Aligning City and Federal Business Tax Deadlines
Posted by Councilmember Englander on February 23, 2018 at 11:42 AM
This week City Council passed a motion I introduced to move the deadline for Los Angeles businesses to file taxes so that it aligns with and federal filing deadlines. Aligning the deadlines will benefit both the City and its businesses by reducing accounting and administrative costs.
The current filing deadline is a burden for Los Angeles businesses and makes our City a less attractive place to incorporate. We make it more complicated for businesses when we ask them to file their taxes on a separate timeline from federal and state agencies. This motion will simplify the process, reduce costs, and allow Los Angeles businesses to focus on what they do best: bringing jobs and economic development to our communities.
In addition to making our City more business friendly, a new ordinance is expected to increase compliance among Los Angeles businesses. Currently, only 69 percent of businesses file on time. The next 15 to 20 percent of businesses file upon receiving a Notice of Hearing for failure to file, and the remainder only file as a result of sweeps performed by the Office of Finance.
With the motion now passed by the full Council, the item goes to the City Attorney which will craft an ordinance based on the legislation. The draft ordinance will then return to Council for a final vote.