The City of Los Angeles imposes a tax on businesses operating within city limits. As a result of a lobbying effort by the Guild, however, the City Council in 2005 created an exemption from the business tax for "creative artists," including writers and writers' loan-out corporations. The exemption generally provides that no tax is payable on gross business receipts up to $300,000 generated from creative activities.
The City's Office of Finance has posted Frequently Asked Questions about the creative artist exemption on the City's Web site: http://finance.lacity.org/content/EntertainmentCreativeTalentFAQ.htm. The FAQ answers a variety of questions, including what income is subject to the tax and how a taxpayer may claim the exemption. You may also call the City's business tax hotline at (213) 473-5901.
If you have additional questions about the LA business tax, please contact the Member Services/Organizing department at (323) 782-4567.