CHAPTER II*LICENSES, PERMITS, BUSINESS REGULATIONS

Article

1 Business Taxes

1.1 Telephone, Electricity and Gas Users Tax

1.2 1984 Olympic Games Ticket Distribution Tax

1.3 Commercial Tenant’s Occupancy Tax

1.5 Use Tax [Suspended]

1.6 Uniform Sales and Use Tax

1.7 Transient Occupancy Tax

1.8 Cigarette Tax Ordinance

1.9 Real Property Transfer Tax

1.10 Dwelling Unit Construction Tax

1.12 Tax Penalty Amnesty

1.13 Residential Development Tax

1.14 Special Fire Safety and Paramedic Communications Equipment Tax

1.15 Parking Occupancy Tax

1.16 Special Police Communications / 911 System Tax

1.17 Enterprise Zone Hiring Tax Credit Voucher Application Fees

2 Definitions – Authority and Procedure – Revocation of Permits

6 Bicycles and Vehicles

8 Advertising

9 Repossession of Motor Vehicles – Permit Requirements

* Each reference in Sections 21.00 through 29.02, inclusive, to ‘City Clerk’ is amended to read ‘Director of Finance’ (Amended by Ord. No. 173,304 Eff. 6/30/00, Oper.7/1/00). However, the City Clerk shall continue to perform the functions under Chapter II until such time as the Mayor and Council establish an official date of transfer ofresponsibilities.

ARTICLE 1BUSINESS TAXES

(Art. 1, Ch. II, Added by Ord. No. 115,044, Eff. 1/1/60; Title Amended by Ord. No. 178,101, Eff. 1/9/07.)

Section21.00 Definitions.21.01 Unlawful Business Not Authorized.

21.02 Constitutional Exemptions.21.03 Imposition of Tax.21.03.1 Automatic Tax Rate Reduction21.04 Due Dates.21.05 Delinquent Dates – Interest – Penalties.21.06 Separate Registration Certificate Required for Each Location and Each Business Tax Classification.21.06.1 Single Primary Tax Classification Election.21.07 Refunds of Overpayments.21.08 Business Tax Registration Certificate – Form.21.09 Business Tax Registration Certificates – Posting and Keeping.21.10 Business Tax Registration Certificates – Charge for Duplication.21.11 Business Tax Registration Certificate – Transfer.21.12 Business Tax Registration Certificates – Suspension.21.13 Newly Established Businesses – Computation of Business Tax.21.14 Written Statements – When Required – Computation of the Tax.21.15 Director of Finance – Duty to Enforce – Powers – Rules and Regulations.21.16 Assessment – Administrative Remedy.21.17 Confidential Character of Information Obtained – Disclosure Unlawful.21.18 Delinquent Taxes – Installment Payment.21.19 Delinquent Taxes – Suit for Recovery.21.20 Delinquent Taxes – Debt Not Discharged by Penal Conviction.21.21 Delinquent Taxes – Uncollectible.21.22 Religious, Charity, Etc.; Procedure for Issuance of Tax Exempt Registration Certificates.21.23 Effect of Repeals and Amendments.21.25 Relief for Earthquake Interruption.21.26 Empowerment Zone - City Business Tax Reductions, Limitations, and Exemptions.21.27 Entertainment and Multimedia Business Tax Limitations.21.29 Small Business Exemption.21.30 New Business Exemption.21.31 Settlement Bureau.21.32 Rewards for Information.21.33 [Tax Rates.]21.41 Gross Receipts Fund Class 1.21.42 Gross Receipts Fund Class 2.21.43 Gross Receipts Fund Class 3.21.44 Gross Receipts Fund Class 4.21.45 Gross Receipts Fund Class 5.21.46 Gross Receipts Fund Class 6.21.47 Gross Receipts Fund Class 7.21.48 Gross Receipts Fund Class 8.21.49 Gross Receipts Fund Class 9.21.50 Taxation of Medical Marijuana Collectives.21.53 Amusement Park.21.55 Auctioneer.21.62 Billiards, Etc.21.63 Amusement Machines.21.64 Coin-operated Phonographs and Music Machines.21.65.1 Coin-operated Scales and Service Machines.21.70 Bowling Alley, Skee-ball Shuffleboard, Etc.21.74 Circuses.21.75 Side Shows, Carnivals, Concessions.21.83 Dance Hall.21.85 Public Dance.21.94 Rides.21.108 Money Lenders.21.109 Motion Picture, Television and Radio Producers.21.142 Stevedores.21.167.1 Sales of Firearms and Ammunition.21.168.1 Out of State Sales.21.168.2 Sale for Convenience.21.168.3 Certain Solicitors Deemed Employees.21.168.4 Exemption – Temporary Exhibitors at Tradeshows.21.168.5 Certified Producers Deemed Employees.21.169 Christmas Trees.

21.170 Christmas Tree Lot Clean-up Deposits.21.171 Retailers of New Passenger Motor Vehicles.21.187 Common Carrier Bus.21.188 Contractors.21.190.1 Exemption.21.193 Sale of Real Property.21.194 Transporting Persons for Hire.21.195 Trucking – Hauling21.196 Miscellaneous Trucking.21.199 Sales Tax.

SEC. 21.00. DEFINITIONS.

The following words and phrases whenever used in this article and in Article 1.5 shall be construed as defined in this section, unless from the context adifferent meaning is intended or unless a different meaning is specifically defined and more particularly directed to the use of such words or phrases:

(a) "GROSS RECEIPTS." (Amended by Ord. No. 176,326, Eff. 1/16/05, Oper. 1/1/05.) Except as otherwise specifically provided, the term"gross receipts" as used in this article shall mean the gross receipts of the tax year and shall be calculated on either a cash or accrual basis in accordancewith Internal Revenue Service guidelines. Gross Receipts is defined as follows:

The total amount charged or received for all sales and commissions for the performance of any act, service or employment of whatever nature itmay be, whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not, for which acharge is made or credit allowed, including all receipts, cash, credits and property of any kind or nature, any amount for which credit is allowed bythe seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or servicecosts, interest paid or payable, losses or any other expense whatsoever. Gross receipts shall also include the amount of any federal manufacturers orimporters excise tax included in the price of the property sold, even though the manufacturer or importer is also the retailer thereof and whether ornot the amount of such tax is stated as a separate charge.

The term "GROSS RECEIPTS" as used in this article shall not include the following:

(1) Cash discounts allowed or taken on sales;

(2) Any part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller byway of cash or credit allowances given or taken as part payment on any property so accepted for resale;

(3) The amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or upon the consumer andregardless of whether or not the amount of federal tax is stated to customers as a separate charge, or any California state, City, or city and countysales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

(4) The amount derived from a business activity sold or otherwise transferred to another person during the preceding calendar year;

(5) Any amount received from or charged to any person which is a related entity to the taxpayer. A person is a related entity to a taxpayerif 80% or more of the ownership interests in both value and voting power of said person and the taxpayer are held, directly or indirectly, by the sameperson or persons. Notwithstanding the foregoing, any amount received from or charged to any person which is a related entity to a taxpayer shall beincluded in "gross receipts" when said amount is compensation for activities, including but not limited to, selling, renting and service performed bythe taxpayer for any person which is not a related entity to the taxpayer; and

(6) Any uncollectible amount apportioned to the City of Los Angeles which has been written off as a "bad debt" in compliance with InternalRevenue Service guidelines. Any portion of bad debt subsequently recovered by a taxpayer shall constitute taxable "gross receipts" in the year that itis recovered. The provisions of this exclusion shall apply to any person paying a tax under the provisions of this article.

The term "Tax Year" as used in this article shall mean the calender year unless there is a specific election to use the business's fiscal year. After anelection to use the fiscal year is made, a business may not change its tax measure year from that fiscal year, unless it changes its fiscal year or receives awaiver from the Director of Finance. The measure of tax for a business electing to use its fiscal year shall be attributable to the 12 month period ending onthe last day of its fiscal year, and shall be for the fiscal year ending in the calendar year that would otherwise be the measuring year.

(b) “BUSINESS TAX” shall mean the privilege tax imposed upon persons engaged in the businesses or occupations described in Sections 21.50 to21.198, inclusive, of this article for the privilege of engaging in such businesses or occupations within the City of Los Angeles.

“SALES TAX” shall mean that tax imposed by Section 21.199 of Article 1, Chapter 2 of this Code.

“USE TAX” shall mean that tax imposed by Article 1.5 of Chapter 2 of this Code.

(c) “NEWLY ESTABLISHED BUSINESS” shall mean a business which was not engaged in during the immediately preceding business taxperiod specified for that kind of business. A business to which a valid existing registration certificate is transferred pursuant to the provisions of Sec. 21.11is not a newly established business, and shall be taxed as if the ownership had not changed.

The following shall not be considered newly established businesses:

(1) The business engaged in from a new location whether within or outside the City when the business conducted and taxed at the locationused during the preceding business tax period was discontinued at the same time or prior to commencement of business at the new location;

(2) The business engaged in during the current business tax period is the same kind as that engaged in during the immediately precedingperiod, but not at the close thereof;

(3) The business to be engaged in during the current tax period though not in fact the same kind of business, is taxed under the same sectionas the business engaged in during, but not necessarily throughout the immediate preceding tax period.

Provided that the Director of Finance may, on written application by the taxpayer, and after considering all circumstances, find that a businessdescribed in this paragraph is in fact new and not a continuation of a business engaged in during the immediately preceding business tax period.

(d) “PERSON” shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, jointventure, club, company, joint stock company, business trust, domestic or foreign corporation, association, syndicate, society, or any group of individualsacting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise. (Amended by Ord. No. 174, 272, Eff. 11/26/01.)

(e) “REGISTRATION CERTIFICATE” shall mean Business Tax Registration Certificate.

(f) “STREET” shall include all streets, avenues, highways, alleys, courts, lanes, places, squares, curbing, sidewalks or other public ways in thisCity which have been or may hereafter be dedicated as such and open to public use.

(g) “SALE,” “SELL” shall be deemed to include and refer to: The making of any transfer of title, in any manner or by any means whatsoever, totangible personal property for a price, and the serving, supplying or furnishing, for a price, of any tangible personal property fabricated or made at the specialorder of consumers who do or who do not furnish directly or indirectly the specifications therefor. A transaction whereby the possession of property istransferred but the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall not bedeemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.

(h) “BUSINESS” shall mean any activity, enterprise, profession, trade or undertaking of any nature conducted or engaged in, or ordinarilyconducted or engaged in, with the object of gain, benefit or advantage, whether direct or indirect, to the taxpayer or to another or others. The term shallinclude operations of subsidiary or independent entities conducted for the benefit of others and at no profit to themselves, nonprofit businesses and tradeassociations. A person shall not be deemed to be engaged in business solely by reason of receipt of dividend or interest income from passive investments. (Amended by Ord. No. 174, 272, Eff. 11/26/01.)

(i) “ENGAGED IN BUSINESS” shall mean the conducting, operating, managing or carrying on of a business, whether done as owner, or bymeans of an officer, agent, manager, or employee. A person shall be deemed engaged in business within the City if:

(1) such person or his employee maintains a fixed place of business within the City for the benefit or partial benefit of such person, or

(2) such person or his employee owns or leases real property within the City for business purposes, or

(3) such person or his employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course ofbusiness, or

(4) such person or his employee regularly conducts solicitation of business within the City, or

(5) such person or his employee performs work or renders services in the City on a regular and continuous basis involving not less thanseven working days per year for all such employees, or

(6) such person or his employee utilizes the streets within the City in connection with the operation of motor vehicles for business purposes.

The foregoing specified activities shall not be a limitation on the meaning of engaged in business. (Amended by Ord. No. 174, 272, Eff. 11/26/01.)

(j) (Added by Ord. No. 172,783, Eff. 9/30/99.) “INDEPENDENT CONTRACTOR” shall mean: any entity, other than an individual, thatperforms services for a principal; and any individual who performs services for a principal for a specified recompense for a specified result, under control ofthe principal as to the result of the work only and not as to the means by which such result is accomplished. An independent contractor receives income thatshould be reported to the Internal Revenue Service by the principal on IRS Form 1099, should report the income to the Internal Revenue Service on IRSForm 1040, Schedule C and may deduct the cost of the use of a home for business purposes on said Schedule C. Factors which indicate status as anindependent contractor are if an individual:

(1) is not required to follow instructions on how to perform services;

(2) possesses the skills necessary to perform the task and does not need additional training;

(3) performs services that are not essential to the principal’s business or are not incorporated into the product or services sold by theprincipal;

(4) should be able to subcontract all or a portion of the project;

(5) can hire and supervise his or her own employees, but should not supervise, or be supervised by, the principal’s employees;

(6) generally works on one project and moves on, acquiring additional projects when and if he or she is available;

(7) establishes his or her hours of work, working as necessary to accomplish the end result;

(8) usually has the right to work simultaneously for the principal and others, as long as the end result is achieved;

(9) should be able to choose where to perform some, if not all, of the services;

(10) can control the manner and method of performing the services;

(11) is responsible only for the end result, and is not required to submit interim reports;

(12) generally is paid a flat rate for the completion of the project;

(13) is expected to assume the burden of business expenses;

(14) should have the tools and equipment necessary to perform the services independently;

(15) makes as an investment in tools, business equipment, publications and supplies appropriate for his or her business;

(16) accepts both the benefits and risks of a business transaction, in that he or she has the opportunity to profit from the project price andrisks a loss if the end result is unacceptable or costs exceed the project price;

(17) can and does work for multiple firms simultaneously;

(18) offers his or her services to the general public;

(19) can be terminated only according to the terms of an agreement, and could recover damages for breach of contract if termination isoutside the scope of the agreement; and

(20) has as an obligation to complete the work under contract.

(k) (Added by Ord. No. 172,783, Eff. 9/30/99.) “EMPLOYEE” shall mean any individual who performs services for a principal in a capacityother than as an independent contractor. An employee receives income that should be reported to the Internal Revenue Service by the principal on IRS FormW2, should not report the income to the Internal Revenue Service on IRS Form 1040, Schedule C and may not deduct the cost of the use of a home forbusiness purposes on said Schedule C. Factors which indicate status as an employee are if an individual:

(1) can receive instructions concerning the means and methods of achieving a result;

(2) may receive training from the principal;

(3) provides the services essential to bringing the principal’s product or services to market;

(4) cannot delegate his or her responsibilities;

(5) deals with subcontractors and employees only within the framework of the principal’s directions or policies;

(6) has a continuing relationship with the principal;

(7) must work the hours that are dictated by the principal;

(8) usually must make a time commitment to the principal;

(9) must perform services at the location chosen by the principal;

(10) is subject to the principal’s control over the sequence of tasks;

(11) can be required to submit interim reports;

(12) is usually paid on an hourly or salary basis;

(13) is usually reimbursed for business expenses;

(14) is provided needed tools by the principal;

(15) is not required to invest in the principal’s business;

(16) is paid for his or her time and bears no risk of wage loss if the principal’s product is unprofitable;

(17) can be precluded from some alternative jobs;

(18) does not perform services directly for the public, but only for the principal;

(19) can be discharged at will; and

(20) normally may terminate his or her relationship with the principal without incurring liability.

(l) (Added by Ord. No. 172,820, Eff. 10/28/99, Oper. 1/1/01.) “INDUSTRY CODE” shall mean the industrial classification number assigned toan industry in the North American Industry Classification System (NAICS) by the Executive Office of the President, Office of Management and Budget.

SEC. 21.01. UNLAWFUL BUSINESS NOT AUTHORIZED.

No registration certificate or permit issued under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code, or the payment of any tax required underthe provisions of Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as authorizing the conduct or continuance of any illegal business or of a legalbusiness in an illegal manner.

SEC. 21.02. CONSTITUTIONAL EXEMPTIONS.

Nothing in Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as requiring the payment of any tax for engaging in a business or the doing ofan act when such payment would constitute an unlawful burden upon or an unlawful interference with interstate or foreign commerce, or which payment would bein violation of the Constitution of the United States or the Constitution of the State of California.

SEC. 21.03. IMPOSITION OF TAX.

(a) Subject to the provisions of this Article, a business tax registration certificate must be obtained and a business tax must be paid by every personengaged in any of the businesses or occupations specified in this Article; and a business tax is hereby imposed in the amount prescribed in the applicable section. No person shall engage in any business or occupation subject to tax under the provisions of this Article without obtaining a registration certificate and paying thetax required. (Amended by Ord. No. 181,696, Eff. 6/18/11.)

(b) The business tax registration certificate required to be obtained and the tax required to be paid are hereby declared to be required pursuant to the taxingpower of the City of Los Angeles solely for the purpose of obtaining revenue. Compliance with such requirements shall not be construed to be a condition precedentto engaging in any business or occupation within the City of Los Angeles where the imposition of such a condition precedent would be contrary to law.

(c) Commencing on January 1, 1981 the Director of Finance is directed not to enforce the Business Tax Ordinance against financial corporations for the taxyears beginning January 1, 1981 until directed to do otherwise by the City Council by resolution. (Added by Ord. No. 154,914, Eff. 4/2/81.)

SEC. 21.03.1. AUTOMATIC TAX RATE REDUCTION. (Title and Section Amended by Ord No. 176,324, Eff. 1/16/05, Oper. 1/1/06.)

Commencing with the tax year 2006, the tax rates contained in this Article which are based upon gross receipts shall be reduced by up to 4% per year. Themaximum total rate reduction shall be 15% from the rates imposed as of December 31, 2005. The yearly tax rate reduction shall be calculated by the Director ofFinance on a percentage basis rounded to the nearest one-tenth percent (1/10%) from the net increase in business tax revenue above a baseline. Net business tax

revenue shall be the amount credited as Business Tax in the Statement of Receipts published in the annual Controller's Preliminary Financial Report. The baselineshall be the revenue forecast for business tax receipts prepared in conjunction with the 2004-2005 City budget set forth as follows:

Fiscal Year Revenue Forecast

2004-2005 $384,815,000 2005-2006 $400,977,000 2006-2007 $417,016,000 2007-2008 $433,697,000 2008-2009 $451,045,000 2009-2010 $469,087,000

The baseline revenue forecast for each year beyond the 2009-2010 shall be calculated based upon a 4% per annum increase from the previous year.

There shall be no tax reduction in any year in which the net revenue increase is less than one percent (1%). Any percentage increase below one percent (1%)shall be carried over and added to the next year percentage increase for purposes of calculating the rate reduction for that year.

The Director of Finance shall issue a detailed annual report on the net business tax revenue received each fiscal year and the basis for all calculations andcarryovers and shall publish or otherwise publicize the revised rates for each year.

SEC. 21.04. DUE DATES.

All business taxes shall be paid to the Director of Finance in lawful money of the United States and taxes required hereunder shall be paid in advance exceptwhere otherwise specifically provided, and shall be due and payable at the following times:

(a) Annual business taxes on the first day of January of each year;

(b) Quarterly business taxes on the first days of January, April, July and October of each year;

(c) Monthly business taxes on the first day of each month;

(d) Daily business taxes on each day;

(e) When a business discontinues, dissolves, or otherwise terminates before the expiration of a business tax period, any taxes accrued and owing tothe City under the provisions of this article or Article 1.5, including any business taxes that would not otherwise be payable under the close of the businesstax period during which termination occurs, or until time for paying the tax for the next succeeding business tax period, shall be due on the date oftermination.

(f) When a person first becomes subject to business tax by reason of an amendment of this article, or because of such an amendment, becomessubject to business tax under a section not previously applicable to such person or on a basis not previously applicable to such person, any new or additionaltax required to be paid by reason of this article, as so amended shall be due and payable upon the effective date of the amending ordinance unless anoperative date different from the effective date of the amendment is specified therein. (Added by Ord. No. 128,639, Eff. 11/30/64.)

SEC. 21.05. DELINQUENT DATES – INTEREST – PENALTIES.(Amended by Ord. No. 179,984, Eff. 8/3/08.)

(a) Delinquent Dates: Unless otherwise specifically provided for in other provisions of this article, all business taxes required to be paid shall bedeemed delinquent if not paid on or before or within the time prescribed in this article:

1. Annual Business Taxes – on or before the close of business on the last day of the month following the month in which the tax is due.

2. Quarterly Business Taxes – on or before the close of business on the last day of the month in which the tax is due.

3. Monthly Business Taxes – on or before the close of business on the last day of the month for which the tax is due.

4. Daily Business Taxes – on or before the close of business on each day for which the tax is due.

5. Business Taxes Unpaid When a Business Has Been Discontinued, Dissolved or Otherwise Terminated – within 45 days of thetermination of the business.

6. Deficiency Determinations – within 30 days from the date of notification.

(b) Penalties:

1. Original Delinquency. Any person who fails to pay any tax required to be paid by this article, except deficiency determinations madeby the Director of Finance under Subsection (i) of Section 21.15 of this article, within the time required shall pay a penalty of 5% of the amount ofthe tax in addition to the amount of the tax.

2. Continued Delinquency. Any person who fails to pay any delinquent tax, except deficiency determinations made by the Director ofFinance under Subsection (i) of Section 21.15 of this article, on or before the last day of:

(i) The first month in which the tax first became delinquent, shall pay a second penalty of 5% of the amount of the tax in addition tothe amount of the tax and the 5% penalty first imposed;

(ii) The second month in which the tax first became delinquent, shall pay a third penalty of 5% of the amount of the tax in additionto the amount of the tax and the 10% in accumulated penalties previously imposed;

(iii) The third month in which the tax first became delinquent, shall pay a fourth penalty of 5% of the amount of the tax in additionto the amount of the tax and the 15% in accumulated penalties previously imposed.

(iv) The fourth month in which the tax first became delinquent, shall pay a fifth penalty of 20% of the amount of the tax in additionto the amount of the tax and the 20% in accumulated penalties previously imposed.

3. Deficiency Determinations. Any person who fails to pay a deficiency determination within 30 days after the Director of Finance hasnotified him or her of the amount of the deficiency, shall pay a penalty of 20% of the amount of the deficiency determination in addition to theamount of the deficiency determination. Notice of a deficiency determination shall be given in writing in the manner provided for the service ofnotices of assessment in Subsection (b) of Section 21.16.

4. Overpayment. For the purpose of allowing overpayments as credit against underpayments of the above-mentioned taxes, whenever theoverpayment has been received by the City within the three years prior to an underpayment, or during any year for which the taxpayer, at the requestof the Director of Finance, has executed a waiver of the defense of the statute of limitations with regard to any claim the City may have for businesstax, the Director of Finance, when making determinations of the amount of taxes due the City, shall make an allowance of credit for anyoverpayment. Overpayments shall be applied to underpayments in the oldest period(s) before applying to a later period(s). Whenever anoverpayment has been made prior to an underpayment, no penalty or interest shall apply upon the amount of the underpayment satisfied by the prioroverpayment.

(c) Negligence. If the Director of Finance determines that the nonpayment of any tax due under this article or Article 1.6 is due to negligence orwillful disregard of the provisions of this article or Article 1.6, a penalty of 10% of the amount of the tax shall be added to the tax due in addition to thepenalties stated in Subdivisions 1. and 2. of Subsection (b) of this section. If the Director of Finance determines that any part of the deficiency of adeficiency determination is due to negligence or willful disregard of the provisions of this article or Article 1.6, a penalty of 10% of the amount of thedeficiency determination shall be added in addition to the penalties stated in Subdivision 3. of Subsection (b) of this section.

(d) Fraud. If the Director of Finance determines that the nonpayment of any tax due under this article or Article 1.6 is due to fraud, a penalty of25% of the amount of the tax shall be added, in addition to the penalties stated in Subdivisions 1. and 2. of Subsection (b) of this section. If the Director ofFinance determines that any part of the deficiency determination is due to fraud, a penalty of 25% of the amount of the deficiency determination shall beadded, in addition to the penalties stated in Subdivision 3. of Subsection (b) of this section.

(e) Interest. In addition to the penalties imposed, any person who fails to pay any tax required to be paid by this article or Articles 1.1, 1.3, 1.7, or1.15 of this chapter shall pay interest on the amount of the tax, exclusive of any penalty, from the date on which the tax first became delinquent until thedate it is paid, during each calendar year at the rate per month, or fraction of the month, determined by dividing by 12 the sum of the average Federal short-term rate during the months of July, August and September of the prior calendar year plus three percentage points. Unless the monthly rate is evenlydivisible by one-tenth of a percentage point, it shall be rounded up to the next highest one-tenth of a percentage point. Interest shall run during any period oftime for which the Director of Finance has granted an extension of time. Interest required by any of the provisions of this section shall not be subject towaiver or compromise other than in accordance with the provisions of Subsections (f) and (g) of Section 21.15 of this article, or as the Council may direct.

(f) Penalties and Interest Merge With Tax For Collection Purposes. For collection purposes only, every penalty imposed and the interest thatis accrued under the provisions of this section shall become a part of the tax required to be paid.

SEC. 21.06. SEPARATE REGISTRATION CERTIFICATE REQUIRED FOR EACH LOCATION AND EACH BUSINESS TAX CLASSIFICATION.

(a) Unless otherwise provided in this article, every person who engages in any business within this City which is subject to tax under the provisions of thisarticle shall be deemed to be engaged in a separate business at each branch establishment or location at which he engages in business and must obtain a separateregistration certificate and pay a separate business tax for each classification of business engaged in at each location or branch establishment in the City at which orfrom which the business activities classified and subject to tax under the provisions of this article are carried on. Each registration certificate so obtained and thepayment of the applicable tax for each such classification of business at each such location shall authorize the person named upon the certificate to engage only inthe business specified at the location for which the certificate has been issued; provided that where business is engaged in from one or more locations outside the

City, only one registration certificate for each classification of business need be issued to the person for engaging in that business in the City from all such outsidelocations; provided further, that warehouses and distributing plants located in the City used in connection with and incidental to a business for which a registrationcertificate has been issued to an address located within the City shall not be deemed to be branch establishments or separate locations. (Amended by Ord. No.131,873, Eff. 3/31/66.)

(b) Whenever the business tax for a business imposed under the provisions of this article is measured by the number of vehicles, devices, machines, orother pieces of equipment used, or whenever the business tax is measured by the gross receipts from the operation of coin-operated machines, the Director ofFinance shall issue only one registration certificate; provided that he shall issue for each tax period for which the business tax has been paid, one identifying stickeror symbol for each vehicle, device, machine or other piece of equipment included in the measure of the tax or for each coin-operated machine used in a businesswhere the tax is measured by the gross receipts from such coin-operated machines.

SEC. 21.06.1. SINGLE PRIMARY TAX CLASSIFICATION ELECTION. (Added by Ord. No. 175,385, Eff. 9/14/03, Oper. 1/1/04.)

(a) When a person engages in a business that consists of two or more activities taxable on the basis of annual gross receipts and one of the activitiesgenerates at least 80% of the person’s annual taxable gross receipts, that person may elect on a yearly basis to have all of its taxable annual gross receipts reportedand taxed at the rate applicable to the activity constituting at least 80% of annual taxable receipts.

Any business activities taxed other than on the basis of annual gross receipts shall not be combined with business activities taxed on the basis of annual grossreceipts, and the receipts generated by the activities taxed other than on the basis of annual gross receipts shall continue to be taxed under the existing tax sectionsand shall be excluded in computing the 80% threshold.

The provisions of this section shall only apply to gross receipts generated by business activities conducted at or originating from the same location or asotherwise provided for under Section 21.06. All apportionments shall be made prior to electing the single primary tax classification using the appropriateapportionment formulas for each classification.

(b) Any tax deficiency or delinquency resulting from an election and payment made pursuant to Subsection (a) in which the primary tax category does notmeet the 80% threshold shall accrue interest and penalties as set forth in Section 21.05 of this Article.

SEC. 21.07. REFUNDS OF OVERPAYMENTS. (Amended by Ord. No. 181,051, Eff. 1/31/10.)

No refund of an overpayment of taxes imposed by Article 1 and 1.5 of Chapter 2 of this Code shall be made except under the following procedure

(a) No claim for refund shall be allowed in whole or in part unless filed by the person claiming the overpayment, or his authorized agent on hisbehalf, with the City Clerk within a period of one year from the date of the claimed overpayment, and all such claims for refund of overpayment must befiled with the City Clerk on forms furnished by the City and in the manner prescribed by the City.

