereunder shall be filed and payment of the tax made in the following manner: 1. Whenever an annual business tax is measured by gross receipts, gross cost of production and gross receipts, gross cost of the work done, or gross receipts and salaries, wages, fees or other compensation paid, the person subject to the business tax shall, before the tax becomes delinquent, file with the Director of Finance a written statement setting forth whichever of the following is applicable to the classification of business being engaged in: The gross receipts of the preceding year; the gross cost of production and gross receipts of the preceding year; the gross cost of the work done in the preceding year; or gross receipts and salaries, wages, fees or other compensation paid in the preceding year; and such person shall pay at such time the amount of the business tax computed upon the measure of the tax reported in the statement. 2. Whenever a quarterly business tax is imposed upon the number of oil wells operated and the number of barrels of oil produced, the person subject to the tax shall, before the business tax for each quarter becomes delinquent, file with the Director of Finance a written statement setting forth the number of wells in operation and the number of barrels of oil produced by each well in the preceding calendar quarter and such person shall pay at such time the amount of the business tax computed upon the measure of the tax reported in the statement. 3. Whenever the business tax is measured by the number of vehicles, machines, devices, tables, articles of equipment used or persons employed, or whenever the business tax is measured by square foot area, seating capacity, the scale of fees or other charges collected, the person subject to the tax shall before the tax becomes delinquent file with the Director of Finance a written statement setting forth the then applicable factor or factors that constitute the measure of the tax and shall pay at such time the amount of the business tax computed thereon. In each case where the factor by which the tax is measured is increased during the business tax period and an additional amount of business tax becomes due, the person subject to the tax shall notify the Director of

Finance and pay the additional tax due in the following manner: When the business tax period is daily, on the day the increase occurs; when the business tax period is monthly or quarterly, within 30 days of the date on which the increase occurred; when the business tax period is annual, on or before the last day of the month following the month in which the increase occurred. (b) The written statements shall be made upon forms prescribed by the Director of Finance and shall include a declaration substantially as follows: I declare, under penalty of making a false declaration, that I am authorized to make this statement, and that to the best of my knowledge and belief it is a true, correct and complete statement made in good faith for the period stated, in compliance with the provisions of the Los Angeles Municipal Code. (c) Such statements shall not be conclusive against the City as to the information set forth therein, nor shall the filing of a statement preclude the City from collecting by appropriate action any additional tax that is later determined to be due and payable under the provisions of this article. (d) The Director of Finance and all of his or her deputies shall have the power and authority to require the person subject to the tax to provide any other information including a list of subcontractors, vendors and tenants that will help enforce the business tax. The operative date of this [sub]section will be January 1, 2005. (Added by Ord. No. 177,216, Eff. 2/8/06.) SEC. 21.15. DIRECTOR OF FINANCE DUTY TO ENFORCE POWERS RULES AND REGULATIONS. (a) Duty to Enforce. It shall be the duty of the Director of Finance, and he is hereby directed, to enforce each and all of the provisions of this article and Article 1.5, and the Chief of Police shall render such assistance in the enforcement of this article and Article 1.5 as may from time to time be required by the Director of Finance. (b) Inspection and Examination of Places of Business. The Director of Finance in the exercise of the duties imposed upon him, and acting through his deputies, shall inspect and examine all places of business in the City to ascertain whether or not the provisions of this article and Article 1.5 have been complied with. (c) Audit and Examination of Records and Equipment. The Director of Finance and the City Controller, and deputies of each of them, shall have the power to audit and examine all books and records, and, where necessary, all equipment, of any person engaged