Small Businesses / Revenue Losses / Penalty Fees / Tax Payment Installment Agreement / Non-GRT Tax

MOTION-- The effects of the COVID-19 pandemic on the small business community in the City of Los
Angeles have forced business owners to function at limited capacities, or to shut their doors
entirely. to comply with public health requirements. The revenue shortfalls have been
significant, and business recovery from those revenue losses will be slow as they reopen at
limited capacities.

An area of immediate concern for retaining these struggling businesses is the annual
business tax payment requirement by the City. The Office of Finance (Finance) processed
164,629 business tax payments for the 2020 tax period. This year, Finance has processed
103,836 payments; however, there is a significant number of businesses that have not made
any payments due to their revenue losses. Finance does provide small businesses with an
option to enter into an agreement for payment installments; however, the appropriate
threshold for repayment ($1000 minimum) must be met. There are approximately 16,000
small businesses in the City of Los Angeles that were unable to meet the minimum
threshold to enter that agreement, still have yet to pay their basic required fees, and have
been accruing penalty fees.

I THEREFORE MOVE that the Council REQUEST that the City Attorney, with the assistance
of the Office of Finance, draft an ordinance to provide the following relief:

1. Lower the threshold for a business to enter into a payment installment agreement
with the City from $1000 to $300.

2. Eliminate the interest for monthly business tax installments for businesses that have
elected to pay their business tax via the installment plan.

3. Extend the business tax deadline to 2/28/2022 for the fund/classes that pay
non·GRT tax and have been forced to stay closed due to the City's SAH order

4. Extend the LAPD and LAFD permit renewal fee deadlines to 6/30/2021.