(b) Nothing in this section shall be deemed to bring into being or validate any claim for refund arising from a cause heretofore existent if suchclaim, whether filed or not, was or would have been invalid because of the then existing statutory term, and nothing in this section shall be deemed tovalidate, revive, restore or continue any claim for refund heretofore filed and denied.

(c) Insofar as the provisions of this section are in conflict with the provisions of Sections 22.12, 22.13 of this Code, the language of this sectionshall be construed to control and supersede the language of said sections as to any such conflict.

(d) The City shall pay interest on the amount of each allowed claim for refund of overpayment of tax, from the date of filing the claim for refund or,in the case of a payment under protest or pursuant to a billing from the Office of Finance, from the date of overpayment, until the date the overpayment ispaid, during each calendar year at the rate per month determined by dividing by 12 the sum of the average Federal short-term rate during the months of July,August and September of the prior calendar year. Unless the monthly rate is evenly divisible by one-tenth of a percentage point, it shall be rounded up tothe next highest one-tenth of a percentage point.

SEC. 21.08. BUSINESS TAX REGISTRATION CERTIFICATE — FORM.

(a) Each business tax registration certificate shall be prepared and issued by the Director of Finance and shall state upon the face thereof the following:

1. The name of the person to whom issued.

2. The classification of business engaged in and the section of this article in which the business taxed is described.

3. The address of the location from which the business is conducted, and, where it is different, the mailing address of the business taxed; or whereno fixed place of business is maintained, the mailing address of the person to whom the registration certificate has been issued. The mailing address so

appearing shall be the address to which all notices required or authorized in this article shall be sent unless the registrant shall request in writing that anotheraddress be used for such purpose.

4. The period for which the certificate has been issued.

(b) Each business tax registration certificate shall state on the back thereof the following:

This business tax registration certificate signifies that the person named on the face hereof has fulfilled the requirements of Article 1 of Chapter II of theLos Angeles Municipal Code by registering with the Director of Finance for the purpose of paying business tax for the classification of business for whichthis certificate is issued. This certificate does not authorize the person to conduct any unlawful business or to conduct any lawful business in an illegalmanner or to conduct within the City of Los Angeles the business for which this certificate has been issued without strictly complying with all the provisionsof the ordinances of said City, including but not limited to those requiring a permit from any board, commission, department or office of the City. THISBUSINESS TAX REGISTRATION CERTIFICATE DOES NOT CONSTITUTE A PERMIT. Any failure to comply with the requirements of Article 1 orArticle 1.11 of Chapter II of the Los Angeles Municipal Code shall constitute grounds for suspension of this certificate. (Amended by Ord. No. 160,389,Eff. 10/21/85.)

SEC. 21.09. BUSINESS TAX REGISTRATION CERTIFICATES — POSTING AND KEEPING.

(a) Every person engaged in a business subject to tax under the provisions of this article and which business is conducted at or from a fixed place ofbusiness shall keep the registration certificate issued therefor posted in a conspicuous place upon the premises at or from which the business is conducted.

(b) Every person engaged in a business subject to tax under the provisions of this article but not operating from a fixed place of business shall keep theregistration certificate issued therefor upon his person at all times while engaging in the business for which it is issued.

(c) Whenever identifying stickers or symbols have been issued for each vehicle, device, machine, or other piece of equipment included in the measure of abusiness tax, or for each coin-operated machine the gross receipts from which are the measure of the tax, the person to whom such stickers or symbols have beenissued shall keep firmly affixed upon each vehicle, device, machine, piece of equipment or coin-operated machine the identifying sticker or symbol which has beenissued therefor. Such sticker or symbol shall not be removed from any vehicle, device, machine, piece of equipment or coin-operated machine kept in use, duringthe period for which the sticker or symbol is issued.

(d) It shall be a misdemeanor for any person to fail to affix as required herein any identifying sticker or symbol to the vehicle, device, machine, piece ofequipment, or coin-operated machine for which it has been issued, or to give away, sell or transfer such identifying sticker or symbol to another person, or to permitits use by another person.

SEC. 21.10. BUSINESS TAX REGISTRATION CERTIFICATES — CHARGE FOR DUPLICATION.(Amended by Ord. No. 179,984, Eff. 8/3/08.)

Duplicate registration certificates may be issued by the Director of Finance to replace any previously issued certificate, which has been lost or destroyed, uponthe filing of an affidavit by the registrant or an authorized representative attesting to that fact and upon paying to the Director of Finance a fee of $5.00.

SEC. 21.11. BUSINESS TAX REGISTRATION CERTIFICATE —TRANSFER.

No registration certificate shall be transferable except where the business taxed is transferred, whether by sale or otherwise, to another person under suchcircumstances that the real or ultimate ownership of the business after the transfer is substantially similar to the real or ultimate ownership existing before thetransfer. For the purposes of this section, stockholders, bond-holders, partners, or other persons holding an interest in a corporation or other entity herein defined tobe a person are regarded as having the real or ultimate ownership of such corporation or other entity.

SEC. 21.12. BUSINESS TAX REGISTRATION CERTIFICATES —SUSPENSION. (Title and Section Amended by Ord. No. 160,389, Eff. 10/21/85.)

(a) Whenever any person fails to comply with any provision of this article pertaining to business tax or Article 1.11 of this chapter pertaining to payrollexpense tax, or any rule or regulation adopted pursuant thereto, the Director of Finance, upon hearing, after giving such person ten days’ notice in writing specifyingthe time and place of hearing and requiring him to show cause why his registration certificate or certificates should not be suspended, may suspend any one or moreof the registration certificates held by such person. The notice shall be served in the same manner as notices of assessment are served under Section 21.16 of thisarticle.

(b) Any person who engages in any business after the registration certificate issued therefor has been suspended, and before such suspended certificate hasbeen reinstated, shall be guilty of a misdemeanor.

SEC. 21.13. NEWLY ESTABLISHED BUSINESSES – COMPUTATION OF BUSINESS TAX.(Amended by Ord. No. 177,246, Eff. 2/18/06, Oper. 1/1/06.)

(a) Except in cases where this article prescribes a different method to compute and pay the business tax for a newly established business, the business taxshall be obtained and paid in accordance with whichever of the following applies to the classification of newly established business:

1. When the annual business tax is measured by any of the following: gross receipts, gross production costs and gross receipts, gross cost of thework done, or gross receipts and salaries, wages, fees or other compensation paid, the applicant for a business tax registration certificate shall at the time ofmaking application, pay a minimum amount of tax that will apply for the first year of operation. This minimum tax cannot be pro-rated. At the end of thebusiness tax period, the taxpayer shall file a written statement as prescribed in Section 21.14 disclosing all the particulars required for the classification ofthat business. At the time of renewal, the taxpayer shall pay the actual tax owed for the first year of operation deducting any minimum tax previously paidfor that year. This additional tax is computed at the current rate specified for the classification of that particular business. This tax is then measured andpaid in the manner prescribed in Section 21.14. In all cases, the business tax shall be determined and paid in all business tax periods subsequent to the firstbusiness tax periods in the manner prescribed in Section 21.14.

2. When the annual business tax is measured by any of the following: the number of vehicles, machines, devices or articles of equipment used, thenumber of persons employed, square foot area, seating capacity, the scale of fees or other charges collected, the applicant for a business tax registrationcertificate shall file with the Director of Finance, a statement setting forth the applicable factors in use, expected to be in use, employed, or collected. Thetaxpayer is required to pay the business tax at the time of making the application when the business is started. The required application and the tax paymentis due as follows: when the business tax period is daily, tax is due on or before the close of business on the day on which the business was started; when thebusiness tax period is monthly or quarterly, the tax is due on or before the last day of the month in which the business was started; when the business taxperiod is annual, the tax is due on or before the last day of the month following the month in which the business was started. After the start of the business,the factor by which the tax is measured is increased in the first business tax period, an additional amount of tax becomes due, and this increase shall bereported and the additional amount of business tax paid in accordance with the provisions of Section 21.14. Business taxes in these cases for subsequentbusiness tax periods shall be paid in accordance with the provisions of Section 21.14.

3. (i) When the provisions of this article impose a flat rate tax for a business tax period or a fractional part of a period, the applicant of abusiness tax registration certificate for a newly established business shall pay the business tax required at the time the application is made, without prorationfor any portion of the business tax period expired at the time the business started.

(ii) When the provisions of this article impose a flat rate tax for a business tax period without the requirement that the full amount of the taxbe paid for the business tax period or any fractional part of the period, the applicant for a business tax registration certificate for a newly establishedbusiness shall, at the time the application is made, pay the business tax required to be paid prorated for the even monthly portion of the business taxperiod, which is unexpired at the time the business is started.

(b) Except as otherwise provided in the foregoing cases, application by a newly established business for a business tax registration certificate and paymentof the required business tax shall be made as follows: whenever the business tax period is daily, on or before the close of business on the day on which the businessis started; whenever the business tax period is monthly or quarterly, on or before the last day of the month in which the business is started; whenever the businesstax period is annual, on or before the last day of the month following the month in which the business started. In these cases, the business tax for subsequentbusiness tax periods shall be paid when due and prior to the delinquency date provided in Section 21.05.

SEC. 21.14. WRITTEN STATEMENTS – WHEN REQUIRED – COMPUTATION OF THE TAX.

(a) Except where a provision of this article specifically provides a different method for the filing of a statement and payment of the business tax for adesignated classification of business, statements required hereunder shall be filed and payment of the tax made in the following manner:

1. Whenever an annual business tax is measured by gross receipts, gross cost of production and gross receipts, gross cost of the work done, orgross receipts and salaries, wages, fees or other compensation paid, the person subject to the business tax shall, before the tax becomes delinquent, file withthe Director of Finance a written statement setting forth whichever of the following is applicable to the classification of business being engaged in: The grossreceipts of the preceding year; the gross cost of production and gross receipts of the preceding year; the gross cost of the work done in the preceding year; orgross receipts and salaries, wages, fees or other compensation paid in the preceding year; and such person shall pay at such time the amount of the businesstax computed upon the measure of the tax reported in the statement.

2. Whenever a quarterly business tax is imposed upon the number of oil wells operated and the number of barrels of oil produced, the personsubject to the tax shall, before the business tax for each quarter becomes delinquent, file with the Director of Finance a written statement setting forth thenumber of wells in operation and the number of barrels of oil produced by each well in the preceding calendar quarter and such person shall pay at such timethe amount of the business tax computed upon the measure of the tax reported in the statement.

3. Whenever the business tax is measured by the number of vehicles, machines, devices, tables, articles of equipment used or persons employed, orwhenever the business tax is measured by square foot area, seating capacity, the scale of fees or other charges collected, the person subject to the tax shallbefore the tax becomes delinquent file with the Director of Finance a written statement setting forth the then applicable factor or factors that constitute themeasure of the tax and shall pay at such time the amount of the business tax computed thereon. In each case where the factor by which the tax is measured isincreased during the business tax period and an additional amount of business tax becomes due, the person subject to the tax shall notify the Director of

Finance and pay the additional tax due in the following manner: When the business tax period is daily, on the day the increase occurs; when the business taxperiod is monthly or quarterly, within 30 days of the date on which the increase occurred; when the business tax period is annual, on or before the last day ofthe month following the month in which the increase occurred.

(b) The written statements shall be made upon forms prescribed by the Director of Finance and shall include a declaration substantially as follows:

“I declare, under penalty of making a false declaration, that I am authorized to make this statement, and that to the best of my knowledge and belief itis a true, correct and complete statement made in good faith for the period stated, in compliance with the provisions of the Los Angeles Municipal Code.”

(c) Such statements shall not be conclusive against the City as to the information set forth therein, nor shall the filing of a statement preclude the City fromcollecting by appropriate action any additional tax that is later determined to be due and payable under the provisions of this article.

(d) The Director of Finance and all of his or her deputies shall have the power and authority to require the person subject to the tax to provide any otherinformation including a list of subcontractors, vendors and tenants that will help enforce the business tax. The operative date of this [sub]section will be January 1,2005. (Added by Ord. No. 177,216, Eff. 2/8/06.)

SEC. 21.15. DIRECTOR OF FINANCE – DUTY TO ENFORCE – POWERS – RULES AND REGULATIONS.

(a) Duty to Enforce. It shall be the duty of the Director of Finance, and he is hereby directed, to enforce each and all of the provisions of this article andArticle 1.5, and the Chief of Police shall render such assistance in the enforcement of this article and Article 1.5 as may from time to time be required by theDirector of Finance.

(b) Inspection and Examination of Places of Business. The Director of Finance in the exercise of the duties imposed upon him, and acting through hisdeputies, shall inspect and examine all places of business in the City to ascertain whether or not the provisions of this article and Article 1.5 have been compliedwith.

(c) Audit and Examination of Records and Equipment. The Director of Finance and the City Controller, and deputies of each of them, shall have thepower to audit and examine all books and records, and, where necessary, all equipment, of any person engaged in business in the City for the purpose ofascertaining the amount of business tax, sales or use tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying the statements, or anyitem thereof, when filed by any taxpayer pursuant to the provisions of Secs. 21.13, 21.14 or 21.199, or Article 1.5. If such person, after written demand by theDirector of Finance or City Controller, or a deputy of either, refuses to make available for audit, examination or verification such books, records or equipment as theDirector of Finance, City Controller, or deputy of either, requests, the Director of Finance may, after full consideration of all information within his knowledgeconcerning the business and activities of the person so refusing, make an assessment in the manner provided in Sec. 21.16 of any taxes estimated to be due.

(d) Inspection of Registration Certificates, etc. The Director of Finance and all of his deputies shall have the power and authority to enter, free ofcharge, during business hours, any place of business required to be registered and taxed by the provisions of this article or Article 1.5, and to demand exhibition of abusiness registration certificate and sales or use tax permit and evidence of amount of tax paid. Any person having any such business tax registration certificate, orsales or use tax permit, heretofore issued in his possession or under his control who fails to exhibit the same as well as evidence of amounts of tax paid on demandshall be guilty of a misdemeanor and subject to the penalty provided for by the provisions of this Code.

(e) Extensions of Time for Filing. The Director of Finance may upon receipt of the written request of a taxpayer, and for good cause, extend the time forfiling any statement required under the provisions of Section 21.13, 21.14 or 21.199, or Article 1.5 for a period of not to exceed 45 days, provided that the time forfiling the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension if90% or more of the total tax due is paid prior to the tax becoming delinquent. If less than 90% of the total tax due is paid prior to the tax becoming delinquent, atwenty percent (20%) penalty on any unpaid principal tax balance shall accrue. Interest shall accrue during said extension in the manner provided herein. (Amended by Ord. No. 176,160, Eff. 9/25/04.)

(f) Compromise of Claims. The Director of Finance, subject to the provisions of the Charter, may compromise a claim for business tax where the portionof the claim proposed to be released is equal to or less than the monetary limitations set forth in Section 22.13, as adjusted by the Controller in accordance withSubsection (e) of that section. Compromise of claims in excess of $15,000.00, requires the written approval of the City Attorney. The Director of Finance is furtherauthorized to enter into releases of the approved compromises subject to the approval of the City Attorney. (Amended by Ord. No. 179,984, Eff. 8/3/08.)

(g) Minor Error in Payment. In the event a discrepancy exists between the amount of tax paid and the amount of tax due under this Article or Article1.6, resulting in the underpayment or overpayment of the tax in an amount of $30.00 or less, the Director of Finance may accept and record the underpayment oroverpayment without other notification to the taxpayer. (Amended by Ord. No. 181,860, Eff. 9/29/11.)

(h) Rules and Regulations – Apportionment. The Director of Finance may make such rules and regulations as are not inconsistent with the provisions ofthis article or Article 1.5 as may be necessary or desirable to aid in the enforcement of the provisions of this article and Article 1.5. When, by reason of theprovisions of the Constitution of the United States or the Constitution of California, the business tax imposed by this article cannot be enforced without there beingan apportionment according to the amount of business done in the City of Los Angeles, or in the State of California, as the case may be, the Director of Finance maymake such rules and regulations for the apportionment of the tax as are necessary or desirable to overcome the constitutional objections. Such rules and regulationsshall be approved by the City Attorney prior to becoming effective.

(i) Deficiency Determinations. If the Director of Finance is not satisfied that any statement filed as required under the provisions of this article or Article1.5 of Chapter 2 of this Code is correct, or that the amount of tax is correctly computed, he may compute and determine the amount to be paid and make adeficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his possession or that may come into hispossession. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in abusiness, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or nota deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to theperson concerned in the same manner as notices of assessment are given under Sec. 21.16.

(j) Payments, etc., Made by Mail. Whenever any payment, statement, report, request or other communication received by the Director of Finance isreceived after the time prescribed by this article or Article 1.5 for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed prior tothe time prescribed in this article or Article 1.5 for the receipt thereof, or whenever the Director of Finance is furnished substantial proof that the payment,statement, report, or request for other communication was in fact deposited in the United States mail prior to the time prescribed for receipt thereof, the Director ofFinance may regard such payment, statement, report, request or other communication as having been timely received.

(k) Earthquake Related Extension. Upon the receipt on or before August 31, 1994 of the written request of a taxpayer showing that such taxpayer’sbusiness has been impacted by the earthquake of January 17, 1994 to the extent of preventing the filing of any statement required under the provisions of Sections21.13 or 21.14 or Article 1.11 of this Code or the payment of any tax required in connection therewith for such business prior to the delinquency date, the Directorof Finance shall extend the delinquency date for filing any such statement and paying any such tax for such business to September 1, 1994. No penalty or interestshall accrue prior to September 1, 1994 by virtue of such extension of the delinquency date. The relief provided in this subsection shall be an alternative to therelief provided in Subsection (e) of this section and not in addition thereto, and shall be applicable only to annual taxes due in 1994. (Amended by Ord. No.169,853, Eff. 7/4/94, Oper. 2/28/94.)

(l) Requirement of Payments by Electronic Funds Transfer. All tax payments in the amount of fifty thousand dollars ($50,000) or more shall be paidvia a financial institution's electronic funds transfer. (Added by Ord. No. 176,160, Eff. 9/25/04.)

(m) Credit Card Transaction Fee for On-line Payment. Every person who files their renewal online and pays their business tax with a credit card shallpay a transaction fee in the amount of $3.00. The purpose of this fee is to offset a portion of the administrative costs incurred by the City for those transactions. (Added by Ord. No. 180,358, Eff. 12/20/08.)

(n) Public Disclosure of Tax Delinquencies. (Added by Ord. No. 180,378, Eff. 1/4/09.)

(i) Notwithstanding any other provision of law, the Director of the Office of Finance shall make available as a matter of public record each calendarquarter a list of the largest 250 tax delinquencies in excess of one hundred thousand dollars ($100,000.00) under this part. For purposes of compiling the list,a "tax delinquency" means an amount owed to the City of Los Angeles as to which all of the following apply:

(A) That has been submitted to the Director of Finance for a finding that the delinquent tax is unpaid and the administrative process hasbeen completed pursuant to Los Angeles Municipal Code Section 21.16.

(B) The amount of tax has been delinquent for more than ninety (90) days.

(C) For purposes of the list, a tax delinquency does not include any delinquency that would be uncollectible by operation of law.

(ii) Each quarterly list shall include all of the following with respect to each delinquency:

(A) The name of the person or persons liable for payment of the tax and the person's or persons' last known business address.

(B) The amount of tax delinquency as shown on the notice or notices of the tax delinquency and any applicable interest or penalties, less anyamounts paid.

(C) The type of tax that is delinquent.

(iii) Prior to making a tax delinquency a matter of public record as required by this section, the Director of Finance shall provide a preliminarywritten notice to the person or persons liable for the tax by certified mail, return receipt requested, demanding payment of the amount owed and informingthe person or persons that nonpayment may result in the tax delinquency being made a matter of public record. If within 30 days after issuance of the notice,the person or persons do not remit the amount due or make arrangements with the Director of Finance for payment of the amount due, the tax delinquencyshall be included on the list.

(iv) The quarterly list described in subsection (n)(i) shall include the telephone number and address of the Office of Finance in order to provide apoint of contact if a person believes the placement of his or her name on the list is in error.

(v) A person whose delinquency appears on the quarterly list, and who satisfies that delinquency in whole or in part, may request the Director ofFinance to include in the quarterly list any payments that person made to satisfy the delinquency. Upon receipt of that request, the Director of Finance mayinclude those payments on the list as promptly as feasible.

(o) Liens for Unpaid Taxes. (Added by Ord. No. 181,238, Eff. 9/12/10.)

(i) The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city. If the tax is not paid when due, suchtax, penalty and interest shall be a lien against the taxpayer's property for the amount thereof, which lien shall continue until the amount thereof including allpenalties and interest are paid, or until it is discharged of record.

(ii) The Director of Finance may record liens against property to collect unpaid taxes, interest, and penalties upon the exhaustion of theadministrative process to determine the amount of such liabilities under this Chapter. Such liens may be recorded against real property used in connectionwith activities that generated the tax liability or against personal property used in connection with activities that generated the tax liability. Such liens shallbe recorded according to applicable law in the jurisdiction in which the property is located.

(iii) Prior to recording a lien for unpaid taxes, interest, and penalties, the Director of Finance shall provide a report requesting approval of the lien tothe City Council, with the taxpayer's name, amount of tax, interest, and penalties owed, and the tax periods for which taxes will be collected. The reportshall be referred by the City Clerk to the full City Council without referral to any Council Committee, and duly placed upon the agenda of the City Council. No request for approval of a lien shall be made to the City Council unless the City Attorney has determined that a sufficient basis exists to support theliability and that assets exist to which the liability could attach. The Director of Finance shall provide at least 15 days notice of the hearing before the CityCouncil to the taxpayer by mailing a copy of the report to the address contained in the most recent records of the Office of Finance. Notice shall be deemedcomplete at the time of deposit in the United States mail. (Amended by Ord. No. 182,111, Eff. 5/29/12.)

(iv) Upon a majority vote by the City Council to approve the recordation of lien(s), the Director of Finance or his designee may record in the properoffice a certificate which specifies the amount of tax, interest and penalties due, the name and last known address of the person liable for the same, astatement that the Director of Finance has determined the correct amount to be paid and a legal description of the property owned by the taxpayer to whichthe lien applies. From the time of the recording of the certificate, the amount required to be paid together with interest and penalties constitutes a lien uponall property to which the lien can attach and to property owned by the taxpayer used in connection with activities subject to taxation under this Chapter. Thelien has the force, effect and priority of a state tax lien and shall continue for ten (10) years from the filing of the certificate unless sooner released orotherwise discharged, or unless a term is otherwise provided by applicable law.

SEC. 21.16. ASSESSMENT — ADMINISTRATIVE REMEDY. (Amended by Ord. No. 138,968, Eff. 8/9/69.)

(a) Assessment of taxes. Whenever the Director of Finance determines that any tax is due or may be due to the City of Los Angeles under the provisionsof this chapter, he may make and give notice of an assessment of such tax.

The notice of assessment shall separately set forth the amount of any tax known by the Director of Finance to be due or estimated by the Director of Finance,after full consideration of all information within his knowledge concerning the business and activities of the person assessed, to be due under each applicablesection of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

(b) Service of assessment; right to hearing. The notice of assessment shall be served upon the person either by handing it to him personally, or by adeposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business appearing on the faceof the registration certificate issued to him or to such other address as he shall register with the Director of Finance for the purpose of receiving notices providedunder this chapter; should the person have no registration certificate issued to him and should he have no address registered with the Director of Finance for suchpurpose, then to such person’s last known address. For the purpose of this section, a service by mail is complete at the time of deposit in the United States mail.Within 15 days after the date of service, the person assessed may either apply in writing to the Director of Finance for a hearing on the assessment or may file awritten request that such hearing be waived. If the person neither requests a hearing upon the assessment nor requests a waiver of hearing within the prescribed time,the amount of the assessment shall be final and the amount thereof shall immediately be due and owing to the City of Los Angeles, but penalties and interest asprovided by this chapter shall continue to accrue until paid.

(c) Waiver of hearing. If the person requests that the hearing be waived, the Director of Finance may either grant such request and notify the personthereof in writing or may, in his discretion, deny the request and set the assessment for hearing at the time and in the manner prescribed by Subsection (d) hereof. Ifthe Director of Finance grants the request for waiver of hearing, the administrative proceedings prescribed by this section shall be deemed exhausted and the Cityshall have the right to bring an action in any court of competent jurisdiction to collect the amount of the assessment, plus such penalties and interest as may haveaccrued thereon as provided by this chapter.

(d) Time of hearing; notice. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) If the person requests a hearing upon the assessment or if the Director ofFinance denies the person’s request for waiver of hearing, the Director of Finance shall cause the matter to be set for hearing before an Assessment Review Officernot later than 90 days after the date of the application, or, as the case may be, the date of the Director of Finance’s denial of the waiver of hearing. A request forhearing shall be accompanied by a written statement of the basis or bases for the request. Notice of the time and place of the hearing shall be mailed by the Directorof Finance to the person assessed not later than 15 days before the date set for hearing and, if the Director of Finance desires said person to produce specific recordsat such hearing, such notice may designate the records requested to be produced.

(e) Administrative hearing. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) The hearing prescribed by this section shall be before an AssessmentReview Officer. The Assessment Review Officer shall be appointed by the Director of Finance and shall be an employee of the Office of Finance. At the hearing,the person assessed and the representative of the Director of Finance, who shall be a person other than the Assessment Review Officer, may submit such evidence

as they believe to be relevant to their respective positions. The Assessment Review Officer may require the presentation of additional evidence from either theperson assessed or the representative of the Director of Finance, or from both, and may continue the hearing from time to time for the purpose of allowing thepresentation of additional evidence.

(f) Decision of Assessment Review Officer. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) Upon completion of the hearing, the Assessment ReviewOfficer may (i) affirm the assessment, (ii) increase the assessment, or (iii) decrease the assessment, as the evidence may require; but the amount of the assessmentshall not be increased unless the claim for the increase is asserted on behalf of the City either before or during the hearing. Written notice of the decision of theAssessment Review Officer shall be given to the person assessed in the same form and in the same manner as the notice of assessment.

(g) Optional Office of Finance Appeals. (Amended by Ord. No. 177,019, Eff. 11/14/05.) The Office of Finance may, at its discretion, establish one ormore advisory bodies, which may be composed of City staff and members of the public, including members of the business community, to hear appeals fromdecisions of the Assessment Review Officer. If the Office of Finance does establish one or more boards and the person assessed does not appeal, he or she shallnevertheless be deemed to have exhausted the administrative proceedings provided by this section.

(h) Hearing Before Board of Review. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) At the hearing before the Board of Review, the appellant and therepresentative of the Director of Finance, who shall be a person other than a member of the Board of Review, may submit such evidence and argument as theybelieve to be relevant to their respective positions. The Board of Review may require the presentation of additional evidence or argument, or both, from either theappellant or the representative of the Director of Finance, or from both, and may continue the hearing from time to time for the purpose of allowing the presentationof additional evidence or argument, or both.

(i) Decision of Board of Review. (Amended by Ord. No. 174,084*, Eff. 8/19/01.) Upon completion of the hearing, the Board of Review may, bymajority vote of its members, affirm or decrease the assessment, as the evidence may require. Written notice of the decision of the Board of Review shall be givento the appellant in the same form and in the same manner as the notice of assessment.

(j) Effect of Delay in Administrative Proceedings. (Added by Ord. No. 174,084*, Eff. 8/19/01.) Failure of the Director of Finance to set any hearingwithin the time prescribed in this section shall not affect the validity of any proceedings taken hereunder.

(k) Effect of Payment of an Assessment. (Added by Ord. No. 174,084*, Eff. 8/19/01.) Acceptance of any payment upon an assessment, the validity ofwhich has not previously been passed upon by the Assessment Review Officer, shall not preclude the Director of Finance from subsequently levying anotherassessment in any case where the original assessment does not truly reflect the correct tax liability.

* The provisions of this Ordinance shall become operative with respect to assessments of tax levied by the Director of Finance under Los Angeles Municipal Code Section 21.16 on andafter January 1, 2002.

SEC. 21.17. CONFIDENTIAL CHARACTER OF INFORMATION OBTAINED – DISCLOSURE UNLAWFUL. (Amended by Ord. No. 180,380, Eff. 1/5/09.)