in business in the City for the purpose of ascertaining the amount of business tax, sales or use tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying the statements, or any item thereof, when filed by any taxpayer pursuant to the provisions of Secs. 21.13, 21.14 or 21.199, or Article 1.5. If such person, after written demand by the Director of Finance or City Controller, or a deputy of either, refuses to make available for audit, examination or verification such books, records or equipment as the Director of Finance, City Controller, or deputy of either, requests, the Director of Finance may, after full consideration of all information within his knowledge concerning the business and activities of the person so refusing, make an assessment in the manner provided in Sec. 21.16 of any taxes estimated to be due. (d) Inspection of Registration Certificates, etc. The Director of Finance and all of his deputies shall have the power and authority to enter, free of charge, during business hours, any place of business required to be registered and taxed by the provisions of this article or Article 1.5, and to demand exhibition of a business registration certificate and sales or use tax permit and evidence of amount of tax paid. Any person having any such business tax registration certificate, or sales or use tax permit, heretofore issued in his possession or under his control who fails to exhibit the same as well as evidence of amounts of tax paid on demand shall be guilty of a misdemeanor and subject to the penalty provided for by the provisions of this Code. (e) Extensions of Time for Filing. The Director of Finance may upon receipt of the written request of a taxpayer, and for good cause, extend the time for filing any statement required under the provisions of Section 21.13, 21.14 or 21.199, or Article 1.5 for a period of not to exceed 45 days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension if 90% or more of the total tax due is paid prior to the tax becoming delinquent. If less than 90% of the total tax due is paid prior to the tax becoming delinquent, a twenty percent (20%) penalty on any unpaid principal tax balance shall accrue. Interest shall accrue during said extension in the manner provided herein. (Amended by Ord. No. 176,160, Eff. 9/25/04.) (f) Compromise of Claims. The Director of Finance, subject to the provisions of the Charter, may compromise a claim for business tax where the portion of the claim proposed to be released is equal to or less than the monetary limitations set forth in Section 22.13, as adjusted by the Controller in accordance with Subsection (e) of that section. Compromise of claims in excess of $15,000.00, requires the written approval of the City Attorney. The Director of Finance is further authorized to enter into releases of the approved compromises subject to the approval of the City Attorney. (Amended by Ord. No. 179,984, Eff. 8/3/08.) (g) Minor Error in Payment. In the event a discrepancy exists between the amount of tax paid and the amount of tax due under this Article or Article 1.6, resulting in the underpayment or overpayment of the tax in an amount of $30.00 or less, the Director of Finance may accept and record the underpayment or overpayment without other notification to the taxpayer. (Amended by Ord. No. 181,860, Eff. 9/29/11.) (h) Rules and Regulations Apportionment. The Director of Finance may make such rules and regulations as are not inconsistent with the provisions of this article or Article 1.5 as may be necessary or desirable to aid in the enforcement of the provisions of this article and Article 1.5. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the business tax imposed by this article cannot be enforced without there being an apportionment according to the amount of business done in the City of Los Angeles, or in the State of California, as the case may be, the Director of Finance may make such rules and regulations for the apportionment of the tax as are necessary or desirable to overcome the constitutional objections. Such rules and regulations shall be approved by the City Attorney prior to becoming effective.

