Los Angeles City Business Tax Registration Certificate

[Tim The Enchanter]

I'm wondering if anyone has knowledge or experience with this.
I have been informed by a letter from the City that (they think) I am supposed to have this cert, and may be out of compliance and subject to who knows how much $ in penalties. The letter is clear as mud on the amount. No tax rate is given, I guess it varies.

"Complete and return the enclosed application... give a full explanation of your business activities including gross calender year receipts...... and we will send a billing for applicable liabilities for prior tax years."
Sounds like a mugging.

It references AB63, tax discovery program, and LAMC 21.03.
Any info on this batch of laws I never heard of , or perhaps suggestions on who might be qualified to advise me a bit on what to do would be appreciated.

 

[Terrel L. Shields]

Sounds like you appraisers are engaged in a mass carnival of crime.... Like when Missouri sent every business registered in counties adjacent but in another state, telling them they owe them taxes if they worked across the line I wrote the governor and told him I wasn't even going to buy anything in his state now, so GFY

 

[Tim The Enchanter]

It appears from my reading that if gross revenues are <$100k you can file to be an exempt small business.
No tax in that case, but you must get the secret cert ahead of time. Otherwise they jack you for taxes and penalties and fees.
Six years later!

I will be happy to pay 6 years of license fees, but not taxes on my gross receipts.

 

[Tim The Enchanter]

They said I'm breaking the what?

 

[Randolph Kinney]

It is a shake down! I remember when the state was sending out letters from the franchise tax board claiming that you own sales and use taxes because they suspect you were buying from the internet and avoiding sales taxes.

LA is in more financial problems and needs the money.

The city of Carlsbad requires a business license too, $50 for me. The state capriciously added $1 for themselves last year because they need the money.

 

[panappr]

I used to pay LA City Tax, 5.40 per thousand, exempt under a certain amount (it kept changing), they claimed anyone making money in the city was subject too it and had to file a DBA.... unless you are an independant contractor working for an AMC or Appraisal Mill. I remember appraisers in certain cities like Burbank and Glendale didn't have to have a Business License

 

[panappr]

They said I'm breaking the what?

Funny thing is, if you are ever audited by the State or anyone for that matter the first question out of their mouth is "Do you have a business license" especially if you have employees or independent contractors...

 

[Tim The Enchanter]

My understanding was I don't need a business license and don't need to file a DBA if I am just doing business under my own name.
And I am a one man shop, no employees or anything.
Shakedown is about right.

 

[panappr]

I agree with you 100%.... and most likely would not pay, but I had employees and at least 10 appraisers (independent contractors) working full time so there was a need to establish my presence as a company.... Oh and I was audited by the state (EDD).... The first thing my attorney made me do was get a business license.... I paid the penalty's.....

 

[LordofTexas]

I filed a DBA before I first went on my own and it wasn't 1 week later that I got a similar request. Also, they wanted to know of any and all office equipment including desks, chairs, tables, computers, file cabinets, printers, and the such so that they could get a gross taxable "physical business" worth. I sent the letter back indicating I have YET to actually form the business. In all these years, I have yet to hear back from them (knock on wood). But also, I think I'm actually exempt due to revenue and a non-physical business location away from my house.