(a) It shall be unlawful for the Director of Finance or any person having an administrative duty under the provisions of this Article or Article 1.6 to makeknown in any manner whatever the business affairs and operations of, or the nature, amount or source of income, profits, losses, expenditures, net worth, or anyparticular thereof, or any other information set forth in any statement or return or obtained by an investigation of records and equipment of, any person required toobtain a business tax registration certificate or sales or use tax permit, or pay business, sales or use tax or any other person visited or examined in the discharge ofofficial duty, or to permit any statement or return, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person.

(b) Nothing in this section shall be construed to prevent:

1. the disclosure of information to, or the examination of records and equipment by, another City official or employee or a member of the Board ofReview for the sole purpose of administering or enforcing any provision of this article or Article 1.6;

2. the disclosure of information to, or the examination of records by federal or state officials, or the tax officials of another city or county, or cityand county, if a reciprocal arrangement exists; or to a grand jury;

3. the disclosure of information and results of examination of records of a particular taxpayer, or relating to a particular taxpayer, with respect toany proceeding in a court of law or before an administrative body in which the existence or amount of any business, sales or use tax liability of the particulartaxpayer to the City of Los Angeles is relevant and material and the particular taxpayer is a party to the proceeding, including but not limited to proceedingsbefore any Board or Commission as set forth in Municipal Code section 22.02;

4. the disclosure after the filing of a written request to that effect, to the taxpayer himself, or to his successors, receivers, trustees, executors,administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax oramounts of tax required to be collected, interest and penalties; further provided, however, that the City Attorney approves each such disclosure and that theDirector of Finance may refuse to make any disclosure referred to in this paragraph when in his opinion the public interest would suffer thereby;

5. the disclosure of the names and addresses of persons to whom registration certificates or sales tax and use tax permits have been issued;

6. the disclosure of such information as may be necessary to the City Council in order to permit it to be fully advised as to the facts when ataxpayer files a claim for refund of business, sales or use taxes, or submits an offer of compromise with regard to a claim for refund of business, sales or usetaxes, or submits an offer of compromise with regard to a claim asserted against him by the City for business, sales or use taxes, or where the existence oramount of business, sales, or use taxes are otherwise relevant to the determination of a matter required to be submitted to the City Council under the City ofLos Angeles Charter, the Los Angeles Municipal Code, or the Los Angeles Administrative Code;

7. the disclosure of information to, or the examination of records by, contractors or employees of contractors with whom the City of Los Angeleshas contracted to assist the City of Los Angeles for the sole purpose of administering or enforcing any provision of this Article or Article 1.6, if the contractrequires the persons granted access to such information or records to abide by the confidentiality requirements of this Section, and if the City Council hasapproved the award and execution of such contract;

8. the disclosure of information to, or the examination of records by, purchasers of accounts receivable pursuant to Los Angeles AdministrativeCode section 5.186, or the disclosure to any employees of such purchasers of accounts receivable, if the purchase agreement requires the persons grantedaccess to such information or records to abide by the confidentiality requirements of this Section;

9. the disclosure of the identity of any particular taxpayer with delinquent business, sales, or use taxes and the type and amount of the delinquentbusiness, sales, or use tax liability of that taxpayer, and the publication of such information at the discretion of the Office of Finance pursuant to Los AngelesMunicipal Code section 21.15(m);

10. the disclosure of information when compelled by an order of court or other judicial process; and

11. the disclosure of statistical or cumulative information when the disclosure does not identify any particular taxpayer or reveal information in amanner that could identify a particular taxpayer.

SEC. 21.18. DELINQUENT TAXES – INSTALLMENT PAYMENT.

(a) No registration certificate shall be issued, nor shall a suspended certificate be reinstated, to any person who, at the time of applying therefor, is indebtedto the City of Los Angeles for any delinquent business, sales or use taxes, unless such person, with the consent of the Director of Finance, enters into an agreementwith the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a period of not toexceed one year. (Amended by Ord. No. 160,389, Eff. 10/21/85.)

(b) Persons indebted to the City of Los Angeles for delinquent business, sales or use taxes may, with the consent of the Director of Finance enter into anagreement with the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a periodof not to exceed one year.

(c) In any agreement so entered into, the person shall acknowledge the obligation owed to the City and agree that in the event of failure to make timelypayment of any installment, the whole amount unpaid, together with accrued interest, shall become immediately due and payable; and that in the event legal actionis brought by the City to enforce collection of any amount included in the agreement, the person will pay all costs of suit incurred by the City of Los Angeles,including a reasonable attorney’s fee. The execution of such a contract shall not prevent the accrual of interest on unpaid balances at the rate provided in Sec. 21.05.No penalties shall accrue on account of delinquency for taxes owed during the period covered by the contract after the execution of the contract and the payment ofthe first installment.

SEC. 21.19. DELINQUENT TAXES – SUIT FOR RECOVERY. (Amended by Ord. No. 180,358, Eff. 12/20/08.)

(a) Any tax required to be paid under the provisions of this article, shall be deemed a debt owed to the City. Any person engaging in a business requiredto obtain a registration certificate and pay a business tax who fails to obtain such certificate shall be liable from the date they became subject to the tax, but in noevent shall such person be liable for a period greater than eight (8) years. Any person owing any tax under the provision of this article shall be liable in an actionbrought in the name of the City of Los Angeles in any court of competent jurisdiction for recovery of any such amount.

(b) An action to collect the business tax and any related penalty and interest must be commenced within three years of the date the business tax becomesdelinquent. The statute of limitations on an action by the City to collect unpaid taxes is tolled while the City is unaware of the existence or ongoing activities of abusiness due to the taxpayer's failure to obtain a registration certificate and pay a business tax. The statute of limitations is also tolled while an administrativeappeal is pending.

SEC. 21.20. DELINQUENT TAXES – DEBT NOT DISCHARGED BY PENAL CONVICTION.

The conviction of any person for engaging in business without obtaining a registration certificate, or for failure to pay any tax due under or otherwise complywith the provisions of this article or Article 1.5, shall not relieve the person from the obligation to pay any taxes that he may owe the City, nor shall the payment ofany taxes owed prevent a prosecution under appropriate provisions of the Municipal Code for any violation of the provisions of this article or Article 1.5. Theremedies provided in this Code are cumulative. The use of one or more of the remedies prescribed in this article shall not bar the use of any other remedy provided

for the enforcement of the provisions of this article or Article 1.5.

SEC. 21.21. DELINQUENT TAXES – UNCOLLECTIBLE. (Amended by Ord. No. 141,263, Eff. 12/21/70.)

If the Director of Finance finds that any amount of tax due or believed to be due under the provisions of this article or Article 1.5 cannot be collected, or thatefforts to collect any such amount would be disproportionately costly with relation to the probable outcome of the collecting efforts, he may prepare a report settingforth his finding and the reasons therefor, and submit it to a Board of Review constituted as provided in Sec. 21.16 of this Code. Upon unanimous approval of afinding by the Board of Review, the Director of Finance may remove from his active accounts receivable any unpaid tax owing or believed to be owing. If theBoard of Review does not unanimously approve the finding, the matter shall be returned to the Director of Finance. The removal from the active accounts receivableof the Director of Finance of any unpaid tax as provided herein shall not preclude the City from collecting or attempting to collect any such tax that later proves tobe collectible.

SEC. 21.22. RELIGIOUS, CHARITY, ETC.; PROCEDURE FOR ISSUANCE OF TAX EXEMPT REGISTRATION CERTIFICATES. (Amended by Ord. No. 149,522, Eff. 5/23/77.)

(a) The provisions of this article shall not be construed to require the payment of any business tax to operate or carry on the functions of any charitable orreligious institution, organization or association organized for charitable or religious purposes and conducted solely for such purposes, nor the payment of anybusiness tax to engage in teaching, preaching or otherwise disseminating any religious tenets or the beliefs of any religion; nor shall any business tax be required tobe paid by any religious or other charitable association, including fraternal, educational, civic, military, state, county and municipal organizations and associations,for the conducting or staging of any theatrical, art, or sporting exhibition or similar event, or any dance, concert, or lecture, when the net proceeds derived from anyof the same are not used for the purpose of private gain to any individual but are used wholly for the benefit of such organization or for charitable or benevolentpurposes, nor shall a business tax be required to be paid by any credit union corporation. Such persons are entitled to receive tax exempt registration certificatesupon application for and qualification as provided in this section.

(b) An independent contractor who for profit or gain undertakes to carry on any business or activity, for the conduct or operation of which a registrationcertificate and business tax is required by any section of this article, shall not be exempted from the registration and tax requirements of this Article because of thefact that he has paid or agreed to pay or turn over to any charitable institution or organization a portion of the receipts of the business or activity as a reward orrecompense for the sponsorship of the business or activity, or for any other reason, and such a contractor shall not be deemed to be acting for purposes entitling himto a tax exempt registration certificate.

(c) 1. The Director of Finance shall, upon application, issue a tax exempt registration certificate to any credit union corporation upon beingfurnished with satisfactory evidence of its incorporation and operation as such.

2. Any applicant for a tax exempt registration certificate authorized in Subsection (a), other than a credit union corporation, shall make anapplication upon a form furnished by the Director of Finance. The application shall be forwarded to the Board of Police Commissioners which shall make orcause to be made such investigation of the applicant and the activity carried on or proposed to be carried on as may be necessary to determine whether or notthe applicant and the activity for which a tax exempt registration certificate is applied for meet the requirements of Subsection (a) hereof, and that theproceeds of the activity, if any, are to be used for the purposes mentioned therein. The Board of Police Commissioners shall endorse its finding upon theapplication and return the same to the Director of Finance. If the finding is to the effect that the requirements of Subsection (a) are met, the Director ofFinance shall then issue a tax exempt registration certificate provided the applicant has complied with all other applicable provisions of this Code; providedfurther, however, that when the activity to be engaged in is of the kind for which the applicant must file a Notice of Intention as provided in Article 4 ofChapter 4 of this Code, no tax exempt registration certificate shall be issued until such Notice of Intention has been filed and an Information Card issued tothe applicant as provided in said Article 4. The registration certificate so issued shall show on its face that it is tax exempt. If the finding of the Board ofPolice Commissioners is that the requirements of Subsection (a) hereof are not met, no registration certificate shall be issued without payment of the taxprescribed in the appropriate section of this article. (Amended by Ord. No. 173,283, Eff. 6/26/00, Oper. 7/1/00.)

(d) If at any time any activity listed in Subsection (a) as being entitled to the issuance of a tax exempt registration certificate is conducted in such a mannerthat, had it been disclosed in the application described in Subsection (c), would not have entitled the person carrying on the activity to a tax exempt registrationcertificate, or if the net proceeds derived from those activities named in Subsection (a) are not used for a purpose approved therein, any tax exempt registrationcertificate therefore issued shall be void and the full amount of the tax shall be due and payable.

(e) Subject to the provisions of Subsection (d) hereof, upon the Director of Finance’s issuance of a tax exempt registration certificate to a person, any tax,including any penalty or interest accrued thereon, owing by such person pursuant to any provision of this article for any period prior to such issuance by virtue ofcarrying on any activity described in Subsection (a) hereof in the manner prescribed therein which would have entitled such person to receive a tax exemptregistration certificate shall be canceled as if it had never become due or owing, and, if paid, a refund thereof shall be made, subject to the provisions of Section21.07 of this Code, as if it had been overpaid. (Added by Ord. No. 149,522, Eff. 5/23/77.)

SEC. 21.23. EFFECT OF REPEALS AND AMENDMENTS.

Except where a repealing or amendatory ordinance specifically provides otherwise, the amendment or repeal of any portion of Article 1 or Article 1.5 shall not

be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City of Los Angeles from any person under theprovisions of said articles as they existed prior to such amendment or repeal. The rule of construction required by this section is declared to be in clarification andconfirmation of the existing intent of said articles, and is not to be construed as applying solely to the effect of repealing or amendatory ordinances adoptedsubsequent to the effective date of this section.

SEC. 21.24. EXEMPTION FOR PERSONS HAVING EQUAL OR GREATER PAYROLL EXPENSE TAX LIABILITY. (Repealed by Ord. No. 174, 272, Eff. 11/26/01.)

SEC. 21.25. RELIEF FOR EARTHQUAKE INTERRUPTION. (Added by Ord. No. 169,977, Eff. 9/3/94.)

(a) Any taxpayer whose business at any location was interrupted for a period of not less than sixty (60) consecutive days as a result of the earthquake ofJanuary 17, 1994, upon written application and proof of such interruption to the reasonable satisfaction of the Director of Finance, shall be deemed to haveterminated said business at said location on December 31, 1993.

(b) Upon resumption of any business described in Subsection (a) of this section, if the business tax is an annual tax measured by gross receipts, grossproduction costs and gross receipts, gross cost of the work done, or gross receipts and salaries, wages, fees or other compensation paid, said business shall bedeemed to be a newly established business subject to taxation in accordance with the provisions of Section 21.13(a)1 of this article, except that the measure of anyadditional tax for 1994 shall not commence prior to the date of resumption of said business.

(c) Upon resumption of any business described in Subsection (a) of this section, if the business tax is a flat rate for a year or a fractional part thereof, saidtax shall be computed by multiplying the flat rate by a fraction, the numerator of which is the number of days from the resumption of the business throughDecember 31 and the denominator of which is 365.

SEC. 21.26. EMPOWERMENT ZONE - CITY BUSINESS TAX REDUCTIONS, LIMITATIONS, AND EXEMPTIONS. (Amended by Ord. No. 172,358, Eff. 1/31/99.)

(a) Minimum Business Tax. After payment of a minimum business tax of $25.00, the amount of business tax relief to a person engaged in business at alocation in the business tax economic incentive area described in Subsection (j) but not excluded from such tax relief by Subsection (h) shall be an exemption fromthe next $500.00 in business tax liability.

(b) Time Period of Business Tax Relief. The business tax relief described in Subsection (a) of this section shall be for the tax period beginning on orafter January 1, 1995 and ending on or before the termination of the City’s Empowerment Zone as established by the City Council by ordinance. The time periodfor business tax relief for census tracts that are added to the City’s business tax economic incentive area will commence on the effective date of the Ordinanceadding the census tracts and cover the entire calendar year.

A person will only be entitled to the additional business tax relief provided for in Subsections (c), (d), (e), and (f) for up to a maximum period of five years.

(c) Additional Business Tax Relief for Existing Businesses Within the Business Tax Economic Incentive Area. Notwithstanding any other provisionof this Code, for the tax years beginning on January 1, 1999 the annual business taxes paid starting in 1999 by any person for a business located within the businesstax economic incentive area described in Subsection (j) on or after January 1, 1998, shall not exceed the business taxes paid by such person for the year endedDecember 31, 1998. Such additional relief shall be for a period of up to five years, as set forth in Subsection (b) above.

(d) Business Tax Relief for Existing Businesses Within the City Relocating into the Business Tax Economic Incentive Area. Notwithstanding anyother provision of this Code, the annual business taxes paid during any taxable year by any person for a business (1) located within the City of Los Angeles butoutside the business tax economic incentive area on or before December 31, 1998 and (2) which relocates its business activity within the business tax economicincentive area on or after January 1, 1999, shall not exceed the annual business taxes paid by such person during the tax year during which the business relocatedinto the business tax economic incentive area, subject to the relief provided in Subsection (a) above. Such additional relief shall be for a period of up to five yearsas set forth in Subsection (b) above.

(e) Business Tax Relief for Existing Businesses Outside the City Relocating Into the Business Tax Economic Incentive Area. Any person whosebusiness was located outside the City of Los Angeles as of December 31, 1997 and which locates its business activity within the business tax economic incentivearea on or after January 1, 1998, shall pay no business taxes other than the $25 minimum tax specified in Subsection (a) above for up to a five-year period as setforth in Subsection (b) above.

(f) Business Tax Relief for Newly Established Businesses Within the Business Tax Economic Incentive Area. Any person who starts a “newlyestablished business” as defined in Section 21.00 (c) of this Code within the business tax economic incentive area on or after January 1, 1998 shall pay no businesstaxes other than the $25 minimum business tax specified in Subsection (a) above for up to a five-year period as set forth in Subsection (b) above.

(g) Change of Ownership of Existing Businesses. New proprietors of pre-existing businesses located within the business tax economic incentive areashall not be eligible to receive the incentives set forth in Subsection (e) and (f) above.

(h) Excluded Businesses. The business tax relief described in Subsections (a) through (f) of this section is available to all business tax classificationslocated within the business tax economic incentive area except that no business tax exemption, waiver, decrease or freeze shall be available to any person whoseprimary activity at a location is the sale of alcoholic beverages for off-premises consumption or the sale of guns and ammunition, or which is an “adultentertainment business” as defined in the Los Angeles Municipal Code Section 12.70B.

(i) Conditions to Receive Tax Exemption. The Director of Finance shall determine that one of the following conditions applies to each person seekingbusiness tax relief under Subsections (e) and (f) above unless application of said conditions is waived by the Mayor’s Office.

(1) The business pays all of its work force at a rate at least equal to the living wage as identified in the City’s Living Wage Ordinance in LosAngeles Administrative Code Section 10.37.

(2) The business provides goods or services that are urgently needed in the business tax economic incentive area.

(3) The business can show proof of a significant investment in its workforce (For example: job training, childcare, retirement or investmentprograms; health or life insurance programs).

(4) A newly established business in the business tax economic incentive area hires at least 50% of its workforce locally from the business taxeconomic incentive area, or the buffer zone.

The Mayor’s Office shall provide annual reports to the Community and Economic Development Committee of the Council of waivers granted and thejustification for those waivers.

(j) Description of Business Tax Economic Incentive Area. The business tax economic incentive area shall lie within the boundaries of the federalEmpowerment Zone except that the business license tax economic incentive area shall extend beyond the boundaries of the Empowerment Zone to include bothsides of a street in which there is business activity where only one side of that street is included in the Empowerment Zone.

(1) The business tax economic incentive area consists of the area included within the following United States Census Tract numbers, as extended bythis subsection where applicable:

1041.020, 1047.010, 2045.000, 2051.000, 2060.000, 2062.000, 2063.000, 2073.000, 2260.000, 2270.000, 2281.000, 2282.000, 2286.000, 2287.000,2288.000, 2289.000, 2291.000, 2371.000, 2372.000, 2383,000, 2392.000. 2393.000, 2397.000, 2400.000, 2402.000, 2405.000, 2408.000, 2409.000,2420.000, 2421.000, 2422.000, 2423.000, 2426.000, 2427.000, 2430.000, 2431.000

(2) The map set forth below illustrates the location of the United States Census Tracts listed in Paragraph (1) of this subsection that comprise thebusiness tax economic incentive area. The boundaries of said business tax economic incentive area are extended as set forth in this subsection whereapplicable.

LOCATION OF UNITED STATES CENSUS TRACTS THAT COMPRISE BUSINESS TAX ECONOMIC INCENTIVE AREA(NOT ALL TRACTS PICTURED ARE LOCATED IN BUSINESS TAX ECONOMIC INCENTIVE AREA - SEE L.A.M.C. SEC. 21.26(j)(1))

[Editor’s Note: The map referred to in this section is on file in the official City documents located in the Office of the City Clerk in Council File No. CF-97-0401-S1.]

(3) The business tax economic incentive area is described in the table set forth below. The boundaries of said area are extended as set forth in thissubsection where applicable.

BUSINESS TAX ECONOMIC INCENTIVE AREA FOR THE CITY OF LOS ANGELES

The table describes both part A and part B in a continuous loop. The loop starts southward by describing part A’s western half and going down to the Slausonand South Central Avenue intersection where part B begins. At the intersection the loop travels in a westwardly direction around part B. Eventually the looptravels back North to describe part A’s eastern half.

SECTION ONEFIRST HALF OF PART A

INTERSECTION OF N. BROADWAY AND THE LOS ANGELES RIVER

BEGINNING POINT DIRECTION ENDING LIMITN. Broadway Southwest to College StreetCollege Street East to N. AlamedaN. Alameda South to Temple StreetTemple Street West to San PedroSan Pedro South to E. 1st

E. 1st West to Los Angeles StreetLos Angeles Street South to 2nd Street2nd Street West to S. HillS. Hill South to 9th Street9th Street East to Maple Ave.Maple Ave. South to E. 21st StreetE. 21st Street East to Central Ave.Central Ave. South to 42nd Street42nd Street West to AvalonAvalon South to E. 48th StreetE. 48th Street East to McKinley Ave.

McKinley Ave. North to & back up

E. 48th Street

E. 48th Street East to Central Ave.Central Ave. South to Slauson Ave.

BEGINNING OF PART B OF SECTION ONEINTERSECTION OF CENTRAL AVE. & SLAUSON AVE.

BEGINNING POINT DIRECTION ENDING LIMITSlauson Ave. West to Van Ness Ave.Van Ness Ave. South to 62nd Street62nd Street East to S. Broadway Ave.S. Broadway South to Florence Ave.Florence Ave. East to S. Central Ave.S. Central Ave. North to X-section Slauson Ave.

SECOND HALF OF PART A SECTION ONEINTERSECTION OF S. CENTRAL & SLAUSON

BEGINNING POINT DIRECTION ENDING LIMITSlauson Ave. East to S. AlamedaS. Alameda North to E. 25th StreetE. 25th Street East to & following Southern City Limits With VernonSouthern City Limits with Vernon Follow to Spence StreetSpence Street North to E. 8th StreetE. 8th Street Northwest to Soto StreetSoto Street North to Santa Monica FWY.Santa Monica FWY. West to S. Boyle Ave.S. Boyle Ave. North to Golden State FWY.Golden State FWY. North to E. 4th StreetE. 4th Street West to N. State StreetN. State Street North to E. 1st StreetE. 1st Street West to Los Angeles RiverLos Angeles River North to N. Broadway

END OF SECTION ONE (PARTS A&B)

SECTION TWOINTERSECTION OF S. CENTRAL AVE. & E. MANCHESTER

BEGINNING POINT DIRECTION ENDING LIMITE. Manchester West to San Pedro StreetSan Pedro Street North to E. 79th StreetE. 79th Street West to S. Vermont Ave.S. Vermont Ave. South to Manchester Ave.Manchester Ave. East to Figueroa

Figueroa South to 104th Street104th Street East to Wall StreetWall Street North to 93rd Street93rd Street East to E. City Limits with Walnut ParkE. City Limits with WalnutPark

North to Intersection of Manchester & S. CentralAvenues

END OF SECTION TWO

SECTION THREEINTERSECTION OF 104TH & SAN PEDRO STREET

BEGINNING POINT DIRECTION ENDING LIMITSan Pedro St. South to Imperial HwyImperial Hwy East to Wadsworth & E. 114th114th St. East to S. Central AveS. Central Ave South to Imperial Hwy

Imperial Hwy. East to E. City/County Limits at MonaBlvd.

E. City/County Limits at MonaBlvd.

North to 92nd Street

92nd Street West to Maine St.Maine St. North E. 91st StreetE. 91st Street West to ComptonCompton South to E. 92nd StreetE. 92nd Street West to Success StreetSuccess Street South to E. 103rd StreetE. 103rd Street West to S. Central AveS. Central Ave South to E. 104th Street

E. 104th Street West to X-section

San Pedro

END OF SECTION THREE

SECTION FOURINTERSECTION OF THE VAN NUYS BLVD. & THE FOOTHILL FWY.

BEGINNING POINT DIRECTION ENDING LIMITVan Nuys Blvd. Southwest to San Fernando Rd.San Fernando Rd. Southeast to Pierce StreetPierce Street Northeast to Glenoaks Blvd.Glenoaks Blvd. Southeast to Osborne StreetOsborne Street North to West side of the Hansen Dam

West side of the Hansen Dam Follow Eastto the

Rancho Tujunga Rancho Ex MissionDE San Fernando line

Rancho Tujunga Rancho Ex MissionDE San Fernando line

North to Foothill FWY.

Foothill FWY. West to X-section

Van Nuys Blvd.

END OF SECTION FOUR

(k) Administration. The business tax economic incentive program shall be administered by the Director of Finance who shall notify all known personsengaged in business at a location in the business tax economic incentive area of the program.

(l) Business Tax Forms. It shall be the responsibility of each person engaged in business to compare its activity to the tax relief provided by this sectionand complete its business tax forms accordingly.

(m) Annual Report to the Mayor and Council by Director of the Office of Administrative and Research Services. The Director of the Office ofAdministrative and Research Services shall report annually on the measurable costs and benefits of the Business Tax Economic Incentive program. (Amended byOrd. No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)

SEC. 21.27. ENTERTAINMENT AND MULTIMEDIA BUSINESS TAX LIMITATIONS. (Added by Ord. No. 170,798, Eff. 1/21/96, Oper. 1/1/96.)

(a) For every person engaged in an entertainment or multimedia business, which business is located in either the Hollywood Redevelopment Area or theNorth Hollywood Redevelopment Area, the total tax due under Sections 21.79, 21.109, 21.166, 21.167, 21.189.2, 21.189.4, 21.190 and 21.192 of this article at eachsuch business shall not exceed $25,000.00 plus 10 percent of the amount of tax in excess of $25,000.00 that would otherwise be due. (Amended by Ord. No.171,521, Eff. 3/27/97, Oper. 1/1/97.)

(b) The “Hollywood Redevelopment Area” is the area established by Ordinance No. 161,202 of the City of Los Angeles, adopted on May 7, 1986. The“North Hollywood Redevelopment Area” is the area established by Ordinance No. 152,030 of the City of Los Angeles, adopted on February 21, 1979.

(c) For the purposes of this section, the following definitions shall apply:

1. An “Entertainment Business” shall mean a business which has as its primary purpose the development, production, post-production,distribution, licensing, or marketing of motion pictures, television programming, video or audio recordings, video graphic images, and/or animation.

2. (Amended by Ord. No. 171,521, Eff. 3/27/97, Oper. 1/1/97.) A “Multimedia Business” shall mean a business that primarily:

i. Produces films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or more media,which media include, without limitation, computer generated graphics and video, film, slides, video tapes, audio tapes and photographs;

ii. Provides computer programming services on a contract or fee basis to the producer of films, disks, tapes, software or other recordingdevices, whether visual or audio, through the integration of two or more media, which media include, without limitation, computer generated graphicsand video, film, slides, video tapes, audio tapes and photographs, such services to include computer software design and analysis, modification ofcustom software, digital imaging and other related programming services; and

iii. Develops online and internet services, including the design of WEB sites, for clients.

(d) The terms “entertainment business” and “multimedia business,” as used in this section, shall not include any “adult entertainment business,” asdefined in Section 12.70 B. of this Code.

(e) The provisions of this section shall apply only to businesses that generate more than 50% of their gross receipts from entertainment and/or multimediabusiness activities.

(f) The provisions of this section shall not become operative prior to January 1, 1997, except that they shall become operative upon the commencement ofoperations for businesses which commence operations in the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area on or after January 1,1996.

(g) If either the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area, or both, shall become dissolved, the provisions of thissection shall not apply thereafter to businesses located within what had been the boundaries of the dissolved area.

SEC. 21.28. FISCAL YEAR REPORTING. (Repealed by Ord. No. 176,326, Eff. 1/16/05, Oper. 1/1/05.)

SEC. 21.29. SMALL BUSINESS EXEMPTION. (Amended by Ord. No. 176,342, Eff. 1/19/05, Oper. 7/1/05.)

(a) Small Business. No tax is required to be paid under this Article by any Small Business. A Small Business shall mean any person whose total taxableand nontaxable gross receipts from within and without the City do not exceed $50,000.00. The $50,000.00 amount shall be increased to $100,000.00 on July 1,2006.

(b) Creative Artist. No tax is required to be paid by a person under this Article for gross receipts attributable to "Creative Activities", earned when thatperson is engaged in business as a "Creative Artist", unless the total taxable and nontaxable gross receipts from within and without the City which are attributableto "Creative Activities" exceed $300,000.00 annually.

For purposes of this exemption, a "Creative Artist" shall mean only a person who operates either (1) as an individual, (2) through a corporation with oneindividual as the only shareholder and the only employee (commonly referred to as a "loan-out"), or (3) through a limited liability company with one individual as

the only member and the only employee. "Creative Activities" shall mean activities described herein. Gross receipts from Creative Activities shall not include anygross receipts received by a Creative Artist from activities that are not Creative Activities (for example, public appearances or product endorsements, or teaching asopposed to performing). Such other receipts shall not be exempt under this subsection, and shall be taxable as otherwise provided in this Article. In implementingthe intent of this subsection, the Director of Finance shall consider that Creative Activities are distinct from a craft, and that this exemption applies to CreativeArtists for their Creative Activities but not to craft persons. References to "multi-media" are to be interpreted as defined in subsection (b) of Section 21.189.4.