(i) Deficiency Determinations. If the Director of Finance is not satisfied that any statement filed as required under the provisions of this article or Article 1.5 of Chapter 2 of this Code is correct, or that the amount of tax is correctly computed, he may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his possession or that may come into his possession. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Sec. 21.16. (j) Payments, etc., Made by Mail. Whenever any payment, statement, report, request or other communication received by the Director of Finance is received after the time prescribed by this article or Article 1.5 for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed prior to the time prescribed in this article or Article 1.5 for the receipt thereof, or whenever the Director of Finance is furnished substantial proof that the payment, statement, report, or request for other communication was in fact deposited in the United States mail prior to the time prescribed for receipt thereof, the Director of Finance may regard such payment, statement, report, request or other communication as having been timely received. (k) Earthquake Related Extension. Upon the receipt on or before August 31, 1994 of the written request of a taxpayer showing that such taxpayer s business has been impacted by the earthquake of January 17, 1994 to the extent of preventing the filing of any statement required under the provisions of Sections 21.13 or 21.14 or Article 1.11 of this Code or the payment of any tax required in connection therewith for such business prior to the delinquency date, the Director of Finance shall extend the delinquency date for filing any such statement and paying any such tax for such business to September 1, 1994. No penalty or interest shall accrue prior to September 1, 1994 by virtue of such extension of the delinquency date. The relief provided in this subsection shall be an alternative to the relief provided in Subsection (e) of this section and not in addition thereto, and shall be applicable only to annual taxes due in 1994. (Amended by Ord. No. 169,853, Eff. 7/4/94, Oper. 2/28/94.) (l) Requirement of Payments by Electronic Funds Transfer. All tax payments in the amount of fifty thousand dollars ($50,000) or more shall be paid via a financial institution's electronic funds transfer. (Added by Ord. No. 176,160, Eff. 9/25/04.) (m) Credit Card Transaction Fee for On-line Payment. Every person who files their renewal online and pays their business tax with a credit card shall pay a transaction fee in the amount of $3.00. The purpose of this fee is to offset a portion of the administrative costs incurred by the City for those transactions. (Added by Ord. No. 180,358, Eff. 12/20/08.) (n) Public Disclosure of Tax Delinquencies. (Added by Ord. No. 180,378, Eff. 1/4/09.) (i) Notwithstanding any other provision of law, the Director of the Office of Finance shall make available as a matter of public record each calendar quarter a list of the largest 250 tax delinquencies in excess of one hundred thousand dollars ($100,000.00) under this part. For purposes of compiling the list, a "tax delinquency" means an amount owed to the City of Los Angeles as to which all of the following apply: (A) That has been submitted to the Director of Finance for a finding that the delinquent tax is unpaid and the administrative process has been completed pursuant to Los Angeles Municipal Code Section 21.16. (B) (C) The amount of tax has been delinquent for more than ninety (90) days. For purposes of the list, a tax delinquency does not include any delinquency that would be uncollectible by operation of law. (ii) Each quarterly list shall include all of the following with respect to each delinquency: (A) The name of the person or persons liable for payment of the tax and the person's or persons' last known business address. (B) The amount of tax delinquency as shown on the notice or notices of the tax delinquency and any applicable interest or penalties, less any amounts paid. (C) The type of tax that is delinquent. (iii) Prior to making a tax delinquency a matter of public record as required by this section, the Director of Finance shall provide a preliminary written notice to the person or persons liable for the tax by certified mail, return receipt requested, demanding payment of the amount owed and informing the person or persons that nonpayment may result in the tax delinquency being made a matter of public record. If within 30 days after issuance of the notice, the person or persons do not remit the amount due or make arrangements with the Director of Finance for payment of the amount due, the tax delinquency shall be included on the list. (iv) The quarterly list described in subsection (n)(i) shall include the telephone number and address of the Office of Finance in order to provide a point of contact if a person believes the placement of his or her name on the list is in error. (v) A person whose delinquency appears on the quarterly list, and who satisfies that delinquency in whole or in part, may request the Director of Finance to include in the quarterly list any payments that person made to satisfy the delinquency. Upon receipt of that request, the Director of Finance may include those payments on the list as promptly as feasible.

