Home-Based Businesses in L.A. Exempted From Registration, Fee
Home-based business owners in Los Angeles will not have to register and pay a $25 fee, the City Council decided Friday. But they still will be required to pay city taxes.
The change, which will take effect in about 30 days, is the latest tinkering with the controversial ordinance. Since legalization of Los Angeles home-based businesses in March 1997, two lawsuits have been filed against it and state legislation proposed.
For the record:
12:00 a.m. May 18, 1998 For the Record
Los Angeles Times Monday May 18, 1998 Home Edition Business Part D Page 2 Financial Desk 1 inches; 29 words Type of Material: Correction
Home-based-business tax--A story in Saturday’s Business section incorrectly stated when changes for Los Angeles’ home-based-business tax would take effect. They will take effect in about six weeks.
Councilwoman Laura Chick pushed for a revision to end confusion over who should register as a home-based business. The confusion arose because the ordinance delineates 20 conditions that a business owner must meet. Those conditions will remain but will be enforced only on a complaint basis.
Even with the change, however, opposition to the ordinance continues. The Writers Guild and the Howard Jarvis Taxpayers Assn., which filed lawsuits, contend that the city illegally created a new tax without a public vote.
Meanwhile, Assembly Bill 2065, by Assemblyman Tony Cardenas (D-Sylmar), would create a statewide exemption from registration and payment of taxes for home-based businesses that minimally impact neighborhoods.