Eligibility for the small business exemption provided in subsection (a), above, shall be based on total taxable and non-taxable gross receipts from within andwithout the City, including receipts for Creative Activities.

Creative Activities shall mean activities performed by Creative Artists primarily for entertainment and/or aesthetic purposes, including assistants or professionaltrainees performing those same Creative Activities, in the following professions:

1. The following professions to the extent they are directly involved with motion picture, radio or television productions, commercials, multi-mediaor recorded or live music or theater:

- Actor or announcer; or

- Art director, costume designer, production designer, scenery or set designer; or

- Choreographer; or

- Cinematographer; or

- Conductor of bands, chorales, orchestras, and other musical groups; or

- Director; or

- Motion picture editor, sound dubbing, special effects, or titling artist; or

- Writer (where the writing is the writer's own creative work, but not writing that is compilation, documentation or description of a non-artisticnature, such as technical writing, the writing of technical or scientific reports, etc.); or

- Music or lyrics arranger, composer or writer; or

2. Author of books, essays, poems or short stories; or

3. Cartoon artist, including animated media; or

4. Creator of visual fine arts, using artist's materials (i.e., lithographer, painter, sculptor, or the equivalent); or

5. Drawing, graphic, illustration or sketch artist; or

6. Performing artist, including comedian, dancer, impersonator, juggler, magician, mime, musician, or singer; or

7. Photographer, to the extent the photography is primarily artistic in nature and not primarily journalistic or commercial.

(c) Any person exempt from tax under Subsections (a) or (b) shall be required to timely file for registration and subsequent renewals before thedelinquency date. The failure to timely file or renew prior to the date the taxes would otherwise have been delinquent pursuant to Section 21.05 of this Article, shallrender inapplicable the exemption provided in Subsections (a) and/or (b) and subject the person to the tax that would otherwise be payable and to any interest andpenalty applicable thereto.

SEC. 21.30. NEW BUSINESS EXEMPTION.(Amended by Ord. No. 175,029*, Eff. 2/5/03, Oper. 2/1/03.)

(a) (Amended by Ord. No. 182,275, Eff. 11/20/12.) A business that establishes a new fixed location within the City and is not owned, in whole or inpart, by a person that was engaged in business in an existing fixed location in the City in the immediately preceding tax year, is a "New Business" that shall beexempt from the applicable minimum tax for its first tax year of operation. This business shall also be exempt from any other tax imposed under this Article for upto its first two tax years of operation, or its first three tax years of operation if the business first commenced operations between January 1, 2010, and December 31,2015, as follows:

1. For its first two tax years of operation, a New Business that has less than $500,000.00 of total taxable yearly gross receipts shall be exempt fromany additional tax imposed pursuant to this article for any tax year in which it has less than $500,000 in total taxable gross receipts. However, if a NewBusiness first commences operations between January 1, 2010, and December 31, 2015, a New Business shall be exempt from any minimum or additional

tax imposed pursuant to this Article for its first three tax years of operation, regardless of how much tax would be imposed absent this exemption. Abusiness qualifying for exemption under this subdivision for its first tax year of operation shall also be exempt from the applicable minimum tax for itssecond tax year of operation, or its second and third tax years of operation if it first commences operations between January 1, 2010, and December 31,2015.

(i) The exemption for tax in the second tax year of business operation is extended to December 31, 2017. The exemptions for tax for thesecond and third tax years of business operations are subject to review and may result in a suspension under any of the following circumstances asdetermined by the Council, subject to the approval of the Mayor:

(A) The City experiences a major natural or man-made disaster including, but not limited to, earthquakes, fires, or terrorist incident,for which the response and recovery require expenditure of more than one percent of General Fund revenues (i.e., $40,000,000 in 2006-07); or

(B) An economic downturn resulting in a greater than one percent overall actual decline in all General Fund revenue for the fiscalyear ended June 30th of that year (i.e., $40,000,000 in 2006-07); or

(C) The City is legislatively, legally or otherwise precluded from levying and collecting General Fund revenue that results in agreater than one percent total decline in budgeted General Fund revenue for the fiscal year (i.e., $40,000,000 in 2006-07); or

(D) The City receives a legal judgment for which either an option for legal appeal does not exist, or the City Council and Mayordecline to pursue that legal appeal, and the judgment exceeds ten percent of the Reserve Fund (i.e., $18,500,000 in 2006-07); or

(E) There is a non-discretionary occurrence requiring expenditure of funds from the Emergency Reserve Account of the ReserveFund.

(ii) To implement a suspension of the exemption in a given calendar year, action by the Council, subject to the approval of the Mayor, mustbe made by September 30th of the preceding calendar year.

(iii) The exemption period shall be in effect for ten years unless the Council takes one of the following actions: (a) before September 30thof the fifth year the Council takes an affirmative action not to extend the exemption period for a second consecutive five year period; or (b) prior toSeptember 30th of the tenth year of the exemption period, the Council extends the exemption period beyond ten years. A suspension of the taxexemption will result in an equivalent period being added to the original ten-year exemption period, or five-year exemption period if the Counciltakes action not to extend the exemption period for the second five-year period. This would result in the sunset clause of the ordinance expiring atthe end of ten years, or the number of years the exemption was in effect plus any suspension period, whichever is greater, but in no event would theactual number of years of second year tax exemption exceed ten, unless the Council takes an affirmative action to extend the exemption periodbeyond ten years, or if the council takes an action not to extend the exemption period for a second five-year period, the sunset clause of theordinance would expire at the end of the fifth year, or the number of years the exemption was in effect plus any suspension period, whichever isgreater, but in no event would the actual number of years of second year tax exemption exceed five.

(iv) Reinstatement of the tax exemption shall require approval of the Council, subject to the approval of the Mayor.

2. A new business shall not include a construction business involved in the following activities: single-family housing construction (as defined bythe 1997 NAICS Industry Code 233210); multifamily housing construction (as defined by the 1997 NAICS Industry Code 233220); manufacturing andindustrial building construction (as defined by the 1997 NAICS Industry Code 233310); commercial and institutional building construction (as defined bythe 1997 NAICS Industry Code 233320); highway and street construction (as defined by the 1997 NAICS Industry Code 234110); bridge and tunnelconstruction (as defined by the 1997 NAICS Industry Code 234120); water, sewer and pipeline construction (as defined by the 1997 NAICS Industry Code234910); power and communication transmission line construction (as defined by the 1997 NAICS Industry Code 234920); plumbing, heating, and air-conditioning contractors (as defined by the 1997 NAICS Industry Code 235110); painting and wall covering contractors (as defined by the 1997 NAICSIndustry Code 235210); electrical contractors (as defined by the 1997 NAICS Industry Code 235310); masonry and stone contractors (as defined by the 1997NAICS Industry Code 235410); drywall, plastering, acoustical, and insulation contractors (as defined by the 1997 NAICS Industry Code 235420); carpentrycontractors (as defined by the 1997 NAICS Industry Code 235510); floor laying and other floor contractors (as defined by the 1997 NAICS Industry Code235520); roofing, siding and sheet metal contractors (as defined by the 1997 NAICS Industry Code 235610); water well drilling contractors (as defined bythe 1997 NAICS Industry Code 235810); structural steel erection contractors (as defined by the 1997 NAICS Industry Code 235910); glass and glazingcontractors (as defined by the 1997 NAICS Industry Code 235920); excavation contractors (as defined by the 1997 NAICS Industry code 235930); securitysystems services (except locksmiths) (as defined by the NAICS Industry Code 561621); or a film producer (as defined in Section 21.109 of this Code or theapplicable industry code).

(b) Any new business that is exempt from tax under Subsection (a) above shall be required to obtain a Tax Registration Certificate and an exemption letterfrom the Director of Finance. Failure to obtain these documents prior to the taxes becoming delinquent pursuant to Section 21.05 of this Code, shall renderinapplicable the exemption provided in Subsection (a) and subject the business to the tax that would otherwise be payable and to any interest and penalty applicablepursuant to Section 21.05 of this Code.

* Section 3 of Ord. No. 175,029 provides that “[t]his section is repealed effective December 31, 2006.”

SEC. 21.31. SETTLEMENT BUREAU. (Added by Ord. No. 174,083, Eff. 8/19/01, Oper. 1/1/02.)

(a) There shall be a Settlement Bureau in the City Attorney’s office, which shall be staffed by one or more representatives of the City Attorney. Thepurpose of the Settlement Bureau shall be to receive and respond to offers of settlement from persons who have been assessed or otherwise billed for delinquenttaxes, or who have filed claims for refund of overpaid taxes which have been denied in whole or in part, under this article or Articles 1.1, 1.3, 1.7, 1.11 or 1.15 ofthis chapter. The tender of an offer of settlement shall not constitute any part of the offeror’s administrative remedy process. The amount of any unaccepted offeror counteroffer of settlement shall not be disclosed by the Settlement Bureau staff to any person outside of the Settlement Bureau, whether within or without theCity Attorney’s office, except as may be necessary to obtain approval of a provisionally accepted settlement, as provided in subsection (c) hereof.

(b) Any person may tender to the Settlement Bureau an offer of settlement of a claim by or against the City, described in subsection (a) hereof, prior to thecommencement of litigation on the merits of said claim. Each such offer shall be in writing and contain the amount the offeror proposes to pay to or receive fromthe City and the factual and legal grounds in support of the offer. In response to any offer or counteroffer of settlement, the Settlement Bureau, on behalf of theCity, shall accept it, reject it or make a counteroffer. The terms of any settlement between the offeror and the City shall be set forth in a written agreement executedon behalf of both parties. The tender or pendency of an offer of settlement in the Settlement Bureau shall not affect the timing or disposition of any administrativeproceeding under Section 21.16 of this article. Upon execution of a written settlement agreement on behalf of both parties, any pending administrative proceedingon a claim which is the subject of the settlement shall terminate. Upon the commencement of litigation by or against the City on the merits of a claim which is thesubject of a pending settlement offer or counteroffer, said pending offer or counteroffer shall be deemed rejected.

(c) Any settlement offer or counteroffer accepted by the Settlement Bureau, which requires the approval of a person or entity, other than the City Attorney,pursuant to Charter Section 273 or Los Angeles Administrative Code Sections 5.173 or 5.175, shall be accepted provisionally on behalf of the City, subject toobtaining such other required approval.

SEC. 21.32. REWARDS FOR INFORMATION. (Added by Ord. No. 174,088, Eff. 8/19/01.)

(a) Reward Program. The Director of Finance is authorized to pay such sums as the Director deems necessary for detecting nonpayments andunderpayments of City of Los Angeles business tax. Any amount payable under this section shall be paid from the proceeds of the amount collected as a result ofthe information provided.

(b) Eligibility to File Claim for Reward. Any person, other than certain present or former City of Los Angeles employees, who submits to the Office ofFinance information relating to the nonpayment or underpayment of business tax is eligible to file a claim for reward under this section. No person who wasemployed by the City of Los Angeles in the Office of Finance, at the time he or she came into possession of information relating to the nonpayment orunderpayment of business tax, or at the time he or she submitted such information to the Office of Finance, shall be eligible for reward under this section. Anyother City officer or employee, or former City officer or employee, is eligible to file a claim for reward if the information submitted to the Office of Finance cameto his or her knowledge other than in the course of his or her official duties.

(c) Submission of Information and Filing Claim for Reward. Any person desiring to claim a reward under this section must submit informationrelating to the nonpayment or underpayment of business tax to the Office of Finance on a form furnished by, and in the manner prescribed by, the Director ofFinance. As early as the time of such submission of information, but no later than one year after the City’s recovery of unpaid or underpaid business tax pursuant tothe submitted information, the person must file a claim for reward with the City Clerk on a form furnished by, and in the manner prescribed by, the Director ofFinance.

(d) Payment of Reward. All relevant factors, including the value of the information furnished in relation to the facts developed by the investigation ofthe nonpayment or underpayment, shall be taken into account by the Director of Finance in determining whether a reward shall be paid, and if so, the amountthereof. Reasons for rejecting a claim for reward include, but are not limited to:

(1) the information submitted by the informant was of no value;

(2) the information submitted by the informant was already known to the City; and

(3) payment would be contrary to law.

(e) Amount of Reward. The amount of a reward shall represent what the Director of Finance deems to be adequate compensation in the particular case,not to exceed 10 percent of the additional taxes, interest and penalties which are recovered as a result of the information. No reward shall be paid if the Director ofFinance determines that the recovery was so small as to call for a reward of less than $50.00. Payment of a reward will be made as promptly as the circumstances ofthe case permit, but not until the taxes, interest and penalties involved have been collected. However, the informant may waive any claim for reward with respectto an uncollected portion of the taxes, interest and penalties, in which case the claim may be immediately processed. Only a duly authorized representative of theDirector of Finance is authorized to make any offer or promise, or statement otherwise purporting to bind the Director of Finance with respect to the payment of anyreward or the amount thereof, and any such offer, promise or statement must be in writing.

(f) Protest by Informant Against Action on Claim. If an informant protests the action taken on the claim, the Director of Finance or the Director’srepresentative may confer with the informant or his or her representative to resolve the protest. In the course of such conferring, the Director or his or her

representative may disclose the amount collected pursuant to the information furnished by the informant, notwithstanding the provisions of Section 21.17 of thisarticle. However, the results of any audit or examination shall not be revealed to the informant or his or her representative in violation of Section 21.17 of thisarticle.

(g) Anonymity of Informant. In order to fairly distribute the burden of taxation among the subjects thereof, it is the policy of the City of Los Angeles toencourage informants to submit information concerning unpaid and underpaid business taxes. In furtherance of this policy, no person shall disclose the identity ofan informant to any unauthorized person, except to the extent required by law. If other than the informant’s true name is used in furnishing the information, theclaimant must include with his or her claim satisfactory proof of his or her identity as the informant.

SEC. 21.33. [TAX RATES.] (Added by Ord. No. 178,101, Eff. 1/9/07.)

Unless specifically listed under other areas of this article, the annual tax rates are as follows:

(a) Tax Rate A shall be $1.05 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(b) Tax Rate B shall be $1.32 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(c) Tax Rate C shall be $2.65 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(d) Tax Rate D shall be $3.28 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(e) Tax Rate E shall be $3.70 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(f) Tax Rate F shall be $5.28 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

SEC. 21.41. GROSS RECEIPTS FUND CLASS 1. (Amended by Ord. No. 181,127, Eff. 5/3/10.)

For every person engaged in business as a Child Care Provider, Multimedia Business, Internet-based Application Service Provider, Internet-based DataManipulation Businesses, Telephone Company, Tugboat and/or Barge Operator, Tax Rate A, set forth in Section 21.33(a), shall be applicable.

(a) CHILD CARE PROVIDERS.

1. A child care provider means providing non-medical care for children under 18 years of age in need of personal services, supervision orassistance essential for sustaining the activities of daily living or for the protection of the individual on less than a 24-hour basis.

2. As used in this section, the term "gross receipts" does not include receipts of:

(i) Community chests, funds, foundations or corporations organized and operated for religious, hospital or charitable purposes, notconducted for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual;

(ii) Non-profit secondary schools, which are duly accredited by the University of California, and receipts of non-profit elementaryschools in which instruction is given to students in the pre-primary and primary grades in the several branches of studies required to be taughtin the public schools of the State of California;

(iii) Rotary, Kiwanis and Lions Clubs, non-profit automobile clubs, chambers of commerce, and other community serviceorganizations; also receipts of trade associations such as Merchants Plumbers Association, Merchants and Manufacturers Association andlabor organizations.

(b) MULTIMEDIA BUSINESSES.

1. A multimedia business means a business that produces films, disks, tapes, software or other recording devices, whether visual or audio,through the integration of two or more media, which media include, without limitation, computer generated graphics and video, film, slides, videotapes, audio tapes and photographs or provides computer programming services on a contract or fee basis to the producer of these media. Theseservices shall include computer software design and analysis, modification of custom software, digital imaging and other related programmingservices, the development of online and internet services and the design of web sites for clients.

2. A multimedia business shall not include a business that utilizes multimedia to sell goods or further its business, motion picture, televisionor radio producers, or radio or television broadcasters, or an adult entertainment business, as defined in Section 12.70 B. of this Code.

(c) INTERNET-BASED APPLICATION SERVICE PROVIDERS.

1. An internet-based application service provider (ASP) means a business that provides its customers access, exclusively through theinternet, to electronic applications that are available exclusively on computer devices operated by or on behalf of the ASP. An "electronicapplication" is a computer program that provides the user with the ability to accomplish a specific task. An ASP shall not include a business thatprovides electronic applications, including but not limited to computer software, for customers to download through the internet. A business doesnot qualify as an ASP unless its internet-based electronic application provides information to the user directly without any substantial intermediationby any person except for technical support related to the use of the electronic application. An ASP shall not include a business that sells electronicapplications through the internet, or any business that obtains its income from the use of its electronic applications by itself, on its behalf, or by anyrelated entity as defined in section 21.00(a).

2. An ASP business shall not include a business that utilizes an application to sell goods or further its business, motion picture, television orradio producers, telephone companies, or radio or television broadcasters, or an adult entertainment business, as defined in Section 12.70 B. of thisCode.

3. The ASP business tax classification shall apply only for the 2010, 2011, 2012, 2013, and 2014 tax years unless the Council acts byordinance to amend this Section and extend the length of time for which this classification shall apply.

(d) INTERNET-BASED DATA MANIPULATION.

1. An internet-based data manipulation business means a business that exclusively provides access to internet-based applications that allowa user to search, compile, and otherwise manipulate data, including but not limited to a business that operates or provides access to one or several"search engines". A "search engine" is an internet-based application that retrieves documents or files or data from the internet, a computer network,a database, or other data sources. "Data" includes visual, numerical, and written information. A business does not qualify as an Internet-based DataManipulation Business unless its internet-based application provides information to the user directly without any substantial intermediation by anyperson except for technical support related solely to the use of the internet-based application.

2. An internet-based data manipulation business shall not include a business that utilizes internet-based data manipulation to sell goods orfurther its business, motion picture, television or radio producers, telephone companies, or radio or television broadcasters, or an adult entertainmentbusiness, as defined in Section 12.70 B. of this Code.

3. The internet-based data manipulation business tax classification shall apply only for the 2010, 2011, 2012, 2013, and 2014 tax yearsunless the Council acts by ordinance to amend this Section and extend the length of time for which this classification shall apply.

(e) TELEPHONE COMPANIES.

1. A person engaged in the business of providing telephone services means a telephone company as the term is used in Article XIII, Section14 of the Constitution of California.

2. For the purpose of this section, "gross receipts" shall have the same meaning as in Subsection (a) of Section 21.00, except that only thosereceipts derived from providing telephone services within the City of Los Angeles shall be included, and further excepting, that only receiptsresulting from intrastate telephone services shall be included. "Gross receipts" shall also include receipts from the selling of advertising oradvertising space in any directory, other printed matter or any other media only for business tax purposes commencing on or after January 1, 1984.

(f) TUGBOAT AND BARGE OPERATORS. Tugboat and barge operator means any person engaged in the business of operating a tugboat orbarge.

SEC. 21.42. GROSS RECEIPTS FUND CLASS 2. (Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in wholesale sales, Tax Rate A, set forth in Section 21.33(a), shall be applicable.

(a) A wholesale sale or sale at wholesale means a sale of goods, wares or merchandise for the purpose of resale in the regular course of business;provided that a blind person, within the meaning of this section, need not include the first $100,000.00 of gross receipts in the computation of the amount oftax due. This exemption shall not subject these persons to the provisions of Section 21.49, Professions and Occupations, of this article.

(b) A blind person, within the meaning of this section, means a person having not more than ten percent visual acuity in the better eye, withcorrection as certified by a licensed physician and surgeon who specialize in diseases of the eye or the Bureau of Vocational Rehabilitation of theDepartment of Education of the State of California. The exemption provided by this section shall not apply until a certificate as to the blindness shall befurnished to the Director of Finance.

(c) No tax under this article shall be required to be paid by any non-profit wholly owned retailer food cooperative by reason of its sales to itsowner-members.

(d) For the purpose of this section, newspapers, magazines, periodicals, books and other printed matter is deemed to be included in the term "goods,wares or merchandise" and the term "gross receipts" means California receipts from the selling or furnishing of advertising or advertising space in printedmatter in addition to California receipts from the sale of goods, wares or merchandise. The provisions of this subsection shall apply only to business taxperiods commencing on or after January 1, 1984.

SEC. 21.43. GROSS RECEIPTS FUND CLASS 3. (Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in business as an Antique Show or Collectors Exchange Show Promoter, Swap Meet Operator; engaged in the business of RentingAccommodations or Residential Rentals, Rentals of Office, Commercial Buildings, etc., Tax Rate B, as set forth on Section 21.33(b), shall be applicable.

No registration certificate shall be required or a tax paid by any person engaged in one or more of the businesses described in this section, unless the total grossreceipts derived from being so engaged are equal to or in excess of $20,000.00 per calendar year.

(a) ANTIQUE SHOW AND COLLECTORS EXCHANGE SHOW PROMOTER.

1. Antique show, collectors, exchange show, antique show or collectors exchange show promoter and antique show or collectors exchangeshow exhibitor shall be as defined in Article 3, Division 9, Section 103.301.1 of this Code.

2. In addition to the tax stated here, there is an additional $0.59 per space for each show space rented for each day of show operation. Theportion of the tax measured by space rentals shall be paid to the Director of Finance on a monthly basis, and shall be delinquent if not paid within thecalendar month following the month during which the tax is accrued, notwithstanding any other provision of this article. If the promoter of theantique show or collectors exchange show is an organization otherwise exempted from the payment of taxes under this chapter, it shall be required,notwithstanding any other provision of this article, to obtain a business tax registration certificate and pay to the Director of Finance the above notedspace rental taxes. The promoter must pass the space rental tax on to the antique show or collectors exchange show exhibitor and the reimbursementshall not be included in the promoter's gross receipts under this section.

3. For the purpose of taxation of antique shows and collectors exchange shows, the definitions contained under Rental of Office,Commercial Buildings, etc., in this section shall apply, except that the definition of "tenant" and "tenancy" shall include land or space on land, and isnot limited to the occupation of a building or structure or space.

(b) SWAP MEET OPERATOR.

1. A swap meet operator is defined in Article 3, Division 9, Section 103.311 of the Los Angeles Municipal Code.

2. In addition to the tax stated here, there is an additional $.059 per space for each swap meet space rented for each day of swap meetoperation. The portion of the tax measured by space rentals shall be paid to the Director of Finance on a monthly basis and shall be delinquent if notpaid within the calendar month following the month during which the tax is accrued, notwithstanding any other provision of this article. If theoperator of the swap meet is an organization otherwise exempted from the payment of taxes under this chapter, it shall be required, notwithstandingany other provision of this article, to obtain a business tax registration certificate and pay to the Director of Finance the above noted space rentaltaxes. The swap meet operator may pass the space rental tax on to the swap meet vendor and the reimbursement shall not be included in the swapmeet operator's gross receipts for purposes of this section.

3. For the purpose of taxation of swap meets, the definitions contained under Rental of Office, Commercial Buildings, etc., in this sectionshall apply, except that the definition of "tenant" and "tenancy" shall include land or space on land, and is not limited to the occupation of a buildingor structure or space.

(c) RENTING ACCOMMODATIONS OR RESIDENTIAL RENTALS.

1. Renting accommodations or residential rentals means every person engaged in the business of conducting or operating a hotel, roominghouse, boarding house, apartment house, lodging house, house court or bungalow court, and every person engaged in the business of renting or lettingrooms, apartments or other accommodations for dwelling, sleeping or lodging in any similar place, and every person engaged in the business ofoperating any public camp, or trailer camp, park or lot where the public may rent camping, trailer or tent space, or services provided or available inconnection with that space.

2. Notwithstanding the provisions of Section 21.06 to the contrary, a person required by this section to pay a tax need obtain only oneregistration certificate by reason of that requirement; but he or she shall include in the measure of the tax the gross receipts derived from allbusinesses taxed by this section engaged in by him or her within the City of Los Angeles, whether at one or more than one location. At the time thetax provided here is remitted, the Director of Finance may require the registrant to furnish a statement of the number of these businesses conducted byhim or her, giving the street address of each location, the amount of gross receipts attributable to each location, and designating a location at whichthe registration certificate issued shall be posted as provided in Section 21.09. The location so designated shall be considered the location of thebusiness for the purpose of Section 21.08.

3. The Director of Finance may require a person engaged in any business taxed by this section to furnish information necessary in order forthe Director of Finance to determine the nature of the ownership of the business, and the amount of interest that parties to the ownership of thebusiness claim or possess. Where the Director of Finance determines that the parties claiming or possessing an ownership interest in two or morebusinesses taxed by this section, one or more of which produces less than $20,000.00 in gross receipts in a particular calendar year, are substantiallythe same, he may require that the receipts of all these businesses be used as the measure of any tax that may be due, and issue a registration certificateand the identifying symbols as may be required in the manner prescribed in Subsection (c)2. Notice of the determinations made by the Director ofFinance shall be served on the persons or parties affected by his or her determination in the same manner as notices of assessment are served underthe provisions of Section 21.16. Any person or party affected by the determination of the Director of Finance may protest the determination bymaking written application for a hearing within ten days after the mailing or serving of the notice of the Director of Finance's determination. Within15 days after receiving a request for a hearing, the Director of Finance shall cause the matter to be set for hearing before a board constituted asprovided in Section 21.16. The Board shall consider the evidence, make findings, serve a copy of the findings, and receive and consider anyexceptions that may be filed, and make any modification of its findings it may deem necessary. Once the Board completes those steps, the findingsof the board shall be considered final.

4. No tax under this section shall be required to be paid by any cooperative housing corporation by reason of its renting or letting to itstenant-stockholders.

(d) RENTAL OF OFFICE, COMMERCIAL BUILDINGS, ETC.

1. Commercial Rental means renting or letting a building or structure of any kind on land located in the City of Los Angeles to a tenant forpurposes other than dwelling, sleeping or lodging, or renting or letting space or the use or possession of space, or the right to use or possess space in abuilding or structure to a tenant for those purposes, and for every lessor engaged in the business of renting or letting boat slips or moorings. Tenantand tenancy shall include tenants and tenancies of all types, and persons occupying and the occupation of a building or structure, or space in abuilding or structure under any license or any concession agreement with a lessor. The right to use or possess the space shall be deemed to be thesame as actual occupation.

2. The foregoing definition includes renting and letting of every kind and character, whether by an owner, lessee or sublessee, and licensing,and the granting of a concession by any of them, without regard to the length of the term of the tenancy, the date of its commencement, expiration orrenewal, without regard to the number of tenants a lessor may have, or the number of buildings or structures, or the quantity of space in the buildingsor structures, or the number of boat slips or moorings a lessor may have available for renting or letting to a tenant. It shall not fail to be acommercial rental by reason of the fact that one or more persons may reside within the building or structure where either the primary purpose of theparticular tenancy or the primary use or right of use by the particular tenant is for some purpose other than dwelling, sleeping or lodging. It also shallnot fail to be a commercial rental by reason of the fact that the tenant proposes to operate or does in fact operate the building or structure as apremises for a hotel, apartment or other dwelling.

Commercial rental specifically does not include any of the following:

(i) Maintaining a storage or warehouse and required to pay a tax for that business under other provisions of this article;

(ii) Providing space in a building or structure for the parking or storage of automobiles, and required to pay a tax for that businessunder other provisions of this article;

(iii) Operating a theater, exhibition hall or any similar place of public assemblage or entertainment, to the extent that the receipts arecharges collected from patrons for admission to the premises;

(iv) To the extent that a business activity includes renting to casual tenants, where casual tenant and casual tenancy means any tenantor tenancy where the consideration paid or agreed to be paid consists exclusively of services; or where, after examining all the facts, theDirector of Finance determines that the only tenancy is that of one or more tenants paying to a sublessor, primarily on a cost-sharing basis forthe space used, involving less than 25% of the space under the control of the sublessor, and is terminable at will, a business otherwise subjectto tax as a commercial rental;

(v) A business where the gross receipts are received as compensation for permitting coin-operated machines and devices to beplaced, or to remain on or within the premises under the control of the lessor;

(vi) Conducting, operating, promoting or sponsoring a bona fide trade show as defined in Section 21.168.4(b), of this article, wherethe bona fide trade show does not exceed 14 days; neither shall these persons be subject to tax under any other provision of this article byvirtue of engaging in any activity for which an exemption is granted in this paragraph.