(o) Liens for Unpaid Taxes. (Added by Ord. No. 181,238, Eff. 9/12/10.) (i) The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city. If the tax is not paid when due, such tax, penalty and interest shall be a lien against the taxpayer's property for the amount thereof, which lien shall continue until the amount thereof including all penalties and interest are paid, or until it is discharged of record. (ii) The Director of Finance may record liens against property to collect unpaid taxes, interest, and penalties upon the exhaustion of the administrative process to determine the amount of such liabilities under this Chapter. Such liens may be recorded against real property used in connection with activities that generated the tax liability or against personal property used in connection with activities that generated the tax liability. Such liens shall be recorded according to applicable law in the jurisdiction in which the property is located. (iii) Prior to recording a lien for unpaid taxes, interest, and penalties, the Director of Finance shall provide a report requesting approval of the lien to the City Council, with the taxpayer's name, amount of tax, interest, and penalties owed, and the tax periods for which taxes will be collected. The report shall be referred by the City Clerk to the full City Council without referral to any Council Committee, and duly placed upon the agenda of the City Council. No request for approval of a lien shall be made to the City Council unless the City Attorney has determined that a sufficient basis exists to support the liability and that assets exist to which the liability could attach. The Director of Finance shall provide at least 15 days notice of the hearing before the City Council to the taxpayer by mailing a copy of the report to the address contained in the most recent records of the Office of Finance. Notice shall be deemed complete at the time of deposit in the United States mail. (Amended by Ord. No. 182,111, Eff. 5/29/12.) (iv) Upon a majority vote by the City Council to approve the recordation of lien(s), the Director of Finance or his designee may record in the proper office a certificate which specifies the amount of tax, interest and penalties due, the name and last known address of the person liable for the same, a statement that the Director of Finance has determined the correct amount to be paid and a legal description of the property owned by the taxpayer to which the lien applies. From the time of the recording of the certificate, the amount required to be paid together with interest and penalties constitutes a lien upon all property to which the lien can attach and to property owned by the taxpayer used in connection with activities subject to taxation under this Chapter. The lien has the force, effect and priority of a state tax lien and shall continue for ten (10) years from the filing of the certificate unless sooner released or otherwise discharged, or unless a term is otherwise provided by applicable law. SEC. 21.16. ASSESSMENT ADMINISTRATIVE REMEDY. (Amended by Ord. No. 138,968, Eff. 8/9/69.) (a) Assessment of taxes. Whenever the Director of Finance determines that any tax is due or may be due to the City of Los Angeles under the provisions of this chapter, he may make and give notice of an assessment of such tax. The notice of assessment shall separately set forth the amount of any tax known by the Director of Finance to be due or estimated by the Director of Finance, after full consideration of all information within his knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. (b) Service of assessment; right to hearing. The notice of assessment shall be served upon the person either by handing it to him personally, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business appearing on the face of the registration certificate issued to him or to such other address as he shall register with the Director of Finance for the purpose of receiving notices provided under this chapter; should the person have no registration certificate issued to him and should he have no address registered with the Director of Finance for such purpose, then to such person s last known address. For the purpose of this section, a service by mail is complete at the time of deposit in the United States mail. Within 15 days after the date of service, the person assessed may either apply in writing to the Director of Finance for a hearing on the assessment or may file a written request that such hearing be waived. If the person neither requests a hearing upon the assessment nor requests a waiver of hearing within the prescribed time, the amount of the assessment shall be final and the amount thereof shall immediately be due and owing to the City of Los Angeles, but penalties and interest as provided by this chapter shall continue to accrue until paid. (c) Waiver of hearing. If the person requests that the hearing be waived, the Director of Finance may either grant such request and notify the person thereof in writing or may, in his discretion, deny the request and set the assessment for hearing at the time and in the manner prescribed by Subsection (d) hereof. If the Director of Finance grants the request for waiver of hearing, the administrative proceedings prescribed by this section shall be deemed exhausted and the City shall have the right to bring an action in any court of competent jurisdiction to collect the amount of the assessment, plus such penalties and interest as may have accrued thereon as provided by this chapter. (d) Time of hearing; notice. