To help boost fledgling businesses in Los Angeles, the City Council on Tuesday passed a package of tax reforms that includes a tax break on start-up companies' first $500,000 in revenue.
The tax reform package--long heralded by Mayor Richard Riordan and business leaders--will also allow businesses the option of filing taxes for fiscal years instead of calendar years.
Also under the new law:
* Start-up businesses will pay no city business tax in their first taxable year of operation on revenue under $500,000. This change takes effect Jan. 1, 2001. New businesses that are formed in 2000 will be eligible for a back-taxes exemption.
* Firms that make $5,000 or less will pay no city taxes. To be eligible, companies need to obtain a business tax registration crtificate and an exemption letter from the city clerk. This reform goes into effect Jan. 1, 2001.