(vii) Acting as an antique show or collectors exchange show promoter or as a swap meet operator, both of which are defined inArticle 3, Division 9, Section 103.311 of this Code.

(viii) Renting or letting boat slips or moorings to the extent that the boat slips or moorings are used exclusively for commercialpurposes.

3. Notwithstanding the provisions of Section 21.06 to the contrary, a lessor required by this section to pay a tax need obtain only oneregistration certificate; but he or she shall include in the measure of the tax the gross receipts derived from all businesses taxed by this sectionengaged in by him or her within the City of Los Angeles, whether at one or more than one location. At the time the tax provided here is remitted, theDirector of Finance may require the registrant to furnish a statement of the number of these businesses conducted by him or her giving the streetaddress of each location, the amount of gross receipts attributable to each location, and designating a location at which the registration certificateissued shall be posted as provided in Section 21.09. The location so designated shall be considered the location of the business for the purposes ofSection 21.08.

4. A promoter or operator of a consumer show, exhibition or fair shall submit to the Director of Finance a list containing the legal name,doing business as name (DBA), business address, mailing address and telephone number of each participating exhibitor 30 days prior to the date ofthe consumer show, exhibition or fair and shall provide each participating exhibitor with information of the City's Business Tax requirements.

SEC. 21.44. GROSS RECEIPTS FUND CLASS 4. (Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of Retail Sales, Laundry, Cleaning or Service and Shoe Repair, Tax Rate B, as set forth in Section 21.33(b), shall beapplicable.

(a) RETAIL SALES.

1. A retail sale or sale at retail means a sale of goods, wares or merchandise for any purpose other than resale in the regular course ofbusiness; provided that a blind person need not include the first $75,000.00 of gross receipts in the computation of the amount of tax due. Thisexemption shall not subject these persons to the provisions of Section 21.49, Professions and Occupations, of this article.

2. A blind person, within the meaning of this section, means a person having not more than ten percent visual acuity in the better eye, withcorrection as certified by a licensed physician and surgeon who specializes in diseases of the eye, or the Bureau of Vocational Rehabilitation of theDepartment of Education of the State of California. The exemption provided by this section shall not apply until a certificate of blindness has beenfurnished to the Director of Finance.

3. Whenever a person engages at the same location in two or more businesses of the kind taxed in this section, a joint RegistrationCertificate shall be issued for all these businesses and the tax shall be measured by the sum of the gross receipts of all these businesses so conducted.

4. For the purpose of this section, newspapers, magazines, periodicals, books and other printed matter shall be deemed to be included in theterm "goods, wares or merchandise" and the term "gross receipts" means California receipts from the selling or furnishing of advertising oradvertising space in printed matter in addition to California receipts from the sale of goods, wares or merchandise. The provisions of this subsectionshall apply only to business tax periods commencing on or after January 1, 1984.

5. The provisions of this section shall not apply to an exhibitor who displays, exhibits or offers for sale or exchange any secondhandpersonal property at an antique show or at a collectors exchange show, or a vendor who sells, exchanges, displays or offers for sale or exchange newor secondhand goods at a swap meet, as defined in Article 3, Division 9, Section 103.311 of this Code. This exemption applies only to that portion ofan exhibitor's or vendor's receipts from sales or exchanges at an antique show, collectors exchange show or swap meet.

(b) LAUNDRY, CLEANING OR SERVICE AND SHOE REPAIR. Laundry, cleaning and dyeing agent, collector, linen supply and shoe repairmeans washing, ironing, drying, cleaning, dyeing, sizing, blocking or pressing any clothing, wearing apparel, garment, linen, fabric or similar material, orsimilar article of personal property, whether accomplished by hand, machine or any coin-operated machine operated by a person, his or her employee or anycustomer, or furnishing or letting the use of any towels, linens, aprons, bedding, napkins, table covers, or any other article of personal property of a similarnature, or collecting or delivering any similar article as an agency or otherwise, for a fee or charge, or repairing or rebuilding shoes; provided that a personengaged in business subject to tax under this section, makes minor alterations or repairs to the clothing, wearing apparel, garments, linens, fabrics or similarmaterial being washed, ironed, dried, cleaned, dyed, sized, blocked or pressed, in lieu of paying a separate business tax and obtaining a separate registrationcertificate under this article for the conduct of each business, may combine the gross receipts of all these businesses at that location and upon the basis of thatcomputation pay a combined business tax and obtain a single registration certificate under this section for all these businesses at that location.

SEC. 21.45. GROSS RECEIPTS FUND CLASS 5. (Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of Radio and Television Broadcaster, and Theater, Tax Rate B, set forth in Section 21.33(b), shall be applicable.

(a) RADIO AND TELEVISION BROADCASTER.

1. Radio Broadcaster means any person engaging in the business of producing and broadcasting or broadcasting local or network radioprograms or advertising material, including the furnishing of services, program elements or facilities in connection with production, production andbroadcasting, or broadcasting.

2. Television Broadcaster means any person engaging in the business of producing and broadcasting or broadcasting local or networktelevision programs or advertising materials, including the furnishing of services, program elements or facilities in connection with production,production and broadcasting, or broadcasting. A "television broadcaster" shall include any person operating a television system where the viewingaudience pays a fee to view the broadcast.

3. When gross receipts are constitutionally required to be apportioned and are derived from or attributable to activities engaged in bothwithin and without the City, gross receipts shall be apportioned in a manner that is fairly calculated to determine the amount of gross receipts derivedfrom or attributable to engaging in business in the City. This apportionment shall be made on the basis of payroll, value and situs of tangibleproperty, general expense, or by reference to any of these or other factors, or by any other method of apportionment, that will fairly determine theamount of gross receipts derived from or attributable to engaging in business in the City. Gross receipts derived from or attributable to sourceswithin the City shall include gross receipts from any activities carried on in this City.

4. Notwithstanding the foregoing, the gross receipts used in the measurement of the tax under this section shall be limited to receipts that aregenerated, produced, or attributable to local activities in the State of California.

5. The provisions of this section shall apply only to business tax periods commencing on or after January 1, 1984.

(b) THEATER. Theater Operator means any person engaged in the business of conducting a theater containing a permanent stage upon whichmovable scenery and theatrical appliances are used, where regular theatrical or vaudeville performances are given and for the privilege of viewing theperformances, a fee is charged, collected or received, or conducting, managing or carrying on a moving picture theater or drive-in theater, where moving ormotion pictures are exhibited and a fee is charged, collected or received, or conducting, operating or promoting any entertainment, show or exhibition nototherwise required to pay a tax under other provisions of this article, where an admission fee is charged, collected or received, or where no admission fee ischarged, collected or received but donations of any kind or character are solicited or accepted. Provided, that in connection with any entertainment, show orexhibition, if no admission fee is charged, collected or received, and no donations of any kind or character are solicited or accepted, or if the personconducting, operating or presenting the entertainment, show or exhibition taxed under this section is a person mentioned in Section 21.49 (c)3.(iv),Professions and Occupations, or if the person is a strolling musician who performs on sidewalks, in parks and similar publicly owned places where noadmission fee is charged, collected or received, even though donations are solicited and collected, no tax shall be required to be paid for those performancesby that person.

SEC. 21.46. GROSS RECEIPTS FUND CLASS 6. (Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of Promoting or Staging Sporting Events, Operating or Maintaining Vending Machines, Collection Agencies, Storage,Freight Forwarding/Steamship Agency, and Personal Property Rental, Tax Rate C, as set forth in Section 21.33(c), shall be applicable.

(a) SPORTING EVENT. Sporting Event means the business of promoting or staging any baseball, football, soccer, tennis, polo, swimming,boxing, wrestling, or similar exhibition, event or contest; provided, however, as used in this section, "gross receipts" shall not include any of the following:

1. Receipts from a trade, calling, occupation, vocation, profession or other means of livelihood, which this City is prohibited from taxingunder the Constitution or laws of the United States, or under the Constitution or laws of the State of California;

2. Receipts of community chests, funds, foundations or corporations organized and operated for religious, hospital or charitable purposes,not conducted for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual;

3. Receipts of non-profit educational institutions of collegiate grade, defined here to mean institutions incorporated as colleges or seminariesunder the laws of the State of California, which require for regular admission the completion of a four-year high school course, or its equivalent, andwhich confer upon their graduates at least one academic or professional degree, based on a course of at least four years in liberal arts and sciences, oron a course of at least three years in professional studies such as law, theology, education, medicine, pharmacy, architecture, fine arts, commerce orjournalism; receipts of non-profit secondary schools which are duly accredited by the University of California; and receipts of non-profit elementaryschools in which instruction is given to students in the pre-primary and primary grades in the several branches of studies required to be taught in thepublic schools of the State of California;

4. Receipts of Rotary, Kiwanis and Lions Clubs, non-profit automobile clubs, Chambers of Commerce, and other community serviceorganizations; also receipts of trade associations such as Merchants Plumbers Association, Merchants and Manufacturers Association and labororganizations.

(b) VENDING MACHINES.

1. Vending Machine Operator means the business of operating, maintaining or letting the use of any coin-operated vending machine for thedispensing of goods, wares, merchandise or other tangible property.

2. Except as otherwise provided in this section, each coin-operated vending machine, which is operated, maintained or used within this City,

shall have conspicuously stamped upon it or affixed on it for identification purposes, the name and address, Business Tax Registration Certificatenumber, and the telephone number, if any, of the owner or operator. The identification shall be provided by the owner or operator of the machine andat his expense, notwithstanding the provisions of Section 21.06(b) to the contrary, and shall be removed from the machine by the owner or operatorwhen the authority to use the machine is transferred to another person, whether by sale, lease, license or otherwise.

3. No business tax or identification shall be required for the maintenance or operation of:

(i) Any postage stamp machine;

(ii) Any machine dispensing sanitary or hygienic articles, or drinking cups, towels or medicine, which machine is entirely owned andsupplied by the owner or operator of the premises where the machine is installed, and is maintained solely for the convenience of employees,visitors or customers and, not for profit to him or to any other person;

(iii) Any machine, which is entirely owned, operated and supplied by the owner or operator of the premises where the machine isinstalled, and the owner or operator holds a valid registration certificate at that location to engage in a business taxed under the provisions ofSection 21.42, Wholesale Sales or Section 21.44, Retail Sales, of this article, and the owner or operator includes the gross receipts from thesale of all goods, wares, merchandise or other tangible property dispensed by the machine in the measure of the applicable business tax paidunder Section 21.42, Wholesale Sales or Section 21.44, Retail Sales, of this article;

(iv) Any machine dispensing newspapers or other printed matter.

(c) COLLECTION AGENCIES.

1. Collection agency means and includes all persons engaged directly or indirectly and as primary or secondary object, business or pursuit, insoliciting claims for collection or in the collection of claims owed or due or asserted to be owned or due to another, and any person, when engaged incollecting accounts for another, where the employment is for one or more persons, shall be deemed to be engaged in the collection business withinthe meaning of this section. Any person using a fictitious name in collecting his or her own accounts receivable with the intention of conveying tothe debtor that a third party has been employed, is a collection agency as contemplated by this section and shall be subject to these provisions. Theterm "collection agency" shall not include attorneys-at-law, individuals regularly employed on a regular wage or salary, in the capacity of credit menor in other similar capacity upon the staff of employees of any one person not engaged in the business of a collection agency, banks, abstractcompanies doing an escrow business, duly licensed real estate brokers or agents doing a real estate business, nor a merchant-owned non-profit creditassociation unless they are conducting a collection agency.

2. In computing the tax imposed by this section, there shall be deducted from gross receipts the amount received as the result of collectionsmade outside of the State of California.

(d) STORAGE, FREIGHT FORWARDING.

1. Freight Forwarding means the business of preparing the documentation and otherwise arranging for the importation or exportation ofgoods, wares or merchandise, or of collecting or consolidating for shipment in carload lots or less, truck load lots or less, any goods, wares ormerchandise, as agent or bailee for any person where a fee is charged for that service.

2. Steamship Agency means the business of soliciting, receiving or handling outbound or inbound freight aboard vessels attending tooperational requirements of vessels while they are entering, within and departing from a port, and performing husbanding services, such as arrangingfor ships stores, bunker fuel, crew changes, vessel repairs and delivery or re-delivery of vessels pursuant to charter.

3. Storage or Warehousing means the business of storing goods, ware or merchandise of any kind.

(e) PERSONAL PROPERTY RENTAL.

1. Personal Property Rental means the business of leasing or renting any tangible personal property. For the purpose of this section,Tangible Personal Property means personal property that may be seen, weighed, measured, felt, or touched, or which is in any other mannerperceptible to the senses.

2. Nothing in this section shall be construed to require the inclusion of the amount received for the leasing or renting of tangible personalproperty, the entire use of which is made wholly outside the State of California.

SEC. 21.47. GROSS RECEIPTS FUND CLASS 7. (Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of Commission Broker and Independent Telemarketing, Tax Rate D, as set forth in Section 21.33(d), shall beapplicable.

(a) COMMISSION BROKERS. Commission Broker means any person engaged in the business of buying and selling of goods, wares ormerchandise by a person to the extent that the person:

1. Does not engage in the business of manufacturing, refining, fabricating, milling, treating or other processing of the goods, wares ormerchandise bought and sold and, does not cause the goods, wares or merchandise to be manufactured, refined, fabricated, milled, treated orotherwise processed;

2. Does not obtain or retain title to the goods, wares or merchandise, except while the goods, wares or merchandise may be in transit, or forshort periods of time before transportation commences or after it ceases; and

3. Does not store or warehouse the goods, wares or merchandise, except while the goods, wares or merchandise are actually in transit, or forshort periods of time before transportation commences or after it ceases.

(b) INDEPENDENT TELEMARKETING AGENCY. Independent Telemarketing Agency means any person who engages in the business ofmarketing services or goods, wares or merchandise on behalf of three or more clients continuously, none of which has any ownership interest in the person,by use of a telecommunications device at a call center. An Independent Telemarketing Agency shall not include a person who sells his or her own servicesor goods, wares or merchandise. A call center means a location in which 25 or more persons are continuously employed or utilized to make and/or receivetelephone calls by means of a centralized telecommunications system.

SEC. 21.48. GROSS RECEIPTS FUND CLASS 8. (Added by Ord. No. 178,101, Eff. 1/9/07.)

(a) For every person engaged in business providing miscellaneous services as an Advertising Agency, Aircraft Support Contractor, Apparel Subcontractor,Bookbinder, Check Cashing Service, Drapery Subcontractor, Heat Treater, Mailing Service, Metal Plater, Music Teacher, Public Relations Agency, RefuseContractor, Shoe Shining Stand, Parlor Operator, Silk Screen Apparel Subcontractor, Temporary Help Agency, Ticket Seller, Travel Agency, Typesetter or WireTerminator, Tax Rate E, as set forth in Section 21.33(e), shall be applicable.

(b) For purposes of this section, the following terms are defined as follows:

Miscellaneous Services means any person engaged in business as an advertising agency, aircraft support contractor, apparel subcontractor, bookbinder,check cashing service, drapery subcontractor, heat treater, mailing service, metal plater, music teacher, public relations agency, refuse contractor, shoeshining stand or parlor operator, silk screen apparel subcontractor, temporary help agency, ticket seller, travel agency, typesetter or wire terminator.

Advertising Agency means any person who engages in the business of advertisement counseling, including the writing, composing, designing andplacement of advertisements for clients, regardless of the advertising media employed; provided however that the extent the person employs the use of his orher own media, he or she shall not be considered an advertising agency with regard to either the promotion or placement of advertisements in that media.

Aircraft Support Contractor means any person who engages in the business of furnishing ground support services to airline carriers, including theproviding of ramp services, baggage and freight handling services, ticket services, mechanical services, fueling services or other similar services normallyperformed at an airport.

Apparel Subcontractor means any person who engages in the business of cutting, sewing, or fabricating any clothing, wearing apparel, garment, orsimilar material belonging to an apparel manufacturer or pursuant to a contract with another apparel subcontractor.

Bookbinder means any person engaged in the business of binding books.

Check Cashing Service means any person engaged in the business of cashing payroll checks, for a fee or charge and for every person whose businessconsists in whole or in part of cashing checks for others for a fee or charge.

Drapery Subcontractor means any person who engages in the business of cutting, sewing, or fabricating any draperies, curtains, or similar materialbelonging to a drapery manufacturer, drapery jobber, or drapery seller, or pursuant to a contract with another drapery subcontractor.

Heat Treater means any person who engages in the business of changing the hardness and/or strength of metal materials of another by controlled heatprocess methods.

Mailing Service means any person who engages in the business of preparing printed matter for mailing (such as, by sorting, collating, tying, inserting,addressing, and metering), mailing the printed matter, or providing (without selling), advising as to, compiling, or maintaining lists of persons, businesses, orlocations for use in mailing printed matter.

Metal Plater means any person who engages in the business of plating, anodizing or galvanizing metal articles of another electrolysis or any otherplating process.

Music Teacher means any person who engages in the business of teaching music.

Public Relation Agency means any person who engages in the business of promoting rapport and goodwill between a person and other persons, specialpublics, or the community at large through the distribution of interpretative material, the development of neighborly interchange and the assessment of publicreaction.

Refuse Contractor means any person who engages in the business of hauling refuse.

Shoe Shining Stand or Parlor Operator means any person who engages in the business of operating or maintaining a shoe shining stand or parlor.

Silk Screen Apparel Subcontractor means any person who engages in the business of performing silk screen printing work upon any clothing,wearing apparel, garment, or similar material belonging to an apparel manufacturer or pursuant to a contract with another silk screen apparel subcontractor.

Temporary-Help Agency means any person engaged in the business of supplying his employees to others on a temporary basis, provided however thatthis term does not include an agency for the brokerage of labor for a fee to be paid either by the applicant for employment or the prospective employer.

Ticket Seller means any person, who engages in the business of selling rights, evidenced by tickets, which entitle the purchaser to view, hear and/orattend a theatrical, cultural, sporting or similar event and who does not sponsor, promote, produce or contribute to the event. Ticket seller includes personsselling rights on their own account and persons selling rights as broker or agent for another person.

Travel Agency means any person who engages in business as a broker of travel services, and who arranges for transportation, tours, lodging facilities,food, entertainment, and other similar accommodations or related services.

Typesetter means any person who, as a typesetter, compositor, typographer, or type founder, engages in the business of setting type for another byhand, cold type process, hot metal process, photographic process, or any other similar mechanical or photochemical "type assembly" process.

Wire Terminator means any person who engages in the business of connecting components and circuits of electronic panels of another configuredwiring by means of fully automatic equipment.

As used in this section, the term "gross receipts" includes all receipts included by the provisions of Subsection (a) of Section 21.00 of this article. In the case ofpersons acting as agents or brokers for another person, the term gross receipts includes and excludes, respectively, those receipts that are included and excludedunder Subdivision 6. of Subsection (c) of Section 21.49, Professions and Occupations; provided, however, that with regard to a person engaged in business as aTravel Agency the cost of transportation, tours, lodging facilities, food, entertainment, and other similar accommodations or services shall be deemed to be the legalobligation of the recipient.

SEC. 21.49. GROSS RECEIPTS FUND CLASS 9. (Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in business conducting Auto Parks, Health Maintenance Organizations, Any Trade, Calling, Occupation, Vocation, Profession orother means of livelihood, as an independent contractor and not an employee of another, and not specifically taxed by other provisions of this article, Tax Rate F, asset forth in Section 21.33(f), shall be applicable.

(a) AUTO PARK. Auto Park means engaged in the business of conducting any automobile parking place, storage lot or storage place where motorvehicles are parked or stored, and a charge is made directly or indirectly for the parking or storage.

(b) HEALTH MAINTENANCE ORGANIZATIONS. Health Maintenance Organization means engaged in business arranging for the provisionof health care services to subscribers or enrollees, or to pay for or to reimburse any part of the cost for those services, in return for a prepaid or periodiccharge paid by or on behalf of the subscribers or enrollees.

1. For the purposes of this section, gross receipts of a Health Maintenance Organization, which are attributable to a place of business withinthe City, shall be apportioned by using the total cost method to determine the amount of gross receipts that are subject to tax. The total cost methoduses a ratio to derive a percentage that is multiplied by the total gross receipts. The numerator of the ratio is the total in-City costs. The denominatorof the ratio is the sum of the total in-City costs and the total out-of-City costs. The percentage derived by dividing the numerator by the denominatoris multiplied by the total gross receipts to determine the amount of gross receipts that are subject to tax. Total costs shall include a HealthMaintenance Organization's payroll and related costs, property and related costs, and contract health care provider costs, incurred within and withoutthe City.

2. The apportionment formula set forth in Subdivision 1. shall be applicable to all tax years not barred by the statute of limitations onJanuary 1, 1998. Notwithstanding the foregoing, no person shall be entitled to a refund for any tax year prior to 1998, due to the application of theapportionment formula set forth in Subdivision 1. In computing any person's tax liability due for tax years prior to 1998, offsets of applicable creditsnot barred by the statute of limitations shall be allowed before determining the total tax due.

3. The Director of Finance shall levy an assessment pursuant to Section 21.16 of this article in the amount of the underpayment against anyperson who has underpaid tax for any tax year prior to 1998, to which the apportionment formula set forth in Subdivision 1. is applicable.

4. Notwithstanding the provisions of Section 21.05 of this Code, no penalty shall apply, and interest shall accrue at the rate equal to theannualized rate of return on the general pool earned by the City Treasurer for the calendar year prior to the tax year involved, on any underpaymentdescribed in Subdivision 3.

5. No interest described in Subdivision 4. shall accrue during the period commencing on January 1, 1997, and ending on June 30, 1998.

6. Notwithstanding the provisions of Section 21.05 of this Code, the tax under this section for the 1998 tax year shall not be delinquent untilJuly 1, 1998, and prior to that date, no penalty shall apply and no interest shall accrue.

(c) PROFESSIONS AND OCCUPATIONS.

1. Professions and Occupations means a person engaged in any trade, calling, occupation, vocation, profession or other means of livelihood,as an independent contractor and not as an employee of another, and not specifically taxed by other provisions of this article.

2. A person engaged in more than one trade, calling, occupation, vocation, profession or other means of livelihood embraced within thissection shall consolidate all gross receipts and shall be issued one registration certificate covering all these activities. Any person engaged in anyactivities embraced within this section, in addition to activities covered by any other section of this article, shall obtain separate registrationcertificates for the activities covered by those other sections.

3. As used in this section, the term "gross receipts" does not include:

(i) Receipts from a trade, calling, occupation, vocation, profession or other means of livelihood, which this City is prohibited fromtaxing under the Constitution or laws of the United States, or under the Constitution or laws of the State of California;

(ii) Receipts of community chests, funds, foundations or corporations organized and operated for religious, hospital or charitablepurposes, not conducted for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual;

(iii) Receipts of non-profit educational institutions of collegiate grade, defined here to mean institutions incorporated as colleges orseminaries under the laws of the State of California, which require for regular admission, the completion of a four-year high school course, orits equivalent, and which confer upon their graduates at least one academic or professional degree, based on a course of at least four years inliberal arts and sciences, or on a course of at least three years in professional studies such as law, theology, education, medicine, pharmacy,architecture, fine arts, commerce or journalism; receipts of non-profit secondary schools which are duly accredited by the University ofCalifornia; and receipts of non-profit elementary schools in which instruction is given to students in the pre-primary and primary grades inthe several branches of studies required to be taught in the public schools of the State of California;

(iv) Receipts of Rotary, Kiwanis and Lions Clubs, non-profit automobile clubs, Chambers of Commerce, and other communityservice organizations; also receipts of trade associations such as Merchants Plumbers Association, Merchants and Manufacturers Associationand labor organizations;

(v) Receipts of:

a. Railroad companies including street railways, defined here to include interurban electric railways;

b. Sleeping car, dining car, drawing-room car, and palace car companies, refrigerator, oil, stock, fruit and other car-loaningand other car companies operating upon railroads in this City;

c. Companies doing express business on any railroad, steamboat, vessel in this City;

d. Telegraph and telephone companies;

e. Companies engaged in the transmission or sale of gas or electricity.

(vi) Receipts of persons acting as agents or brokers for other persons to be paid over to those other persons, or to pay for those otherpersons' legal obligations, or as reimbursements for sums advanced by the agent for those other persons' legal obligations, or to be invested onbehalf of those other persons. Notwithstanding the foregoing, however, the term "gross receipts" includes but is not limited to:

Receipts of any person received as commissions or fees earned, or charges of any character made or compensation of anycharacter received, for the performance of any service by that person or any of that person's employees;

Receipts of any person received as partial or full compensation or reimbursement for salaries, payroll taxes, free benefits and anyand all similar expenses for persons who are employees of that person under the criteria set forth in Division 4, Part 1, Chapter 2,Article 2 of the Labor Code of the State of California as effective on July 1, 1976.

Receipts of any person received as partial or full compensation or reimbursement for equipment, supplies, utilities, or other itemsor services acquired by that person in that person's name and used or consumed in the performance of services subject to tax under thissection.

Provided, further, that any agent or broker dealing in stocks or other similar written instruments evidencing the right to participate in theassets of any business, or dealing in bonds or other evidences of indebtedness, who also deals in that property as a principal, shall include thegross receipts by which the tax is measured the amount of his trading profits resulting from these dealings. No deduction from receiptsattributable to trading as a principal shall be made unless the deduction is provided for under Subsection (a) of Section 21.00 of this article.

(vii) Receipts from the publication and sale of newspapers, magazines and other periodicals regularly issued at average intervals notexceeding three months. The exclusion contained in this paragraph shall apply only to business tax periods commencing on or after January1, 1984.

(viii) Receipts derived by a radio or television studio, station or network business from the production or broadcasting of local ornetwork radio or television programs or advertising materials, including but not limited to the furnishing of services, program elements orfacilities in connection with the production or broadcasting; provided, however, that nothing in this paragraph shall exempt any person fromthe tax imposed under Section 21.109 or exclude from the measure of the tax any receipts derived by any person from the operation of atelevision system where the viewing audience pays a fee to view the broadcast; provided, further, that nothing in this paragraph shall beconstrued as entitling any studio, station or network business to engage in a business subject to tax under Section 21.42, Wholesale Sales, orSection 21.47, Retail Sales, or Section 21.46, Personal Property Rental, without paying the tax required in those sections. The exclusioncontained in this paragraph shall apply only to business tax periods commencing on or after January 1, 1984.

(ix) Receipts of a person acting as a real estate salesman as that term is defined in Section 10132 of the California Business andProfessions Code.

(x) Receipts (whether considered in total or measured by cost of operations in the City or any other proxy) of a mutual fund that isregistered under the Investment Company Act of 1940, as amended (15 U.S.C. § 80a-1 to 80b-2), as an open-end management investmentcompany provided that it qualifies as a Regulated Investment Company under Subchapter M of the Internal Revenue Code of 1986, asamended (26 U.S.C. § 851) (the "IRC"). However, Receipts of a mutual fund that fails to qualify under Subchapter M or of a mutual fund thatreceives more than ten percent of its gross income from other than qualifying sources as described in section 851(b)(2) of the IRC shall not beexcluded under this paragraph. The exemption for qualified mutual funds contained in this paragraph shall apply in full only to business taxperiods commencing on or after January 1, 2014, and shall be phased in as follows: For business tax periods commencing on or after January1, 2012, and before January 1, 2013, said Receipts shall be taxed at 2/3 of the rate set forth in Section 21.33(f), and for business tax periodscommencing on or after January 1, 2013, and before January 1, 2014, said Receipts shall be taxed at 1/3 of the rate set forth in Section21.33(f). (Added by Ord. No. 181,951, Eff. 1/8/12.)