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) If the person requests a hearing upon the assessment or if the Director of Finance denies the person s request for waiver of hearing, the Director of Finance shall cause the matter to be set for hearing before an Assessment Review Officer not later than 90 days after the date of the application, or, as the case may be, the date of the Director of Finance s denial of the waiver of hearing. A request for hearing shall be accompanied by a written statement of the basis or bases for the request. Notice of the time and place of the hearing shall be mailed by the Director of Finance to the person assessed not later than 15 days before the date set for hearing and, if the Director of Finance desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced. (e) Administrative hearing. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) The hearing prescribed by this section shall be before an Assessment Review Officer. The Assessment Review Officer shall be appointed by the Director of Finance and shall be an employee of the Office of Finance. At the hearing, the person assessed and the representative of the Director of Finance, who shall be a person other than the Assessment Review Officer, may submit such evidence

as they believe to be relevant to their respective positions. The Assessment Review Officer may require the presentation of additional evidence from either the person assessed or the representative of the Director of Finance, or from both, and may continue the hearing from time to time for the purpose of allowing the presentation of additional evidence. (f) Decision of Assessment Review Officer. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) Upon completion of the hearing, the Assessment Review Officer may (i) affirm the assessment, (ii) increase the assessment, or (iii) decrease the assessment, as the evidence may require; but the amount of the assessment shall not be increased unless the claim for the increase is asserted on behalf of the City either before or during the hearing. Written notice of the decision of the Assessment Review Officer shall be given to the person assessed in the same form and in the same manner as the notice of assessment. (g) Optional Office of Finance Appeals. (Amended by Ord. No. 177,019, Eff. 11/14/05.) The Office of Finance may, at its discretion, establish one or more advisory bodies, which may be composed of City staff and members of the public, including members of the business community, to hear appeals from decisions of the Assessment Review Officer. If the Office of Finance does establish one or more boards and the person assessed does not appeal, he or she shall nevertheless be deemed to have exhausted the administrative proceedings provided by this section. (h) Hearing Before Board of Review. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) At the hearing before the Board of Review, the appellant and the representative of the Director of Finance, who shall be a person other than a member of the Board of Review, may submit such evidence and argument as they believe to be relevant to their respective positions. The Board of Review may require the presentation of additional evidence or argument, or both, from either the appellant or the representative of the Director of Finance, or from both, and may continue the hearing from time to time for the purpose of allowing the presentation of additional evidence or argument, or both. (i) Decision of Board of Review. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) Upon completion of the hearing, the Board of Review may, by majority vote of its members, affirm or decrease the assessment, as the evidence may require. Written notice of the decision of the Board of Review shall be given to the appellant in the same form and in the same manner as the notice of assessment. (j) Effect of Delay in Administrative Proceedings. (Added by Ord. No. 174,084*, Eff. 8/19/01.) Failure of the Director of Finance to set any hearing within the time prescribed in this section shall not affect the validity of any proceedings taken hereunder. (k) Effect of Payment of an Assessment. (Added by Ord. No. 174,084*, Eff. 8/19/01.) Acceptance of any payment upon an assessment, the validity of which has not previously been passed upon by the Assessment Review Officer, shall not preclude the Director of Finance from subsequently levying another assessment in any case where the original assessment does not truly reflect the correct tax liability. * The provisions of this Ordinance shall become operative with respect to assessments of tax levied by the Director of Finance under Los Angeles Municipal Code Section 21.16 on and after January 1, 2002. SEC. 21.17. CONFIDENTIAL CHARACTER OF INFORMATION OBTAINED DISCLOSURE UNLAWFUL. (Amended by Ord. No. 180,380, Eff. 1/5/09.) (a) It shall be unlawful for the Director of Finance or any person having an administrative duty under the provisions of this Article or Article 1.6 to make known in any manner whatever the business affairs and operations of, or the nature, amount or source of income, profits, losses, expenditures, net worth, or any particular thereof, or any other information set forth in any statement or return or obtained by an investigation of records and equipment of, any person required to obtain a business tax registration certificate or sales or use tax permit, or pay business, sales or use tax or any other person visited or examined in the discharge of official duty, or to permit any statement or return, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person. (b) Nothing in this section shall be construed to prevent: 1. the disclosure of information to, or the examination of records and equipment by, another City official or employee or a member of the Board of Review for the sole purpose of administering or enforcing any provision of this article or Article 1.6; 2. the disclosure of information to, or the examination of records by federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists; or to a grand jury; 3. the disclosure of information and results of examination of records of a particular taxpayer, or relating to a particular taxpayer, with respect to any proceeding in a court of law or before an administrative body in which the existence or amount of any business, sales or use tax liability of the particular taxpayer to the City of Los Angeles is relevant and material and the particular taxpayer is a party to the proceeding, including but not limited to proceedings before any Board or Commission as set forth in Municipal Code section 22.02; 4. the disclosure after the filing of a written request to that effect, to the taxpayer himself, or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, however, that the City Attorney approves each such disclosure and that the Director of Finance may refuse to make any disclosure referred to in this paragraph when in his opinion the public interest would suffer thereby; 5. the disclosure of the names and addresses of persons to whom registration certificates or sales tax and use tax permits have been issued;

6. the disclosure of such information as may be necessary to the City Council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of business, sales or use taxes, or submits an offer of compromise with regard to a claim for refund of business, sales or use taxes, or submits an offer of compromise with regard to a claim asserted against him by the City for business, sales or use taxes, or where the existence or amount of business, sales, or use taxes are otherwise relevant to the determination of a matter required to be submitted to the City Council under the City of Los Angeles Charter, the Los Angeles Municipal Code, or the Los Angeles Administrative Code; 7. the disclosure of information to, or the examination of records by, contractors or employees of contractors with whom the City of Los Angeles has contracted to assist the City of Los Angeles for the sole purpose of administering or enforcing any provision of this Article or Article 1.6, if the contract requires the persons granted access to such information or records to abide by the confidentiality requirements of this Section, and if the City Council has approved the award and execution of such contract; 8. the disclosure of information to, or the examination of records by, purchasers of accounts receivable pursuant to Los Angeles Administrative Code section 5.186, or the disclosure to any employees of such purchasers of accounts receivable, if the purchase agreement requires the persons granted access to such information or records to abide by the confidentiality requirements of this Section; 9. the disclosure of the identity of any particular taxpayer with delinquent business, sales, or use taxes and the type and amount of the delinquent business, sales, or use tax liability of that taxpayer, and the publication of such information at the discretion of the Office of Finance pursuant to Los Angeles Municipal Code section 21.15(m); 10. the disclosure of information when compelled by an order of court or other judicial process; and 11. the disclosure of statistical or cumulative information when the disclosure does not identify any particular taxpayer or reveal information in a manner that could identify a particular taxpayer. SEC. 21.18. DELINQUENT TAXES INSTALLMENT PAYMENT. (a) No registration certificate shall be issued, nor shall a suspended certificate be reinstated, to any person who, at the time of applying therefor, is indebted to the City of Los Angeles for any delinquent business, sales or use taxes, unless such person, with the consent of the Director of Finance, enters into an agreement with the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a period of not to exceed one year. (Amended by Ord. No. 160,389, Eff. 10/21/85.) (b) Persons indebted to the City of Los Angeles for delinquent business, sales or use taxes may, with the consent of the Director of Finance enter into an agreement with the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a period of not to exceed one year. (c) In any agreement so entered into, the person shall acknowledge the obligation owed to the City and agree that in the event of failure to make timely payment of any installment, the whole amount unpaid, together with accrued interest, shall become immediately due and payable; and that in the event legal action is brought by the City to enforce collection of any amount included in the agreement, the person will pay all costs of suit incurred by the City of Los Angeles, including a reasonable attorney s fee. The execution of such a contract shall not prevent the accrual of interest on unpaid balances at the rate provided in Sec. 21.05. No penalties shall accrue on account of delinquency for taxes owed during the period covered by the contract after the execution of the contract and the payment of the first installment. SEC. 21.19. DELINQUENT TAXES SUIT FOR RECOVERY. (Amended by Ord. No. 180,358, Eff. 12/20/08.) (a) Any tax required to be paid under the provisions of this