Tax Amnesty Extended for Home Businesses
Los Angeles residents who operate home businesses do not have to pay past business taxes when they apply for a license during an extended amnesty period, the Los Angeles City Council decided Wednesday.
The vote extends a previous amnesty period from June 5 to Sept. 5. During that time, home business operators do not have to pay penalties or past businesses taxes when applying for new licenses.
The action rectifies an oversight that the council made when it voted in November to legalize home businesses. To encourage home business operators to get licenses, the city offered an amnesty period starting in March.
But the council did not realize that city laws requires businesses to pay taxes for the previous three years even if they have operated illegally during that time.
Councilwoman Laura Chick proposed the amendment to waive the back taxes. “This improved amnesty program corrects the retroactive nature of the city’s tax collection laws,” she said.
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