4. When the gross receipts are derived from or attributable to activities engaged in within and without the City, gross receipts shall beallocated in a manner that is fairly calculated to determine the amount of gross receipts derived from or attributable to engaging in business in theCity. This allocation shall be made on the basis of payroll, value and situs of tangible property, general expense, or by reference to any of these orother factors, or by another method of allocation that will fairly determine the amount of gross receipts derived from or attributable to engaging inbusiness in the City. Gross receipts derived from isolated or occasional transactions at places outside the City but within the State of California,where the registrant is not regularly engaged in a course of business transactions shall be deemed to be gross receipts derived from engaging inbusiness in the City. Gross receipts derived from or attributable to sources within this City include: (a) gross receipts from tangible or intangibleproperty located or having situs in this City; and (b), when not contrary to law, gross receipts from any activities carried on in this City regardless ofwhether carried on in interstate, intrastate or foreign commerce.

5. Allocation formulae designed to carry into effect the purpose of this subsection shall be adopted by the Director of Finance by rules andregulations. The Director of Finance is hereby authorized, in the application to individual cases of the rules and regulations and the formulae theycontain, to make any modifications in formulae that may be necessary to carry out the intent of this subsection. If the Director of Finance reallocatesgross receipts upon his or her examination of any return, he or she shall, upon the written request of the registrant, disclose to him or her the basisupon which the reallocation has been made.

SEC. 21.50. TAXATION OF MEDICAL MARIJUANA COLLECTIVES. (Added by Ord. No. 181,638, Eff. 4/18/11.)

(a) No registration certificate or permit issued under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code, or the payment of any tax requiredunder the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as authorizing the conduct or continuance of any illegal business or of alegal business in an illegal manner. Nothing in this section implies or authorizes that any activity connected with the distribution or possession of cannabis is legalunless otherwise authorized and allowed by California and federal law. Nothing in this Section shall be applied or construed as authorizing the sale of marijuana.

(b) Every person engaged in operating or otherwise conducting a medical marijuana collective not otherwise specifically taxed by other business taxprovisions of this Chapter, shall pay a business tax of $50.00 for each $1,000.00 of gross receipts or fractional part thereof.

(c) For purposes of this section, a "medical marijuana collective" means any activity regulated or permitted by Article 5.1 of this Code or Health and SafetyCode sections 11362.5 et seq., that involves planting, cultivating, harvesting, transporting, dispensing, delivering, providing, manufacturing, compounding,converting, processing, preparing, storing, packaging, or testing any part of the marijuana plant for medical purposes.

(d) For purposes of this section, "gross receipts" includes all amounts that would be considered gross receipts under section 21.00, including withoutlimitation:

(i) Membership dues;

(ii) The value of in-kind contributions;

(iii) Reimbursements provided by members, regardless of form; and

(iv) Anything else of value obtained by a medical marijuana collective.

(e) All taxpayers subject to this section must pay the full tax imposed by this section regardless of any rebate, exemption, incentive, or other reduction setforth elsewhere in the Municipal Code, except as required by California or Federal Law. No provision in the Municipal Code can lower the tax rate set forth in thissection or otherwise reduce the amount of taxes paid hereunder unless the provision specifically states that the reduction applies.

(f) The City Council may impose the tax authorized by this section at a lower rate and may establish exemptions, incentives, or other reductions asotherwise allowed by the Charter and California law. No action by the Council under this paragraph shall prevent it from later increasing the tax or removing anyexemption, incentive, or reduction and restoring the maximum tax specified in this section.

SEC. 21.53. AMUSEMENT PARK. (Amended by Ord. No. 140,833, Eff. 9/28/70, Oper. 1/1/71.)

For every person engaged in the business of conducting an amusement park, the tax shall be $923.83 per quarter. (Amended by Ord. No. 166,204, Eff.10/11/90, Oper. 1/1/91.)

For the purpose of this section, an amusement park shall mean any grounds or enclosure wherein concessions and adult rides of a permanent nature and havinga fixed location are situated and shows or exhibitions are presented, shown, staged, or offered to the public.

For the purpose of this section, adult rides shall be defined to include any Ferris wheel, scenic railway, merry-go-round, swing, or similar device offered for theamusement of the public for a fee or charge and not of a miniature type intended primarily for the use of children; and, concession shall be defined to include anypermanent booth or stand or any space, court or area at or in which any game or test of skill, science or amusement is offered and at or in which the public ispermitted or invited to participate for a fee or charge. Concessions shall not include coin-operated games of skills, science or amusement.

SEC. 21.55. AUCTIONEER. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every individual person who as an employee or as an independent contractor engages in the business of auctioneer, the tax shall be $886.88 per year orfractional part thereof.

SEC. 21.56. AUTO PARK (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.59. BASEBALL, FOOTBALL, ETC. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.62. BILLIARDS, ETC.

For every person engaged in the business of conducting or operating any pool or billiard room, or who for a fee or charge of any kind lets to players the use ofany pool table, billiard table or similar device, or who keeps any such table or device available for such use, the tax shall be $106.43 per year for each table ordevice, whether used or not, which is kept upon the premises. This section shall apply regardless of whether the table is maintained as an incident to the conduct oroperation of a social or athletic club, or as an adjunct of any other private institution or activity, if a charge is imposed for the use thereof. (First SentenceAmended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

SEC. 21.63. AMUSEMENT MACHINES.

(Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every person who lets or permits, upon premises over which he has control, the use or operation of any amusement machine, device, game or apparatus,except such machines, devices, games or apparatus as are described and referred to in Sections 21.64 or 21.70 of this article, and the operation or use of whichresults from, or is permitted or allowed by, insertion of any coin, slug or token of value into the machine, device, game or apparatus, or any device attached thereto,or by the payment of any fee or fees, the tax shall be $22.17 per year or fractional part thereof for each such machine, device, game or apparatus, whether or notsuch person is the owner or such machine, device, game or apparatus.

SEC. 21.64. COIN-OPERATED PHONOGRAPHS AND MUSIC MACHINES.

(a) For every person who lets or permits, upon premises over which he has control, the use of any coin-operated phonograph, television instrument, radioor other device for the playing or furnishing of music or other programs, the operation of which results from the insertion of a coin, slug or token of value, whetherplaced or inserted directly into such machine, or into a device causing its operation, the tax shall be $22.17 per year or fractional part thereof for each such machineor device, whether or not such person is the owner of such machine or device. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

(b) The tax imposed under this section shall not apply to a person letting or permitting the use of any such device in any room used solely for dwellingpurposes and which was installed for the use of the occupants thereof; but a person engaged in the business of maintaining or operating any such coin-operatedmachine installed for use by occupants of dwelling quarters, shall be taxed under the provisions of Sec. 21.65.1.

SEC. 21.65. VENDING MACHINES. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.65.1. COIN-OPERATED SCALES AND SERVICE MACHINES. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(a) For every person engaged in the business of operating, maintaining or letting the use of any coin operated scales, weighing device, baggage checkingdevice, radio, television, or any other coin-operated machine or device, and not otherwise specifically taxed or specifically exempted from tax under any othersection of this article, whether or not of the same general character as those specifically enumerated here, which renders any service or furnishes any program orinformation in return for a coin or token of value and is installed or maintained for profit or gain, the tax shall be $22.17 per year or fractional part for each machineor device.

(b) Except as otherwise provided in this section, each coin-operated machine or device described in Subsection (a) that is operated, maintained or usedwithin this City shall have conspicuously stamped upon it or affixed on it for identification purposes, the name and address, Business Tax Registration Certificationnumber, and the telephone number, if any, of the owner or operator. The identification shall be provided by the owner or operator of the machine or device, at his orher expense, notwithstanding the provisions of Section 21.06(b) to the contrary, and shall be removed from, the machine or device by the owner or operator whenthe authority to use the machine or device is transferred to another person, whether by sale, lease, license or otherwise.

(c) Exemptions. Nothing contained in this section shall be construed to require the payment of any business tax for any coin-operated machine or deviceused in the operation of any automatic telephone, or any coin box for the receipt of fares on any carrier, or any coin receiving device the use of which is merelyincidental to the conduct of a business operating under any franchise or specifically taxed by other provisions of this article.

SEC. 21.70. BOWLING ALLEY, SKEE-BALL SHUFFLEBOARD, ETC. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every person engaged in the business of operating any bowling alley, ping-pong court, skee-ball machine, alley or court, or any shuffleboard table or court,or who, in the conduct of any business, uses, operates or maintains any such alley, court, table or machine, or rents or lets the use of any such alley, court, table ormachine for the purpose of being used in playing any of the aforementioned games, the tax shall be $54.99 per year or fractional part thereof for each such alley,court, table or machine, provided that nothing in this section or in this article shall require the payment of a tax for engaging in the activities set forth in this sectionwhen engaged in by a bona fide social club which is organized for social purposes and maintains or operates the facilities required for the members of the club as anincident to the purpose of the club and not as a primary purpose thereof.

SEC. 21.74. CIRCUSES.

(a) “CIRCUS” shall mean an exhibition or entertainment at which feats of horsemanship, acrobatic feats and trained, or wild animals are exhibited ordisplayed in the City of Los Angeles to which exhibition or entertainment an admission fee is charged, and which exhibition or entertainment is conducted by aperson having no regular established place of business in the City of Los Angeles for the exhibition thereof.

(b) (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) For every person engaged in the business of conducting a circus or similar exhibition,the tax shall be:

For a seating capacity of 11,000 or more, $6,652.00 for the first day, and $3,548.00 for each additional day;

For a seating capacity of 8,000 or more, and less than 11,000, $4,434.00 for the first day, and $2,661.00 for each additional day;

For a seating capacity of 5,000 or more, and less than 8,000, $2,661.00 for the first day, and $1,552.00 for each additional day;

For a seating capacity of 1,000 or more, and less than 5,000, $1,552.00 for the first day, and $887.00 for each additional day;

For a seating capacity of less than 1,000 and more than 300, $222.00 for the first day, and $133.00 for each additional day;

For a seating capacity of 300 or less, $133.00 for the first day, and $89.00 for each additional day.

(c) Notwithstanding the provisions of Subsection (b), for every person conducting a circus or similar exhibition where the principal performance takesplace in a permanent structure such as a theatre, arena, stadium, auditorium, amphitheatre or similar structure, the tax shall be $887.00 per day. (Amended by Ord.No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

SEC. 21.75. SIDE SHOWS, CARNIVALS, CONCESSIONS. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(a) For every person engaged in the business of conducting a side show, or an after show to the circus, where a separate fee of $0.75 or less, is charged,received or collected, the tax shall be $44.34 per day; where the fee charged, received or collected amounts to more than $0.75, but less than $1.50, the tax shall be$88.69 per day; where the fee charged, received or collected, is $1.50 or more the tax shall be $177.38 per day.

(b) For every person operating or conducting any carnival, the tax shall be $88.69 for each concession for the first day of the carnival and $44.34 for eachconcession for each additional day.

(c) For the purpose of this section, a "carnival" means any fair, festival or like activity of a temporary nature having a concession or concessions. A"concession" is defined to include any booth or stand or any space, court or area at, or in which, any game or test of skill, science or amusement is offered and at orin which the public is permitted or invited to participate for a fee, charge or donation.

(d) When the carnival is sponsored solely by a religious, charitable, educational, civic, veteran or other non-profit benevolent organization, or by a group ofthese organizations, the organization or group shall be deemed to be the person operating or conducting the carnival. Provided, however, that in the event anyperson other than this organization or group receives any proceeds or personal gain or profit by operating or participating in the operation of any concession in, at oradjacent to the carnival on behalf of himself or herself or on behalf of any person other than the sponsoring organization or organizations, that person shall bedeemed to be the person operating or conducting the carnival.

(e) In the case of more than one non-sponsoring operator or conductor, each shall be jointly and severally liable and responsible for making application forthe business tax registration certificate and for payment of the business tax for the carnival; provided, however, if one non-sponsoring operator or conductor has alsorented, leased or otherwise furnished for use in the carnival equipment as concession booths or stands, or games or tests of skill, science or amusement, that personshall be deemed to be the operator or conductor of the carnival; and if more than one non-sponsoring operator or conductor has rented, leased or furnishedequipment to the carnival, that person whom the Director of Finance, after full investigation of all the facts, determines to be the one who has leased, rented orfurnished the greater amount of equipment shall be deemed to be the operator or conductor of the carnival.

(f) Where the operator or conductor of the carnival is a religious, charitable, educational, civic, veteran or other non-profit benevolent organization, or agroup of these organizations, and the net proceeds of the carnival are to be used exclusively for religious, charitable, benevolent, educational or civic purposes, theoperator or conductor shall be entitled to a tax exempt registration certificate upon application and qualification for the certificate as provided in this subsection.

The application for this exemption shall be made in the manner provided in Section 21.22 of this article not less than 30 calendar days prior to the starting dateof the carnival; provided however, an application for this exemption, which is not filed within the time period prescribed here, may be accepted by the Director ofFinance upon a showing that the failure to file a timely application was not a result of an intentional disregard of the prescribed statutory provisions. The Board ofPolice Commissioners shall investigate as provided in Section 21.22 and shall forward its report to the Director of Finance at least 16 calendar days prior to thestarting date of the carnival in all cases where the application has been timely filed; otherwise the report shall be forwarded within 16 calendar days subsequent tothe filing of the application for the exemption. If the report certifies that the sponsorship of the carnival and the use to be made of the net proceeds meet therequirements of this subsection for a tax exempt registration certificate, and if all other charges, fees and taxes required to be paid to the Director of Finance byreason of the operation of the carnival or activities conducted in connection with the carnival have been paid, the Director of Finance shall issue a tax exemptregistration certificate. Any application not reported upon by the Board of Police Commissioners within the time limits prescribed here shall be deemed to beapproved and the Director of Finance may issue the tax exempt certificate in lieu of payment of the tax.

If at any time the carnival or any part of it is conducted in a manner which, had it been disclosed in the application for the exempt certificate approved by theBoard of Police Commissioners, would not have entitled the organization or organizations conducting the carnival to a tax exempt registration certificate, or if thenet proceeds from the carnival are not used for the purposes stated in this subsection, if any tax exempt registration certificate so issued shall be void and the fullamount of the business tax for the carnival shall be immediately due and payable to the City, and no other tax exempt registration certificate for a carnival shall be

issued to the sponsoring organization or organizations until the tax has been paid.

(g) No business tax registration certificate and no business tax shall be required for any religious, charitable, educational or other non-profit benevolentinstitution to operate or conduct a carnival held within and upon buildings or grounds owned or occupied by the institution where none of the rides set forth inSection 21.94 are operated in, at or adjacent to the carnival and the concessions of the carnival are operated exclusively by and for the entertainment or benefit ofthe members of that institution and the net proceeds derived from the concessions are not used for the purpose of private gain to any individual but are used whollyfor the benefit of the organization or for charitable or benevolent purposes; provided, that no advertising for the carnival is placed, exhibited, shown, or otherwisepermitted outside the premises of the buildings or grounds and the non-member public is not invited to participate in or attend the carnival.

(h) No tax shall be required for any person conducting or operating a carnival at any fair, festival or like activity of a temporary nature conducting oroperated by a California Agricultural District.

(i) For every person engaged in the business of conducting a circus procession or circus parade, and not having a registration certificate for conducting,managing or carrying on a circus within the limits of the City of Los Angeles, the tax shall be $4,434.00 for each procession or parade.

SEC. 21.78. COLLECTION AGENCIES. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.79. COMMISSION BROKERS. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.80. INDEPENDENT TELEMARKETING AGENCY. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.83. DANCE HALL.

(a) “DANCE HALL” shall mean any place where the business of holding or conducting public dances is regularly carried on provided that nothing in thissection contained shall be deemed or construed to require the holder of a registration certificate to conduct the business of a public dance hall to procure anyadditional registration certificate to conduct a dancing academy, provided that such dancing academy is conducted at the same location and under the samemanagement as the public dance hall.

(b) (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) For every person engaged in the business of conducting any public dance hall, the taxshall be:

For 1,000 square feet or less of dance floor area in such dance hall, $133.05 per quarter;

Over 1,000 square feet and not more than 2,000 square feet, $254.90 per quarter;

Over 2,000 square feet and not more than 3,000 square feet, $365.75 per quarter;

Over 3,000 square feet and not more than 4,000 square feet, $465.60 per quarter;

Over 4,000 square feet and not more than 5,000 square feet, $554.30 per quarter;

Over 5,000 square feet and not more than 6,000 square feet, $631.80 per quarter;

Over 6,000 square feet and not more than 7,000 square feet, $698.35 per quarter;

Over 7,000 square feet and not more than 8,000 square feet, $753.85 per quarter;

Over 8,000 square feet and not more than 9,000 square feet, $798.20 per quarter;

Over 9,000 square feet and not more than 10,000 square feet, $831.35 per quarter;

Over 10,000 square feet and not more than 11, 000 square feet, $853.55 per quarter;

Over 11,000 square feet, $853.55 per quarter, plus $11.00 per quarter for each additional 1,000 square feet or fractional part thereof.

SEC. 21.85. PUBLIC DANCE.

(Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every person conducting or staging any public dance, whether for profit or not, to which the public at large is admitted or in which the public at large isallowed to participate, the tax shall be $177.38 per day.

SEC. 21.94. RIDES. (Amended by Ord. No. 174,241, Eff. 11/3/01, Oper. 1/1/01.)

(a) For every person engaged in the business of conducting or operating a ferris wheel, scenic railway, or any ride by boat or car for the amusement of thepublic, any merry-go-round, swing or similar device, the tax shall be $443.44 per year or fractional part thereof.

(b) The provisions of this section shall not apply to the holder of a registration certificate issued in connection with the conduct of an amusement parkunder other sections of this article.

(c) No tax shall be required for any person conducting or operating a ride at any carnival, fair, festival or like activity of a temporary nature conducted oroperated by a California Agricultural District. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.98. OFFICE COMMERCIAL BUILDINGS, ETC., RENTALS. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.98.1. SWAP MEET OPERATOR. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.98.2. ANTIQUE SHOW AND COLLECTORS’ EXCHANGE SHOW PROMOTER. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.99. RENTING ACCOMMODATIONS. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.102. LAUNDRY, CLEANING AND DYEING AGENT, COLLECTOR, LINEN SUPPLY, SHOE REPAIR. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.108. MONEY LENDERS. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(a) Subject to the exceptions stated here, for each person engaged in the business of lending money, advancing credit or lending credit, or arranging for theloan of money or advancing of credit or lending of credit, for and on his or her own behalf or on behalf of any other person as principal, agent or broker, whethersecurity of any kind is taken for the loan or advance or not, or purchasing or discounting or arranging for the purchase or discounting of any obligation or evidenceof money due or to become due, whether the obligation or evidence is secured or guaranteed or not, and whether the person so purchasing or arranging for thepurchase of items and acts mentioned above, as principal, agent or broker, the tax shall be $2,660.63 per year.

(b) The tax imposed under the provisions of Subsection (a) shall not apply to the business of lending money or advancing credit or arranging for the loanof money or the advancing of credit as principal or agent, where the obligation to repay the money lent or debt incurred or to compensate for the advance of credit issecured by a lien on real property, or some interest in real property; nor shall the provisions of this section apply to the business of purchasing, either as principal oragent, any debt or evidence of debt secured by any lien upon real property; nor shall the provisions of this section apply to any transaction involving the purchase orsale of real property. All persons engaged in businesses as are described in this subsection shall be subject to tax under Section 21.49, Professions and Occupations.

(c) The tax imposed under the provisions of Subsection (a) shall not apply to a person who, in the conduct of another business in the City, engages in abusiness of the kind described in Subsection (a) solely with customers or suppliers of that other business; nor shall the tax apply to a person engaged in this type ofbusiness, whether or not the relation of customer or supplier exists, when the person confines the business dealings to other persons who are his employees, stand inthe relation of parent or subsidiary to him, are so constituted as to have substantially common ownership with him or her, or are employees of any person who is hisparent or subsidiary or has substantially common ownership with him or her; provided, however, if the other business is subject to a tax under this article measuredby gross receipts, all interest and other charges received as a result of the activity described in Subsection (a) shall be included in the gross receipts by which the taxelsewhere imposed by this article is measured; and if the other business is not subject to a tax measured by gross receipts, or if there is no other business, he or sheshall pay a tax under the provisions of Section 21.49, Professions and Occupations, for engaging in the kind of activity described in Subsection (a).

SEC. 21.109. MOTION PICTURE, TELEVISION AND RADIO PRODUCERS. (Title amended by Ord. No. 167,416, Eff. 12/27/91, Oper. 1/1/84.)

(a) (Amended by Ord. No. 167,416, Eff. 12/27/91, Oper. 1/1/84.) For the purposes of this section a motion picture, television, or radio producer is aperson who engages in the business of producing motion pictures, television programs, radio programs or advertising material for such media, including pictures orprograms in which animation is used. Said businesses include, but are not limited to, the development of a story, whether based on fact or fiction, thephotographing of the story or program, whether by means of photographic film, magnetic tape, or other device, the recording of the program, and the cutting,scoring, editing, and final preparation of the picture, program or commercial for release or viewing, and when performed by a person engaged in the foregoingactivities also includes either or both of the following:

1. The lending by a motion picture, television, or radio producer of the services of employees for which the producer has contracted to one or moreother producers; and

2. The furnishing of motion picture, television or radio studio facilities to other such media producers where the facilities include, in addition tophysical equipment, the services of technicians such as cameramen, soundman, carpenters, electricians and set decorators.

Every person engaged in the business of being a motion picture, television, or radio producer shall pay a tax in the amount provided in Subsection (c). Themeasure of the tax in each instance shall be the total of the following sums: the gross cost of production of motion pictures, television programs, radio programsand advertising materials; the gross receipts received by the producer in return for the lending of the services of employees as described herein; and the grossreceipts received by the producer in return for the furnishing of studio facilities in the manner described herein.

(b) Every person engaged in the business of reconstructing motion pictures, television programs or commercials by synchronizing pictures with sound, ormaking or producing sound scores, other than a sound score made or produced by a motion picture, television or radio producer in the preparation for release of aproduction, shall pay a tax measured by the gross cost of the work done in the amount provided in Subsection (c). (Amended by Ord. No. 167,416, Eff. 12/27/91,Oper. 1/1/84.)

(c) The taxes imposed for the privilege of engaging in the businesses described in this section shall be $145.00 per year or fractional part thereof for thefirst $5,000,000.00 of the measure of tax, plus $1.30 per year for each additional $1,000.00 of the measure of tax or fractional part thereof in excess of$5,000,000.00, provided that the maximum tax shall be $9,245.00 for all measures of tax greater than $12,000,000.00. (Amended by Ord. No. 181,477, Eff.1/21/11.)

(d) Any motion picture, television, or radio producer as defined in Subsection (a) of this section and subject to the tax imposed by this section, shall not besubject to tax under Section 21.45 of this article for production activity. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.124. OIL WELLS. (Repealed by Ord. No. 171,411, Eff. 12/22/96, Oper. 1/1/96.)

SEC. 21.141. WAREHOUSE – STORAGE OF GOODS. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.142. STEVEDORES. (Added by Ord. No. 155,060, Eff. 5/10/81.)

(a) For every person engaged in the business of stevedoring from a fixed place of business within the City of Los Angeles, the tax shall be $106.43 peryear or fractional part thereof, plus $8.87 per year or fractional part thereof for each employee, plus (i) $177.38 per year or fractional part thereof if there are morethan 24 and less than 100 employees, or (ii) $302.72 per year or fractional part thereof if there are more than 99 employees. (Amended by Ord. No. 166,204, Eff.10/11/90, Oper. 1/1/91.)

(b) “Stevedoring” shall mean the business of loading and unloading cargo on and from vessels supplying and supervising labor and supplying andoperating equipment for such loading and unloading, and performing port terminal operations such as management consulting and data processing in connectionwith such loading and unloading.

(c) For the purpose of Subsection (a) of this section “employees” shall mean the sum of the number of individuals who are permanently employed by suchperson within the City of Los Angeles as of the 15th day of each of the 12 calendar months immediately preceding the due date of the tax, divided by 12, with anyremainder constituting another employee.

(d) Engaging in the business of stevedoring without a fixed place of business within the City shall not subject any person to taxation under the provisionsof Section 21.49, defined as Professions and Occupations, of this article. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.143. TUGBOAT AND BARGE OPERATORS.

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.147. THEATRE. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.166. MERCHANDISE WHOLESALE SELLING. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.167. MERCHANDISE – RETAIL SELLING. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.167.1. SALES OF FIREARMS AND AMMUNITION. (Added by Ord. No. 170,729, Eff. 11/20/95. Oper. 1/1/96.)

(a) For every person selling any firearms and ammunition, the tax shall be $106.43 per year or fractional part thereof for the first $18,000.00 or less ofgross receipts, plus $5.91 per year for each additional $1,000.00 of gross receipts or fractional part thereof in excess of $18,000.00.

(b) For the purpose of this section:

1. The term “Firearms” shall be defined as any pistol, revolver, rifle, shotgun or other device, designed to be used as a weapon, from which aprojectile is expelled through a barrel by the force of an explosion or any other form of combustion, or any device which is capable of being altered so as toexpel a projectile in such manner.

2. The term “Ammunition” shall be defined as any projectile designed to be expelled through the barrel of a firearm by the force of any explosionor other form of combustion.

SEC. 21.168.1. OUT OF STATE SALES. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

Nothing defined in Section 21.41, as Multimedia Business, in Section 21.42, as Wholesale Sales or in Section 21.44, as Retail Sales, shall be construed torequire the inclusion in the computation of the amount of the tax due under these sections the gross receipts of the sales of goods, which are shipped to thepurchasers of the goods by the seller to points outside of the State of California.

SEC. 21.168.2. SALE FOR CONVENIENCE.

Unless otherwise specifically provided, the phrase “selling goods, wares or merchandise” shall, whenever used in this article, in addition to any othermeaning established by law, be deemed to extend to and include in its application the serving or supplying of meals for a fee or charge; but sales of goods, wares ormerchandise by persons engaged in selling such articles shall not be considered as producing gross receipts to the extent that such sales are for convenience. A “salefor convenience,” as used in this section, is a sale of new goods, wares, or merchandise by a person engaged in selling such articles to another person engaged inselling like or similar kinds of articles.

(i) Where the primary purpose of the particular transaction of sale is to accommodate the purchaser rather than to make a sale in the ordinary courseof business;

(ii) Where, in the particular kind of business involved, a similar manner of dealing is frequent or customary in the circumstances under which theparticular sale is made; and

(iii) Where goods, wares or merchandise of like or similar kind and of substantially equivalent value to that which was sold is received inconsideration.

The following types of transactions are sales for convenience within the meaning of this section when the circumstances stated in Paragraphs (i), (ii) and (iii)are present:

(1) Transactions in which the seller conveys an article which is in short supply, or which, under the circumstances, cannot be obtained by thepurchaser through normal sources of supply in sufficient time to permit the purchaser to furnish an equivalent article to a prospective customer;

(2) Transactions in which, by reason of the seller’s more convenient location relative to a designated point of delivery, the purchaser agrees toreimburse the seller for delivering goods, wares or merchandise at that point to the purchaser’s customer in accordance with a contract of sale between the

purchaser and his customer;

(3) Transactions in which, as a matter of business practice, the form of a sale is arranged and entered into by the seller and the purchaser as asubstitute for or the equivalent of the transportation of the article or the payment of transportation charges on the article from the point of the delivery tosome other point;

(4) Transactions different in detail from those described in the three immediately preceding paragraphs of this section, but which the Director ofFinance has found and by rule determined to be of a kind whose primary purpose is to accommodate the purchaser rather than to make a sale in the ordinarycourse of business; of a kind which, in the particular kind of business involved, is frequent or customary in the circumstances under which a particular saleis made; and of a kind where goods, wares or merchandise of like or similar kind, and of substantially equivalent value to that which was sold is received asconsideration.

No sale shall be considered a sale for convenience within the meaning of this section unless it is of a kind described in Paragraphs (1), (2), (3) or (4) of thissection.