article, shall be deemed a debt owed to the City. Any person engaging in a business required to obtain a registration certificate and pay a business tax who fails to obtain such certificate shall be liable from the date they became subject to the tax, but in no event shall such person be liable for a period greater than eight (8) years. Any person owing any tax under the provision of this article shall be liable in an action brought in the name of the City of Los Angeles in any court of competent jurisdiction for recovery of any such amount. (b) An action to collect the business tax and any related penalty and interest must be commenced within three years of the date the business tax becomes delinquent. The statute of limitations on an action by the City to collect unpaid taxes is tolled while the City is unaware of the existence or ongoing activities of a business due to the taxpayer's failure to obtain a registration certificate and pay a business tax. The statute of limitations is also tolled while an administrative appeal is pending. SEC. 21.20. DELINQUENT TAXES DEBT NOT DISCHARGED BY PENAL CONVICTION. The conviction of any person for engaging in business without obtaining a registration certificate, or for failure to pay any tax due under or otherwise comply with the provisions of this article or Article 1.5, shall not relieve the person from the obligation to pay any taxes that he may owe the City, nor shall the payment of any taxes owed prevent a prosecution under appropriate provisions of the Municipal Code for any violation of the provisions of this article or Article 1.5. The remedies provided in this Code are cumulative. The use of one or more of the remedies prescribed in this article shall not bar the use of any other remedy provided

for the enforcement of the provisions of this article or Article 1.5. SEC. 21.21. DELINQUENT TAXES UNCOLLECTIBLE. (Amended by Ord. No. 141,263, Eff. 12/21/70.) If the Director of Finance finds that any amount of tax due or believed to be due under the provisions of this article or Article 1.5 cannot be collected, or that efforts to collect any such amount would be disproportionately costly with relation to the probable outcome of the collecting efforts, he may prepare a report setting forth his finding and the reasons therefor, and submit it to a Board of Review constituted as provided in Sec. 21.16 of this Code. Upon unanimous approval of a finding by the Board of Review, the Director of Finance may remove from his active accounts receivable any unpaid tax owing or believed to be owing. If the Board of Review does not unanimously approve the finding, the matter shall be returned to the Director of Finance. The removal from the active accounts receivable of the Director of Finance of any unpaid tax as provided herein shall not preclude the City from collecting or attempting to collect any such tax that later proves to be collectible. SEC. 21.22. RELIGIOUS, CHARITY, ETC.; PROCEDURE FOR ISSUANCE OF TAX EXEMPT REGISTRATION CERTIFICATES. (Amended by Ord. No. 149,522, Eff. 5/23/77.) (a) The provisions of this article shall not be construed to require the payment of any business tax to operate or carry on the functions of any charitable or religious institution, organization or association organized for charitable or religious purposes and conducted solely for such purposes, nor the payment of any business tax to engage in teaching, preaching or otherwise disseminating any religious tenets or the beliefs of any religion; nor shall any business tax be required to be paid by any religious or other charitable association, including fraternal, educational, civic, military, state, county and municipal organizations and associations, for the conducting or staging of any theatrical, art, or sporting exhibition or similar event, or any dance, concert, or lecture, when the net proceeds derived from any of the same are not used for the purpose of private gain to any individual but are used wholly for the benefit of such organization or for charitable or benevolent purposes, nor shall a business tax be required to be paid by any credit union corporation. Such persons are entitled to receive tax exempt registration certificates upon application for and qualification as provided in this section. (b) An independent contractor who for profit or gain undertakes to carry on any business or activity, for the conduct or operation of which a registration certificate and business tax is required by any section of this article, shall not be exempted from the registration and tax requirements of this Article because of the fact that he has paid or agreed to pay or turn over to any charitable institution or organization a portion of the receipts of the business or activity as a reward or recompense for the sponsorship of the business or activity, or for any other reason, and such a contractor shall not be deemed to be acting for purposes entitling him to a tax exempt registration certificate. (c) 1. The Director of Finance shall, upon application, issue a tax exempt registration certificate to any credit union corporation upon being furnished with satisfactory evidence of its incorporation and operation as such. 2. Any applicant for a tax exempt registration certificate authorized in Subsection (a), other than a credit union corporation, shall make an application upon a form furnished by the Director of Finance. The application shall be forwarded to the Board of Police Commissioners which shall make or cause to be made such investigation of the applicant and the activity