SEC. 21.168.3. CERTAIN SOLICITORS DEEMED EMPLOYEES. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

Any person who goes from place to place to solicit sales of goods, wares or merchandise of another person, or to sell and deliver the goods, wares ormerchandise of another person or his products exclusively, is deemed for the purposes of this article to be the employee of the other person and not liable forpayment of business tax for the sales or delivery, provided that the person deemed here to be the employer shall pay to the City all business tax measured by thegross receipts from the sales computed at the rate provided in Sections 21.42 or 21.44, whichever is applicable. The Director of Finance shall issue a RegistrationCertificate in the manner provided in this article to any person deemed in this section to be an employer who undertakes to pay business tax in the manner providedhere.

SEC. 21.168.4. EXEMPTION – TEMPORARY EXHIBITORS AT TRADESHOWS. (Added by Ord. No. 144,111, Eff. 12/31/72.)

(a) Nothing contained in Section 21.42, Wholesale Sales, in Section 21.44, Retail Sales, in Section 21.47, Commission Broker or Article 1.2 of Chapter 2relative to art and cultural shows, shall be construed to require the payment of a tax by any person operating a temporary exhibit at a bona fide trade show wherethe temporary exhibit does not exceed 14 days within any six-month period in a calendar year at any single trade show. (Amended by Ord. No. 178,101, Eff.1/9/07.)

(b) For the purpose of this section a bona fide trade show means an exhibition of products or services or both of a specified industry, presented foreducational purposes and industry improvement. Attendance and sales are limited to persons dealing in or using the products and services of the specific industry inthe conduct of a commercial enterprise.

Such shows are usually, but not necessarily, sponsored by trade associations or scientific societies for the advancement and improvement of the industry inwhich the society or association members deal. Technical or professional meetings are usually conducted concurrently with exhibits at such shows dealing insubjects concerning the particular industry.

SEC. 21.168.5. CERTIFIED PRODUCERS DEEMED EMPLOYEES. (Added by Ord. No. 155,562, Eff. 8/9/81.)

(a) Any person who is a certified producer and who sells goods, wares or merchandise at a certified farmer's market is deemed for the purposes of thisarticle to be the employee of the operator of the certified farmer's market and not liable for payment of business tax for the sales provided that the operator shall payto the City business taxes measured by the gross receipts from the sales computed at the rate provided in Section 21.44. The Director of Finance shall issue aregistration certificate in the manner provided in this article to any operator deemed in this section to be an employer who undertakes to pay business taxes in themanner provided here. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(b) For the purpose of this section a certified producer shall mean a person authorized by the County Agricultural Commissioner to sell directly toconsumers at a certified farmer’s market products produced upon land which is controlled by such person.

(c) For the purpose of this section a certified farmer’s market shall mean a location approved by the County Agricultural Commissioner where productsmay be sold by certified producers directly to consumers and which is operated by one or more certified producers, a nonprofit organization or a local governmentagency.

SEC. 21.169. CHRISTMAS TREES. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of selling or offering for sale Christmas trees at retail, and not from a fixed place of business dealing in othercommodities and previously taxed under Section 21.44 of this article, the tax shall be $29.56 per quarter or fractional part.

SEC. 21.170. CHRISTMAS TREE LOT CLEAN-UP DEPOSITS.

If the lot, or portion thereof actually used for the sales operation, for the retail sale of Christmas trees pursuant to Subdivision 4 of Subsection A of Section12.22 of this Code, is not cleaned on or before the January fifth next following the cessation of the annual retail sale of Christmas trees to the satisfaction of theDepartment of Building and Safety, the City, through the Department of Public Works, shall undertake the necessary cleanup of the lot, or portion thereof, and thedeposit referred to in Paragraph (e) of Subdivision 4 of Subsection A of Section 12.22 of this Code or whatever portion thereof is necessary shall be retained by theCity to offset the cost of the City cleaning services. For the purpose of this section only, “cleaned” shall include, but not be limited to, the removal of all Christmastrees, temporary structures, trailers, fencing, light poles, tree limbs, sawdust, debris, trash, lumber, etc., used in conjunction with or existing as a result of theChristmas tree sales operation. Upon written request of the operator of the sale of Christmas trees, and upon the receipt of advice in writing from the Department ofBuilding and Safety that the lot of such operator has been cleaned to the satisfaction of the Department, the Director of Finance shall take steps to reimburse theunused portion of such deposit, if any, to the operator. (Added by Ord. No. 151,712, Eff. 11/24/78.)

SEC. 21.171. RETAILERS OF NEW PASSENGER MOTOR VEHICLES. (Added by Ord. No. 182,184, Eff. 8/20/12.)

(a) Notwithstanding the provisions of Section 21.44, all gross receipts from the retail sales of new passenger motor vehicles by a dealer of new passengermotor vehicles are exempt from taxation under this Article.

(b) For the purpose of this Section:

1. A "dealer of new passenger motor vehicles" is a person who acquires for resale new and unregistered passenger motor vehicles frommanufacturers or distributors of those motor vehicles. A "dealer of new passenger motor vehicles" must be subject to and comply with the provisions ofChapter 6 of Division 2 of the California Vehicle Code (i.e., the requirements of the New Motor Vehicle Board).

2. The term "motor vehicle" shall have the same meaning as that set forth for "motor vehicle" in California Vehicle Code Section 415, as of theeffective date of this Section.

3. This Section shall only apply to the sale of passenger vehicles. A "passenger vehicle" shall have the same meaning as that set forth for"passenger vehicle" in California Vehicle Code Section 465 as of the effective date of this Section. "Passenger vehicle" shall not include housecars,mobile homes, motorcycles, motor-driven cycles, motorized bicycles, motorized quadricycles, motorized scooters or similar motorized vehicles.

(c) This section and the tax treatment for retailers of new passenger motor vehicles shall be operative effective January 1, 2013, through the 2020 tax year.

SEC. 21.187. COMMON CARRIER BUS. (Title Amended by Ord. No. 178,101, Eff. 1/9/07.)

(a) For the purpose of this section the following words and phrases shall be defined as follows:

1. The word “bus” shall include motorbus, motor coach, trolley bus, omnibus, passenger stage, or similar vehicle using either a self–containedsource of power or power obtained from another source such as an overhead trolley system not operated upon fixed tracks or rails, and primarily designedfor the transportation of more than seven passengers, excluding the driver.

2. The word “operator” shall mean any person engaging in the business, either directly or indirectly, as a common carrier in the transportation ofpersons by bus, upon any street in this City.

3. The phrase “bus revenue mile” shall mean the operation, for one mile, of a bus then and there made available for use as a common carrier in thetransportation of persons or property for hire.

4. The phrase “base week” shall mean the third week in January, the third week in April, the second week in July, and the first week in October;provided that the Director of Finance may from time to time order that there be substituted in lieu of any of the four weeks hereinabove designated the weeknext preceding or next succeeding such designated week. In the event of any such order by the Director of Finance the operator shall be notified thereof atleast ten days prior to the first day of the substituted week. The word “week” means a Sunday and the six next succeeding days.

5. The phrase “gross receipts” shall have the same meaning as that set forth in Sec. 21.00(a) of this Code and shall include the total gross receiptsof the operator, together with the full cash value of any consideration received in a form other than cash from:

(i) The transportation of persons and property by bus, as a common carrier, and from advertising and all other privileges or services in, on,or by buses while being so operated, including receipts from the sale of tokens, tickets, and passes, and from all contracts by the terms of which the

operator agrees to furnish transportation by bus, as a common carrier, whether or not such transportation be actually furnished; and

(ii) The rental

(A) of any bus operated in this City as a common carrier;

(B) of property operated, installed, or maintained in any street in the City for use in connection with the operation of any bus as acommon carrier;

(C) from permitting others to use or occupy any part thereof; and

(D) from allowing to others any privilege whatsoever with respect thereto; provided that for any operator transporting passengers inareas outside this City, only that proportion of Item (i) shall be included, which the number of bus revenue miles operated in this City in thelast four consecutive base weeks, the latest of which terminates within the next preceding tax period, bears to the total number of bus revenuemiles operated in said base weeks.

(b) Every person engaged in the business of transporting persons as a common carrier for hire, by bus, upon or over any street in this City, which businessincludes the loading or discharging of passengers on the streets of this City, shall pay for each calendar year or portion thereof (or, if required by the Director ofFinance, for each calendar quarter or portion thereof) commencing January 1, 1971, a sum equal to 1.48% of the gross receipts of the next preceding tax period, butnot less than $14.78 per year or $3.67 per quarter, as the case may be. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

(c) The provisions of this section shall not apply to:

1. Any municipal corporation or other public entity.

2. The gross receipts derived from, or the bus revenue miles traveled by, any bus while being operated solely pursuant to any registration certificateissued under any other section of this article.

3. The business of operating busses in this City pursuant to a franchise granted by ordinance of this City, which franchise provides for payment tothis City of not less than 2-1/2% of the gross receipts. The exemption extended by this subsection shall apply to all such franchise operations commencingJanuary 1, 1947.

(d) If any subsection, sentence, clause, phrase or portion of this section is, for any reason, held to be invalid or unconstitutional by the decision of anycourt of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this section. The Council of this City hereby declares that itwould have adopted this section and each subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more subsections, sentences,clauses, phrases or portions be declared invalid or unconstitutional.

SEC. 21.188. CONTRACTORS. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in business as a contractor, the tax shall be $165.60 per year or fractional part for the first $60,000.00 or less of gross receipts, plus$1.09 per year for each additional $1,000.00 of gross receipts or fractional part in excess of $60,000.00; provided that every contractor having a fixed place ofbusiness in the City of Los Angeles shall pay, in addition to the tax computed in the manner set forth above, a further tax of $2.76 per year for each $1,000.00 orfractional part of all salaries, wages, fees and other compensation paid to his employees or consultants, other than legal or accounting consultants, for servicesrendered by the employees and consultants in the City of Los Angeles in connection with jobs and projects located outside the City.

1. The term "contractor" as used here means any person, except an owner who contracts for a project with another person who is licensed by theState of California as a contractor or architect or registered civil engineer acting solely in his professional capacity, who in any capacity other than as anemployee of another with wages as the sole compensation, undertakes to, or offers to undertake to, or purports to have the capacity to undertake to, orsubmits a bid to, or does himself or by or through others construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building,highway, road, railroad, excavation, or other structure, project, development or improvement, or to do any part of those actions, including the erection ofscaffolding, or other structures or works in connection with that work.

2. The meaning of the term "gross receipts," as used here, shall be that set forth in Section 21.00(a) and shall also include the total cost of the jobor project covered by the contract to which the contractor is a party, without deduction for subcontracts, and irrespective of whether the contract is one on afixed price or on a cost plus basis or one under the terms of which the contractor acts as agent for the owner. The term "gross receipts," however, shallinclude only receipts from jobs or projects located within the City limits of the City of Los Angeles.

SEC. 21.189.1. MISCELLANEOUS SERVICES. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.189.2. RADIO AND TELEVISION BROADCASTER. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.189.3. CHILD CARE PROVIDERS. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.189.4. MULTIMEDIA BUSINESSES. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.190. PROFESSIONS AND OCCUPATIONS. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.190.1. EXEMPTION.

Nothing in this article shall be construed to require the payment of a tax by any person for any period prior to January 1, 1977 by reason of such person havingengaged in business as a steamship agent; for any period prior to January 1, 1980 by reason of such person having engaged in business as a custom house broker; forany period prior to January 1, 1981 by reason of such person having engaged in business as a stevedore; or for any period prior to January 1, 1984 by reason of suchperson having engaged in business as a tugboat or barge operator. (Amended by Ord. No. 159,314, Eff. 9/29/84.)

SEC. 21.191. HEALTH MAINTENANCE ORGANIZATIONS. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.192. PERSONAL PROPERTY RENTAL. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.192.1. RENTAL – OUT OF STATE PROPERTY. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.193. SALE OF REAL PROPERTY. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of developing and selling real property in which the person has equity or title, the tax shall be $165.60 per year orfractional part for the first $60,000.00 or less of gross receipts, plus $2.76 per year for each additional $1,000.00 of gross receipts or fractional part in excess of$60,000.00.

1. Real Property Seller means a person engaged in the business of developing and selling real property in which the person has equity or title.

2. A person shall be deemed to be engaged in the business of Real Property Sales if the person:

(i) As a subdivider, as that term is defined in Section 11508 of the Business and Professions Code, has recorded a subdivision maprespecting the property sold in accordance with the Subdivision Map Act of California, provided, however, that a person filing or joining in the filingof a subdivision map for the sole purpose of accomplishing a street vacation shall not be considered a subdivider; or

(ii) Has prior to sale, divided the property held pursuant to the "lot-split" regulations of the Los Angeles Municipal Code (commencing atSection 17.50); or

(iii) Sells two or more pieces of real property within a calendar year and upon each of which a building was constructed or caused to beconstructed by the seller, provided the sales were within three years of the recordation by anyone of a subdivision map respecting the property soldpursuant to the Subdivision Map Act; or

(iv) Sells any real property upon which he has constructed or caused to be constructed an apartment house or commercial building, providedthe sale is either prior to or within three years after the issuance of a Certificate of Occupancy or its equivalent respecting the property sold.

3. For purposes of this section, the term "gross receipts" shall not include:

(i) proceeds realized from the sale of property:

a. through foreclosure; or

b. to an agency proposing to take the land under eminent domain proceedings; or

c. through the exercise of a power of sale contained in a deed of trust or mortgage; or

d. through bankruptcy; or

e. through assignment for the benefit of creditors; or

f. through court order; or

(ii) the unpaid balance on the date of sale of any encumbrance of record upon the property;

(iii) existing prior to the sale and remaining in existence between the same parties following the sale;

(iv) existing of record 180 days prior to the date of sale; or

(v) existing prior to the sale and with respect to which a deficiency judgment is prohibited under the provisions of California Code of CivilProcedure Section 580b, whether or not it is extinguished by reason of the sale.

4. No person shall engage in this business or perform any act required to be taxed under this section during any tax period without first obtaining aregistration certificate and paying a tax in the minimum amount of $165.00.

5. At the close of each tax period, the person shall file a statement with the Director of Finance setting forth the amount of gross receipts derivedfrom the business for that period, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be dueunder this article for the preceding expired tax period.

6. In the event the business is discontinued, dissolved or otherwise terminated before the close of the tax period, the required statement of grossreceipts shall then be filed, and any additional tax due under this section shall be paid on or before the close of business on the last day of the monthfollowing the month in which discontinuance, dissolution or termination occurred.

7. When any person's activities occurring both within and without the City contribute to the production of receipts from the business taxed underthis section, the person's gross receipts shall be apportioned in a manner that is fairly calculated to determine the amount of gross receipts derived from orattributable to engaging in business in the City. The apportionment shall be made on the basis of payroll, value and situs of tangible property, generalexpense, or by reference to any of these or other factors, or by another method of apportionment that will fairly determine the amount of gross receiptsderived from or attributable to engaging in business in the City. In the absence of substantial information to the contrary, 80% of the total gross receiptsshall be deemed attributable to activities conducted in the jurisdiction in which the subject real property is located and 20% of the total gross receipts shallbe deemed attributable to activities conducted in the jurisdiction in which is located a place or premises, other than the subject real property, from whichbusiness activities are conducted. The percentages may be increased or decreased by the Director of Finance where after consideration of all of the facts,circumstances warrant the deviation.

8. The sale of any real property, which would not subject the owner to taxation under the provisions of this section, shall not subject the owner totaxation under the provisions of Section 21.49, Professions and Occupations, of this article.

SEC. 21.194. TRANSPORTING PERSONS FOR HIRE. (Added by Ord. No. 123,096, Eff. 12/1/62.)

(a) Definitions:

1. Operator. The term “operator” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California, withreference only, however, to persons engaging in the transportation of persons for hire.

2. Transportation for Hire. The term “transportation for hire” shall be deemed to include transportation for gain or profit, direct or in direct.

3. Motor Vehicle. The term “motor vehicle” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California.

(b) Tax Imposed.

1. Every person whose business in whole or in part is that of operator, as defined herein, of any motor vehicle for the transportation of persons forhire, and who in the course of that business uses the public streets and highways of the City for the purpose of such business, shall pay a business tax asprovided in this section.

2. The business taxed under the provisions of this section shall be the transportation of persons by an operator:

(i) Wholly within the City;

(ii) From a place or places outside the City to a place or places within the City;

(iii) From a place or places within the City to a place or places outside of the City;

(iv) From a place or places within the City to a place or places also within the City even though such transportation involves going outsidethe City in the course thereof.

3. This section shall not apply to the business of operating motor coaches or other motor vehicles under the provisions of a franchise grantedpursuant to provisions of the City Charter and the Franchise Procedures Ordinance of the City of Los Angeles, which requires a franchise fee or chargebased upon such operations to be paid to the City of Los Angeles, when such fee or charge has been paid. Nor shall this section apply to an operator whotransports persons for hire from a place or places outside the City to a place or places within the City by taxi cabs when said operator does not also transportpersons for hire from a place within the City of Los Angeles. (Amended by Ord. No. 139,139, Eff. 9/14/69.)

4. No business tax shall be required to be paid for the business of operating a single taxicab in the City pursuant to a written vehicle permit issuedunder Section 71.02. (Added by Ord. No. 150,105, Eff. 10/9/77.)

(c) Measure of Tax Reporting Period. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The tax required to be paid by this section shallbe reported and paid annually. Every person engaged in the business subject to tax under this section shall pay a minimum tax of $54.99 per year at the beginning ofeach calendar year which shall be given as a credit against the total tax due for such year. The tax required to be paid under this section shall be measured asfollows:

1. For each vehicle having a seating capacity of 10 or less persons, the tax shall be $1.06 for each day or fraction thereof of its operation asspecified in Subsection (b);

2. For each vehicle having a seating capacity of 11 to 30 persons, inclusive, the tax shall be $1.60 for each day or fraction thereof of its operation asspecified in Subsection (b); and

3. For each vehicle having a seating capacity of 31 or more persons, the tax shall be $2.19 for each day or fraction thereof of its operation asspecified in Subsection (b).

In determining seating capacity of any vehicle used to measure the tax imposed under this section, the capacity to hold adult passengers as set forth in thespecifications of the manufacturer shall be the determining factor, and seats provided for the driver, and announcer or conductor, if any, shall be included in additionto such specified capacity.

(d) Method of Reporting.

1. No person shall engage in such business or perform any act required to be taxed under this section during any tax period without first obtaining aregistration certificate and paying a minimum tax for that year in the amount of $54.99. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

2. At the close of each tax period such person shall file a statement with the Director of Finance showing the tax due setting forth a summary of thevehicles of each graduation specified in Subsection (c) above used during such proceeding tax period and the number of days or fractions thereof of such use,and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due hereunder for such proceeding taxperiod.

3. In making such statement, the person may at his option elect to compute such summary and pay such tax on a “test week” basis, by separatelycomputing the tax which would be due for each of the four test weeks specified in Subsection (d) 4 hereof, dividing the total of the tax due for the four testweeks by four to ascertain the average weekly tax, and multiplying said average weekly tax by the number of weeks of the tax period during which theconducted operations subject to tax under this section. If the person elects to compute the tax imposed hereunder on a test week basis, such elections shall beirrevocable and conclusive as to the tax period for which such election is made. Any person electing to compute such tax on a test week basis shall retain therecords used for such computation for a period of four years from the date of filing such report. Upon the failure of any person electing to compute such taxon a test week basis to retain such records, the Director of Finance may determine the amount of any additional tax estimated to be due from such persons inthe manner provided by Los Angeles Municipal Code Section 21.16.

4. The test weeks which may be used by a person in computing the tax imposed under this section are the second full week in January, the secondfull week in April, the second full week in July and the second full week in October. If a person does not conduct operations subject to tax under thissection in any one or more of such test weeks, then he may use the next succeeding week following such test week in which he does conduct such operationsin the place of such test week; provided, however, that if a person does not conduct operations subject to tax under this section during each of the four testweeks which may, under this subsection, be used in computing the tax, such person may not elect to compute his tax on a test week basis without priorwritten application to and prior written approval of the Director of Finance as to what alternate test period or periods may be used.

5. In the event the business is discontinued, dissolved or otherwise terminated before the close of such tax period, the statement required bySubsection (d)2 hereof shall thereupon be filed, and any additional tax due hereunder shall be paid within 45 days following the date of such continuance,dissolution or termination.

(e) Exemption for Vehicles Operated Exclusively in Interstate Commerce. No tax hereunder shall be required for the operation of any motor vehiclefor any day or fraction thereof when such vehicle is operated exclusively between points within this City and points without this State.

(f) Exemptions and Exceptions. No tax hereunder shall be required for the operation of any motor vehicle for any day or fraction thereof when suchvehicle is operated exclusively between fixed termini or over regular routes in passenger stage operations under certificate issued by the Public Utilities Commissionpursuant to Division 1, Part 1, Chapter 5, Article 2 of the Public Utilities Code of the State of California and for which operation a certificate of public convenienceand necessity has been issued by the Interstate Commerce Commission. (Former (h) Relettered (f) by Ord. No. 159,384, Eff. 11/ 8/84.)

(g) Measure of Tax for Certain School Buses. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The provisions of Subsection (c)notwithstanding, the tax required to be paid under this section for the operation of any motor vehicle for any day or fraction thereof when such vehicle is operatedexclusively on any day to transport students or members of bona fide youth organizations and their supervising adults to or from public or private schools, schoolevents or other youth activities, without regard to the manner or source of compensation to the operator, shall be measured as follows:

1. For each vehicle having a seating capacity of 10 or less persons, the tax shall be $0.30 for each day or fraction thereof of its operation asspecified in Subsection (b);

2. For each vehicle having a seating capacity of 11 to 30 persons, inclusive, the tax shall be $0.44 for each day or fraction thereof of its operation asspecified in Subsection (b); and

3. For each vehicle having a seating capacity of 31 or more persons, the tax shall be $0.60 for each day or fraction thereof of its operation asspecified in Subsection (b).

SEC. 21.195. TRUCKING – HAULING (Added by Ord. No. 123,096, Eff. 12/1/62.)

(a) Definitions.

1. Operator. The term “operator” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California, withreference only, however, the persons engaging in the transportation of property for hire or compensation.

2. Motor Vehicle. The term “motor vehicle” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California.

3. Tractor. The term “tractor” as used herein shall mean “truck- tractor” as defined in the Vehicle Code of California.

(b) Tax Imposed. Every person whose business in whole or in part is that of operator, as defined herein, of any motor vehicle for the transportation ofproperty for hire or compensation, and who in the course of that business uses the public streets and highways of this City for the purpose of such business, shall paya business tax as provided in this section.

(c) Measure of Tax – Reporting Period. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The tax required to be paid by this section shallbe reported and paid annually. Every person engaged in the business subject to tax under this section shall pay a minimum tax of $88.69 per year at the beginning ofeach calendar year which shall be given as a credit against the total tax due for such year. The tax required to be paid under this section shall be measured asfollows:

1. For each motor vehicle, other than a tractor, trailer, semitrailer or dolly, used to receive or discharge, pickup or deliver property within the city,the tax shall be as follows:

Where the unladen weight thereof is 4,000 pounds or less, the tax shall be $0.28 for each day or fraction thereof of its operation as specified inSubsection (b);

Where the unladen weight thereof is over 4,000 pounds, and not more than 8,000 pounds, the tax shall be $0.71 for each day or fraction thereofof its operation as specified in Subsection (b); and

Where the unladen weight thereof is over 8,000 pounds, the tax shall be $0.78 for each day or fraction thereof of its operation as specified inSubsection (b).

2. For each tractor which is so used to haul one or more trailers or semitrailers, the tax shall be $0.78 for each day or fraction thereof of itsoperation as specified in Subsection (b).

(d) Method of Reporting.

1. No person shall engage in such business or perform any act required to be taxed under this section during any tax period without first obtaining aregistration certificate and paying a minimum tax for that year in the amount of $88.69. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

2. At the close of each tax period such person shall file a statement with the Director of Finance showing the tax due and setting forth a summary ofthe vehicles of each graduation specified in Subsection (c) above used during such preceding tax period and the number of days or fractions thereof of suchuse, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due hereunder for such precedingtax period.

3. In making such statement, the person may at his option elect to compute such summary and pay such tax on a “test week” basis, by separatelycomputing the tax which would be due for each of the four test weeks specified in Subsection (d)4 hereof, dividing the total of the tax due for the four testweeks by four to ascertain the average weekly tax, and multiplying said average weekly tax by the number of weeks of the tax period during which heconducted operations subject to tax under this section. If the person elects to compute the tax imposed hereunder on a test week basis, such election shall beirrevocable and conclusive as to the tax period for which such election is made. Any person electing to compute such tax on a test week basis shall retain therecords used for such computation for a period of four years from the date of filing such report. Upon the failure of any person electing to compute such taxon a test week basis to retain such records, the Director of Finance may determine the amount of any additional tax estimated to be due from such person inthe manner provided by Los Angeles Municipal Code Section 21.16.

4. The test weeks which may be used by a person in computing the tax imposed under this section are the second full week in January, the secondfull week in April, the second full week in July and the second full week in October. If a person does not conduct operations subject to tax under thissection in any one or more of such test weeks, then he may use the next succeeding week following such test week in which he does conduct such operationsin the place of such test week; provided, however, that if a person does not conduct operations subject to tax under this section during each of the four testweeks which may, under this subsection, be used in computing the tax, such person may not elect to compute his tax on a test week basis without priorwritten application to and prior written approval of the Director of Finance as to what alternate test period or periods may be used.

5. In the event the business is discontinued, dissolved or otherwise terminated before the close of such tax period, the statement required bySubsection (d)2 hereof shall thereupon be filed, and any additional tax due hereunder shall be paid within 45 days following the date of such discontinuance,dissolution or termination.

(e) Exception for Vehicle Operated Exclusively in Interstate Commerce. No tax hereunder shall be required for the operation of any motor vehicle forany day or fraction thereof when such vehicle is operated exclusively between points within this City and points without this State.

(f) Exemption and Exceptions. No tax under this section shall be required to be paid by any person who is subject to tax under the Household GoodsCarriers Uniform Business License Tax Act or the Motor Carriers of Property Permit Fee Act. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.196. MISCELLANEOUS TRUCKING. (Added by Ord. No. 123,096, Eff. 12/1/62.)

(a) Definitions. For purposes of this section, the term “motor vehicle” is defined to mean the same as that term is defined in the Motor VehicleTransportation License Tax Act of California: the term “trailer” and “semi-trailer” are used as those terms are defined in the Vehicle Code of California; the term“tractor” shall mean a “truck tractor” as defined in the Vehicle Code of California.

(b) Tax Imposed. Every person engaged in any business not otherwise specifically taxed by other provisions of this article who uses any motor vehicleover the public streets and highways of this City for hauling or carrying his tools, equipment or supplies, or for delivering or carrying goods, wares or merchandisesold, let or handled by him in the course of his business, shall pay a business tax as provided in this section.

(c) Measure of Tax Reporting Period. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

The tax required to be paid by this section shall be reported and paid annually. Every person engaged in the business subject to tax under this section shall paya minimum tax of $88.69 per year at the beginning of each calendar year which shall be given as a credit against the total tax due for such year. The tax required tobe paid under this section shall be measured as follows:

1. For each motor vehicle, other than a tractor, trailer, semitrailer or dolly, the tax shall be as follows:

Where the unladen weight thereof is 4,000 pounds or less, the tax shall be $0.28 for each day or fraction thereof of its operation as specified inSubsection (b);

Where the unladen weight thereof is over 4,000 pounds, and not more than 8,000 pounds, the tax shall be $0.71 for each day or fraction thereofof its operation as specified in Subsection (b); and

Where the unladen weight thereof is over 8,000 pounds, the tax shall be $0.78 for each day or fraction thereof of its operation as specified inSubsection (b).

2. For each tractor which is so used to haul one or more trailers or semitrailers, the tax shall be $0.78 for each day or fraction thereof of itsoperation as specified in Subsection (b).

(d) Method of Reporting.

1. No person shall engage in such business or perform any act required to be taxed under this section during any tax period without first obtaining aregistration certificate and paying a minimum tax for that year in the amount of $88.69. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

2. At the close of each tax period such person shall file a statement with the Director of Finance showing the tax due and setting forth a summary ofthe vehicles of each graduation specified in Subsection (c) above used during such preceding tax period and the number of days or fractions thereof of suchuse, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due hereunder for such precedingtax period.