carried on or proposed to be carried on as may be necessary to determine whether or not the applicant and the activity for which a tax exempt registration certificate is applied for meet the requirements of Subsection (a) hereof, and that the proceeds of the activity, if any, are to be used for the purposes mentioned therein. The Board of Police Commissioners shall endorse its finding upon the application and return the same to the Director of Finance. If the finding is to the effect that the requirements of Subsection (a) are met, the Director of Finance shall then issue a tax exempt registration certificate provided the applicant has complied with all other applicable provisions of this Code; provided further, however, that when the activity to be engaged in is of the kind for which the applicant must file a Notice of Intention as provided in Article 4 of Chapter 4 of this Code, no tax exempt registration certificate shall be issued until such Notice of Intention has been filed and an Information Card issued to the applicant as provided in said Article 4. The registration certificate so issued shall show on its face that it is tax exempt. If the finding of the Board of Police Commissioners is that the requirements of Subsection (a) hereof are not met, no registration certificate shall be issued without payment of the tax prescribed in the appropriate section of this article. (Amended by Ord. No. 173,283, Eff. 6/26/00, Oper. 7/1/00.) (d) If at any time any activity listed in Subsection (a) as being entitled to the issuance of a tax exempt registration certificate is conducted in such a manner that, had it been disclosed in the application described in Subsection (c), would not have entitled the person carrying on the activity to a tax exempt registration certificate, or if the net proceeds derived from those activities named in Subsection (a) are not used for a purpose approved therein, any tax exempt registration certificate therefore issued shall be void and the full amount of the tax shall be due and payable. (e) Subject to the provisions of Subsection (d) hereof, upon the Director of Finance s issuance of a tax exempt registration certificate to a person, any tax, including any penalty or interest accrued thereon, owing by such person pursuant to any provision of this article for any period prior to such issuance by virtue of carrying on any activity described in Subsection (a) hereof in the manner prescribed therein which would have entitled such person to receive a tax exempt registration certificate shall be canceled as if it had never become due or owing, and, if paid, a refund thereof shall be made, subject to the provisions of Section 21.07 of this Code, as if it had been overpaid. (Added by Ord. No. 149,522, Eff. 5/23/77.) SEC. 21.23. EFFECT OF REPEALS AND AMENDMENTS. Except where a repealing or amendatory ordinance specifically provides otherwise, the amendment or repeal of any portion of Article 1 or Article 1.5 shall not

be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City of Los Angeles from any person under the provisions of said articles as they existed prior to such amendment or repeal. The rule of construction required by this section is declared to be in clarification and confirmation of the existing intent of said articles, and is not to be construed as applying solely to the effect of repealing or amendatory ordinances adopted subsequent to the effective date of this section. SEC. 21.24. EXEMPTION FOR PERSONS HAVING EQUAL OR GREATER PAYROLL EXPENSE TAX LIABILITY. (Repealed by Ord. No. 174, 272, Eff. 11/26/01.) SEC. 21.25. RELIEF FOR EARTHQUAKE INTERRUPTION. (Added by Ord. No. 169,977, Eff. 9/3/94.) (a) Any taxpayer whose business at any location was interrupted for a period of not less than sixty (60) consecutive days as a result of the earthquake of January 17, 1994, upon written application and proof of such interruption to the reasonable satisfaction of the Director of Finance, shall be deemed to have terminated said business at said location on December 31, 1993. (b) Upon resumption of any business described in Subsection (a) of this section, if the business tax is an annual tax measured by gross receipts, gross production costs and gross receipts, gross cost of the work done, or gross receipts and salaries, wages, fees or other compensation paid, said business shall be deemed to be a newly established business subject to taxation in accordance with the provisions of Section 21.13(a)1 of this article, except that the measure of any additional tax for 1994 shall not commence prior to the date of resumption of said business. (c) Upon resumption of any business described in Subsection (a) of this section, if the business tax is a flat rate for a year or a fractional part thereof, said tax shall be computed by multiplying the flat rate by a fraction, the numerator of which is the number of days from the resumption of the business through December 31 and the denominator of which is 365. SEC. 21.26. EMPOWERMENT ZONE - CITY BUSINESS TAX REDUCTIONS, LIMITATIONS, AND EXEMPTIONS. (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 12.70B. (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 L.A.M.C. 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. 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 SECTION ONE FIRST HALF OF PART A INTERSECTION OF N. BROADWAY AND THE LOS ANGELES RIVER

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) 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 SECTION TWO INTERSECTION OF S. CENTRAL AVE. & E. MANCHESTER