3. In making such statement, the person may at his option elect to compute such summary and pay such tax on a “test week” basis, by separatelycomputing the tax which would be due for each of the four test weeks specified in Subsection (d)4 hereof dividing the total of the tax due for the four testweeks by four to ascertain the average weekly tax, and multiplying said average weekly tax by the number of weeks of the tax period during which heconducted operations subject to tax under this section. If the person elects to compute the tax imposed hereunder on a test week basis, such election shall beirrevocable and conclusive as to the tax period for which such election is made. Any person electing to compute such tax on a test week basis shall retain therecords used for such computation for a period of four years from the date of filing such report. Upon the failure of any person electing to compute such taxon a test week basis to retain such records, the Director of Finance may determine the amount of any additional tax estimated to be due from such person inthe manner provided by Los Angeles Municipal Code Section 21.16.

4. The test week which may be used by a person in computing the tax imposed under this section are the second full week in January, the secondfull week in April, the second full week in July and the second full week in October. If a person does not conduct operations subject to tax under thissection in any one or more of such test weeks, then he may use the next succeeding week following such test week in which he does conduct such operationsin the place of such test week; provided, however, that if a person does not conduct operations subject to tax under this section during each of the four testweeks which may, under this subsection, be used in computing the tax, such person may not elect to compute his tax on a test week basis without priorwritten application to and prior written approval of the Director of Finance as to what alternate test period or periods may be used.

5. In the event the business is discontinued, dissolved or otherwise terminated before the close of such tax period, the statement required bySubsection (d)2 hereof shall thereupon be filed, and any additional tax due hereunder shall be paid within 45 days following the date of such discontinuance,dissolution or termination.

SEC. 21.197. TELEPHONE COMPANIES. (Repealed by Ord. No. 178,101, Eff. 1/9/07.)

SEC. 21.199. SALES TAX.

(a) Imposition and Rate of Sales Tax. (Reenacted, Amended by Ord. No. 137,130, Oper. 10/1/68) For the privilege of selling tangible personalproperty at retail a tax is hereby imposed, in addition to any other tax imposed under this article or under this chapter, upon all retailers at the rate of one percent ofthe gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City of Los Angeles on or after October 1, 1968, and to andincluding March 31, 1969.

Notwithstanding the foregoing provisions of this subsection, the tax imposed by this section shall not apply to selling tangible personal property at fixed pricesagreed to in contracts executed in good faith prior to October 1, 1968.

For the purposes of this section, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is deliveredby the retailer or his agent to an out–of–state destination, or to a common carrier for delivery to an out-of-state destination. The gross receipts from sales shallinclude delivery charges when such charges are subject to the sales and use tax imposed by the State of California, regardless of the place to which delivery ismade. In the event a retailer having a place of business within the City also has a place of business outside the City, both of which participate in some degree in aparticular sale, the sale shall be deemed to have occurred within the City of Los Angeles if the principal negotiations were carried on there or by personnel normallyassigned to that place of business. In the event a retailer has no permanent place of business in the City, but nevertheless engages in selling tangible personalproperty in the City, the sales shall be deemed to have occurred within the City if the sales were solicited or otherwise promoted by the seller or his agent within theCity and the seller or his agent delivered the property within the City to a purchaser or to the purchaser’s agent.

(b) Reimbursement. The retailer shall reimburse himself for the tax due from the consumer substantially in accordance with the following table up to theamount specified herein:

[Sales Tax — Retailer Reimbursement]

1 %

Price Tax.01 - .49 .00.50 - 1.49 .01

1.50 - 2.49 .022.50 - 3.49 .033.50 - 4.49 .044.50 - 5.49 .055.50 - 6.49 .066.50 - 7.49 .077.50 - 8.49 .088.50 - 9.49 .099.50 - 10.49 .10

The remainder of the schedule shall show amounts of reimbursement computed by applying the applicable tax rate to the sales price, rounded off to the nearestcent by eliminating any fraction less than one–half cent and increasing any fraction of one–half cent or over to the next higher cent.

(c) Unlawful Advertising. It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly that the taxor any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold, or that, if added, it or any partthereof will be refunded.

(d) Tax Levied as State Sales & Use Tax Law. The tax hereby levied, except as otherwise provided, is levied in the same manner, to the same extentand under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the “Sales and UseTax Law,” as amended and in force and effect on October 1, 1968.

(e) Extension of Time; Due Date: Penalties. The Director of Finance, for good cause, may extend for not more than 45 days the time for making anyreturn or paying any sum required to be paid hereunder. The extension may be granted at any time provided a written request therefor is filed with the Director ofFinance prior to the delinquency date.

All taxes payable monthly and all taxes payable quarterly hereunder shall be deemed delinquent if not paid on or before the close of business on the last day ofthe month following the monthly or quarterly period for which the tax is payable. Taxes payable hereunder for periods other than monthly or quarterly periods shallbe deemed delinquent at the times designated by the Director of Finance in his rules and regulations. Whenever tax required to be paid by this section is not paid onor before the date on which it becomes delinquent, penalties and interest shall accrue and deficiency determinations shall be made in the manner provided in Sec.21.05 and Sec. 21.15.

Each retailer shall, on or before the last day of the month following the close of each calendar quarter, make a statement to the Director of Finance on formsprovided by him, of the total gross receipts received during the preceding quarter. At the time the statement is filed, the full amount of tax due shall be paid to theDirector of Finance. Where the Director of Finance determines that efficiency in the administration of the tax would be promoted, he may establish reporting periodsgreater than quarterly, but not to exceed one year, for retailers who sell tangible personal property only occasionally or seasonally. The Director of Finance mayestablish shorter reporting periods for any retailer if he deems it necessary in order to insure connection of the tax and he may require further information in thestatement. Statements and payments are due immediately upon cessation of business for any reason.

In addition to the powers of the Director of Finance mentioned in the foregoing paragraphs, he may, under circumstances set forth in Subsection (j) of thissection require prepayment of taxes.

(f) Registration; Permits. Every person desiring to engage in or conduct business as a seller within the City of Los Angeles shall secure from the Directorof Finance of said City a permit for each place of business. Such permits shall be issued by the Director of Finance upon receipt of a written application thereforsetting forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business and such other informationas the Director of Finance may require. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business atthe place designated therein. A change of location may be endorsed upon the permit by the Director of Finance. The permit shall at all times be conspicuouslydisplayed at the place for which issued.

(g) Revocation of Permit; Renewal of Permit. Whenever any person fails to comply with any provision of this section or any rule or regulation adoptedpursuant hereto, the Director of Finance, upon hearing, after giving such person ten days’ notice in writing specifying the time and place of hearing and requiringhim to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by such person. The notice may beserved personally or by mail in the manner prescribed for service of notice in Sec. 11.00(i) or in Sec. 21.16 of this Code. The Director of Finance shall not issue anew permit unless he is satisfied that the former holder of the permit will thereafter comply with the provisions of this section and the rules and regulations adoptedhereunder.

(h) Selling Without Permit. A person who engages in business as a seller in the City without a permit or permits, or after a permit has been suspended,and each officer of any corporation which so engages in business is guilty of a misdemeanor.

(i) Violation of Ordinance. The Director of Finance may at his option accept a State of California Resale Certificate as evidence that any sale is not a

sale at retail, or he may in his discretion require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to determinethe nature of such sale.

(j) State Resale Certificate Optional. All provisions of the Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Tax Code of the State ofCalifornia, as amended and in force and effect on October 1, 1968, except the provisions pertaining solely to the Use Tax and Sections 6051, 6052, 6052.5, 6053,6066, 6067, 6068, 6069, 6070, 6071, 6072, 6271 to 6292 inclusive, 6451, 6459, 6470, 6481 to 6592, inclusive, 6701 to 6799, inclusive, 6826 to 6828, inclusive,6901 to 6937, inclusive, 6961 to 6963, inclusive, 6981, 7051 to 7056, inclusive, 7057, 7101 to 7154, inclusive, and 7176 applicable to sales of property at retail, arehereby adopted and made a part of this section as though fully set forth herein and all provisions of this Code conflict therewith are inapplicable to this section andthe tax hereby imposed. All of the provisions of the California Sales and Use Tax Law hereby adopted, providing for the performance of official action on the partof the State Board of Equalization shall be performed by the Director of Finance of the City of Los Angeles.

(k) Sections of State Law Adopted by Reference; Suit for Collection of Tax. The term “gross receipts” as used herein does not include (l) the amountof any federal tax imposed upon or with respect to retail sales, whether imposed upon the retailer or upon the consumer, and regardless of whether or not the amountof federal tax is stated to customers as a separate charge; and (2) the amount of any California State or local Sales or Use Tax.

(l) Gross Receipts Defined. In addition to the exemptions contained in Part 1 of Division 2 of the Revenue and Taxation Code of the State of California,there shall be excluded from the computation of the tax gross receipts from;

1. Sales of property which is shipped to a point outside this City pursuant to the contract of sale by delivery by the retailer to such a point by meansof (A) facilities operated by the retailer; (B) delivery by the retailed to a carrier for shipment to a consignee at such point; or (C) delivery by the retailer to acustoms broker or forwarding agent for shipment outside this City.

(m) Administration of Ordinance; Rules and Regulations. The Director of Finance shall administer and enforce the provisions of this section and, withthe approval of the City Attorney, shall prescribe, adopt and enforce reasonable rules and regulations for the purpose of administering and enforcing the section.Each of said rules and regulations which relate to the time, form and manner of making returns and payments of the taxes imposed hereby shall govern,notwithstanding any other provision of this article to the contrary. Such rules and regulations, among other things, require each retailer to keep such records,receipts, invoices and other pertinent papers in the manner therein set forth.

Inasmuch as this section is patterned after the Sales Tax provisions of the Revenues and Taxation Code of the State of California, and the State Board ofEqualization has made various rules and regulations pertaining to the interpretation, administration and enforcement of said provisions of the Revenue and TaxationCode, and it may be reasonably assumed that the City of Los Angeles will be confronted with many of the problems dealt with in the state rules and regulations,each such rule and regulation, in so far as applicable, shall apply in the interpretation of this section until specifically abandoned by rules and regulations adopted bythe Director of Finance pursuant to the authority of this section.

(n) Inclusion of Portion of State Law. The inclusion of any clause, portion or part of the State Sales and Use Tax Law, Part 1, Division 2 of the Revenueand Taxation Code of the State of California, verbatim in this section shall not in or of itself be deemed to exclude any of the remaining provisions of said Salesand Use Tax Law that are made a part hereof by reference only.

(z) Validity of Ordinance. If any subsection, sentence, clause, phrase or portion of this section, including but not limited to any exemption, is, for anyreason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainingportions of this section. The Council of this City hereby declares that it would have adopted this section and each subsection, sentence, clause, phrase or portionthereof, irrespective of the fact that any one or more subsections, clauses, phrases or portions be declared invalid or unconstitutional.

ARTICLE 1.1TELEPHONE, ELECTRICITY AND GAS USERS TAX

(Added by Ord. No. 135,104, Eff. 10/2/67, Operative 11/1/67.)

Section21.1.1 Definitions.21.1.2 Constitutional Exemptions.21.1.3 Communications Users Tax.21.1.4 Electricity Users Tax.21.1.5 Gas User Tax.21.1.6 Interest and Penalty.21.1.7 Actions to Collect.21.1.8 Duty to Collect – Procedures.21.1.9 Additional Powers and Duties of Director of Finance, Etc.21.1.10 Assessment – Administrative Remedy.21.1.11 Records.

21.1.12 Exemptions and Refunds.21.1.13 Amendment or Repeal.21.1.14 Audit of Communications Users Tax.21.1.15 Severability.

SEC. 21.1.1. DEFINITIONS. (Amended by Ord. No. 179,686*, Eff. 3/15/08.) The following words and phrases whenever used in this article shall be construed as defined in this section:

(a) "Ancillary Telecommunications Services" shall mean services that are associated with or incidental to the provision, use or enjoyment ofCommunications Services.

(b) "Communications Services" shall mean the transmission, conveyance, or routing of voice, audio, video communications, data or any othercommunications information or signals to a point, or between or among points, whatever the technology used, and whether or not that information istransmitted through interconnected service with the public switched network, or through fiber optic, coaxial cable, power line transmission, broadband,digital subscriber line or other wireless transmission. The term "Communications Services" includes transmission, conveyance, or routing in which computerprocessing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard towhether those services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission asenhanced or value added, and includes video and/or data services that are functionally integrated with "Communications Services". "CommunicationsServices" include, but are not limited to the following services, regardless of the manner or basis on which those services are calculated or billed: centraloffice and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); local numberportability; text messaging; instant messaging; Ancillary Telecommunications Services; prepaid and post-paid telecommunications services (including butnot limited to prepaid calling cards); mobile telecommunications services; Private Communications Services; paging services; and 800 services (or any othertoll-free numbers designated by the Federal Communications Commission). "Communications Services" does not include either digital downloads, such asdownloads of books, music, ringtones, games and similar digital products, or that portion of cable or video television services subject to a cable or videotelevision franchise fee.

(c) "Month" shall mean a calendar month.

(d) "Person" shall mean all individuals, domestic and foreign corporations, associations, syndicates, joint stock companies, partnerships of everykind, joint ventures, clubs, Massachusetts businesses or common law trusts, societies, and, shall include municipal corporations.

(e) "Private Communications Services" shall mean any dedicated Communications Services that entitle the user to the exclusive or priority use ofcommunications channels.

(f) "Service User" shall mean a Person required to pay a tax imposed under the provisions of this article.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.2. CONSTITUTIONAL EXEMPTIONS. (Amended by Ord. No. 135,276, Eff. 10/30/67.)

Nothing in this article shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of theConstitution of the United States or that of the State of California.

SEC. 21.1.3. COMMUNICATIONS USERS TAX. (Title and Section Amended by Ord. No. 179,686*, Eff. 3/15/08.)

(a) There is hereby imposed a tax upon every Person with a billing or service address in the City of Los Angeles who uses Communications Services,including services for intrastate, interstate or international Communications Services, to the extent permitted by state and federal law. The tax imposed by thissection shall be at the rate of nine percent of the charges made for those Communications Services and shall be paid by the Person paying for those services. However, as to the charges made for services to any independent telemarketing agency, as defined in Section 21.47(b) of this Code, incurred solely in performingthe functions of an independent telemarketing agency, the tax imposed by this section shall be at the rate of five percent of the charges made for those services.

(b) The tax imposed in this section shall be collected from the Service User by the Person providing the Communications Services. The amount of taxcollected from the 26th day of each Month through the 25th day of the following Month shall be remitted to the Director of Finance on or before the 26th day of thefollowing Month, or, at the option of the Person required to collect and remit the tax, an estimated amount of tax collected, measured by the billings of the previousMonth, shall be remitted to the Director of Finance on or before the 20th day of each Month.

(c) Charges subject to the Communications Users Tax include, but are not limited to, the following: connection, reconnection, termination, movement, or

change of telecommunications services; late payment fees; detailed billing; voice mail and other messaging services; directory assistance; access and line charges;universal service charges; and regulatory, administrative and other cost recovery charges.

(d) Exemptions. Except as otherwise provided in this article, Communications Services shall include all Communications Services for which there is acharge, regardless of the means or technology used to provide those services. Notwithstanding the provisions of Subsection (a), the tax imposed under this sectionshall not be imposed upon any Person for using Communications Services under the circumstances set forth below:

1. News services. No tax shall be imposed under this section, except with respect to local telephone service, on any payment received from anyPerson for services used in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the publicpress, or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar tothat of the public press, or by means of radio broadcasting, if the charge for that service is billed in writing to that Person.

2. International, etc., organizations. No tax shall be imposed under this section on any payment received for services furnished to a publicinternational organization in which the United States participates pursuant to treaty or Act of Congress, or to the American National Red Cross.

3. Servicemen in combat zone. No tax shall be imposed under this section on any payment received for any toll telephone service, whichoriginates within a combat zone, as defined in Section 112 of Title 26 of the United States Code, from a member of the Armed Forces of the United Statesperforming service in the combat zone, as determined under Section 112 of Title 26 of the United States Code.

4. Items otherwise taxed. Only one payment of tax under this section shall be required with respect to the tax on any service.

5. Common carriers and communications companies. No tax shall be imposed under this section on the amount paid for any CommunicationsServices to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or network inthe conduct of its business.

6. Installation charges. No tax shall be imposed under this section on any amount paid for the installation of any instrument, wire, pole,switchboard, apparatus, or equipment as is properly attributable to the installation.

7. Nonprofit hospitals. No tax shall be imposed under this section on any amount paid by a nonprofit hospital for services furnished to thatorganization. For purposes of this exemption, the term "nonprofit hospital" means a hospital referred to in Section 170(b)(1)(A)(iii) of Title 26 of the UnitedStates Code, which is exempt from federal income tax under Section 501(a) of Title 26 of the United States Code.

8. State and local governments. No tax shall be imposed under this section upon any payment received for services or facilities furnished to thegovernment of any State, or any of its political subdivisions, or the District of Columbia.

9. Nonprofit educational organizations. No tax shall be imposed under this section on any amount paid by a nonprofit educational organizationfor services or facilities furnished to that organization. For purposes of this exemption, the term "nonprofit educational organization" means an educationalorganization described in Section 170(b)(1)(A)(ii) of Title 26 of the United States Code, which is exempt from federal income tax under Section 501(a) ofTitle 26 of the United States Code. The term also includes a school operated as an activity of an organization described in Section 501(c)(3) of Title 26 ofthe United States Code, which is exempt from federal income tax under Section 501(a) of Title 26 of the United States Code, if that school normallymaintains a regular facility and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educationalactivities are regularly carried on.

(e) To prevent actual multiple taxation of any Communications Services that are subject to tax under Subsection (a) of this section, any Service User, uponproof that the Service User owed and has paid a tax in another taxing jurisdiction on the Communications Services, shall be allowed a credit against the tax imposedin Subsection (a) to the extent of the amount of the tax properly due and paid in the other taxing jurisdiction. However, no credit may be allowed for any tax paidto another taxing jurisdiction on any call to the extent that the call may not, under the Constitution and statutes of the United States, be made the subject of taxationby the other taxing jurisdiction. Nor shall the amount of credit exceed the tax owed to the City under this section.

(f) Any person claiming to be an independent telemarketing agency, which has charges subject to tax at the five percent rate, shall file an application forrate adjustment with the Director of Finance. This application shall be made on forms provided by the Director of Finance and shall recite facts under oath whichqualify the applicant for the five percent tax rate. Notwithstanding any other provision of this article, the five percent rate shall apply only to charges for servicesthat were necessarily incurred solely and exclusively for telemarketing activities. The burden of maintaining records and establishing that this charge is subject totax at the five percent rate shall be on the applicant. Charges for all other services shall be subject to tax at the nine percent rate.

(g) For purposes of imposing a tax or establishing a duty to collect and remit a tax under this section, "substantial nexus" and "minimum contacts" shall beconstrued broadly in favor of the imposition, collection and/or remittance of the communications users tax to the fullest extent permitted by state and federal law,and as it may change from time to time by judicial interpretation or by statutory enactment. Any Communications Services used by a Person with a service orbilling address in the City shall be subject to a rebuttable presumption that "substantial nexus / minimum contacts" exists for purposes of imposing a tax, orestablishing a duty to collect and remit a tax, under this section. For communications services for which there is no billing address or primary physical location forthe provision of services, the service address shall mean the point of sale of the services.

(h) If a non-taxable service and a taxable service are billed together under a single charge, the entire charge shall be deemed taxable unless the servicesupplier or taxpayer reasonably identifies actual charges for services not subject to the tax. The service supplier or taxpayer seeking a reduction has the burden of

proving the proper valuation and apportionment of taxable and non-taxable charges based upon books and records that are kept in the regular course of business andin a manner consistent with generally accepted accounting principles.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.4. ELECTRICITY USERS TAX. (Amended by Ord. No. 142,333, Eff. 9/30/71, Oper. 10/1/71.)

(a) There is hereby imposed a tax upon every person in the City of Los Angeles using electrical energy in the City of Los Angeles. The tax imposed bythis section shall be at the rate of 10 percent of the charges made for such energy and shall be paid by the person paying for such energy, provided, however, thatcommercial or industrial users of electrical energy shall be subject to tax and a tax is hereby imposed upon them at the rate of 12.5 percent of the charges made forsuch energy, but as to any non-profit educational institution, as defined in Subdivision 3 of Subsection (c) of Section 21.190 of this Code, the tax imposed by thissection shall be at the rate of 10 percent of the charges made for such energy. (Second Sentence Amended by Ord. No. 171,436, Eff. 1/10/97.) “Charges” asused in this section, shall include charges made for (1) metered energy, and (2) minimum charges for service, including customer charges, service charges,demand charges, standby charges, and annual and monthly charges.

The term “commercial or industrial users” as used in this section, is intended to include, but shall not be limited to, any person who qualifies as a“commercial or industrial” consumer of electrical energy within the electric rate schedules of the Department of Water and Power of the City of Los Angeles or thetariff schedules of the Southern California Edison company, provided however, a user of electrical energy shall not be considered a “commercial or industrialuser” of any electrical energy supplied to a single family accommodation separately metered or for energy to two or more individual family accommodationssupplied as a unit, upon application under the provisions of the Department’s Domestic Service Schedule D–1, devoted primarily to domestic, residential, householdand related purposes, as distinguished from commercial, professional, and industrial purposes.

(b) As used in this section, the term “using electrical energy” shall not be construed to mean that storage of such energy by a person in a battery owned orpossessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received, provided however, that theterm shall include the receiving of such energy for the purpose of using it in the charging of batteries, nor shall the term include the mere receiving of such energyby an electric public utility or government agency at a point within the City of Los Angeles for resale. (Amended by Ord. No. 135,276, Eff. 10/30/67.)

(c) The tax imposed in this section shall be collected from the service user by the person supplying such energy. The amount of tax collected from the 26thday of each month through the 25th day of the following month shall be remitted to the Director of Finance on or before the 26th day of such following month, or,at the option of the person required to collect and remit the tax, an estimated amount of tax collected in each month shall be remitted to the Director of Finance on orbefore the 26th day of such month. (Amended by Ord. No. 156,573, Eff. 5/10/82)

SEC. 21.1.5. GAS USER TAX.

(a) (Amended by Ord. No. 169,245, Eff. 1/15/94.) There is hereby imposed a tax upon every person in the City of Los Angeles using in the City gaswhich is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 10 percent of the charges made for such gas and shall be paid bythe person paying for such gas, provided, however, that as to any non-profit educational institution, as defined in subdivision 3 of Subsection (c) of Section 21.190of this Code, the tax imposed by this section shall be at the rate of 5 percent of the charges made for such gas. (Second Sentence Amended by Ord. No. 171,436,Eff. 1/10/97.) When gas is transported by, but not purchased from, a transporter, the charges subject to tax shall be measured by (1) the transportation cost and (2) the cost of the transported gas, which shall be based on the volume of gas transported multiplied by the core subscription weighted average cost of gas for thecalendar month immediately preceding the calendar month in which the billing period terminates.

Notwithstanding the foregoing, the tax on the cost of transported gas may be determined by applying the tax rate to the actual purchase cost, either by theservice user applying to the Director of Finance for a refund or the Director of Finance billing the service user, for the amount which represents the differencebetween the tax paid by the service user to the transporter and the tax determined by the actual purchase cost of the gas. In a claim for refund, the service user shallprovide the Director of Finance with satisfactory evidence of the quantity and cost of the gas purchased from a party other than the transporter. When the Director ofFinance believes that direct collection of the tax from the service user is in the best interest of the City, as provided in Subsection (b) of Section 21.1.10 of thisCode, the transporter, upon request from the Director of Finance, shall furnish the Director of Finance, with respect to each service user for whom gas is transported,the name, mailing address, service address, gas meter number, transportation cost, volume of gas transported and the core subscription weighted average cost of gasfor the calendar month immediately preceding the calendar month in which the billing period terminates. This information shall be confidential and shall be usedonly for the purpose of administering the tax.

(b) (Amended by Ord. No. 135,276, Eff. 10/30/67.) There shall be excluded from the base on which the tax imposed in this section is computed chargesmade for gas which is to be resold and delivered through main or pipes, charges made for gas sold for use in the generation of electrical energy by a public utility ora governmental agency; and charges made by a gas public utility for gas used and consumed in the conduct of the business of as public utilities.

(c) The tax imposed in this section shall be collected from the service user by the person selling gas or, when gas is purchased from and transported byseparate persons, the tax shall be collected by the transporter. (1st Sentence Amended by Ord. No. 169,245, Eff. 1/15/94.) The amount of tax collected from the26th day of each month through the 25th day of the following month shall be remitted to the Director of Finance on or before the 26th day of such following month,or, at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the billings of the previous month, shall be

remitted to the Director of Finance on or before the 26th day of each month. (Amended by Ord. No. 156,573, Eff. 5/10/82.)

(d) There shall be exempt from the base on which the tax imposed in this section is computed charges made for gas used for non-utility purposes. For thepurposes of this subsection, the term “gas used for non-utility purposes” shall mean gas used as a raw material in a manufactured product, and shall exclude gasused to produce light, heat or power. Any service user claiming an exemption under this subsection shall file an application with the Director of Finance for suchexemption. Such application shall be made upon forms supplied by the Director of Finance and shall recite under oath facts which qualify the applicant for anexemption. The Director of Finance shall review each such application, certify as exempt such service determined to qualify therefor and notify each affectedservice supplier that such exemption has been approved, stating the name of the applicant, the address to which such exempt service is being supplied, the accountnumber, if any, and such other information as may be necessary for the service supplier to remove the exempt service from the tax billing procedure. Upon receiptof such notice, the service supplier shall not be required to continue to bill any further tax imposed by this section for such exempt service until given further noticeby the Director of Finance. (Added by Ord. No. 171,119, Eff. 7/21/96, Oper. 1/1/96.)

(e) (Added by Ord. No. 174,205, Eff. 9/29/01.) Notwithstanding the provisions of Subsection (a) of this section and Section 21.1.8(b) of this article, thecollection rate of the tax imposed in Subsection (a) of this section at the rate of 10 percent shall be reduced temporarily for residential users to 6 percent for the firstfour regular billing periods ending on or after December 1, 2001, and on or before April 15, 2002. For all subsequent regular billing periods, the collection rate forresidential users shall revert to the 10 percent rate imposed in Subsection (a) of this section.

SEC. 21.1.6. INTEREST AND PENALTY.

(a) Taxes collected from a service user which are not remitted to the Director of Finance on or before the due dates provided in this article are delinquent.

(b) interest and penalties for delinquency in remittance of any tax collected, or any deficiency determination shall attach and be paid by the person requiredto collect and remit at the rates and in the same manner as is provided in Sec. 21.05 of this chapter for delinquency in payment of Business Tax.

(c) The Director of Finance shall have power to impose additional penalties upon persons required to collect and remit taxes under the provisions of thisarticle article for fraud and negligence in reporting and remitting in the same ,manner and at the same rates as.are provided in Sec. 21.05 of this chapter for suchpenalties upon persons required to pay Business Tax.

(d) (Amended by Ord. No. 174,085, Eff. 8/19/01.) For collection purposes only, every penalty imposed and such interest as accrues under the provisionsof this section shall become a part of the tax herein required to be remitted.

SEC. 21.1.7. ACTIONS TO COLLECT. (Amended by Ord. No. 179,686*, Eff. 3/15/08.)

Any tax required to be paid by a Service User under the provisions of this article shall be deemed a debt owed by the Service User to the City. Any such taxcollected from a Service User, which has not been remitted to the Director of Finance, shall be deemed a debt owed to the City by the Person required to collect andremit. Any Person owing money to the City under the provisions of this article shall be liable to an action brought in the name of the City for the recovery of thatamount. In the event that a service supplier required to collect and remit a tax under the provisions of this article fails to do so in whole or in part, the amount of theunremitted tax shall be deemed a debt owed by the service supplier to the City.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.8. DUTY TO COLLECT – PROCEDURES. (Amended by Ord. No. 179,686*, Eff. 3/15/08.)

The duty to collect and remit the taxes imposed by this article shall be performed as set forth in this section.

(a) The tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billingpractice. If the amount paid by a Service User is less than the full amount of the charge and tax that has accrued for the billing period, a proportionate shareof both the charge and the tax shall be deemed to have been paid.

(b) The duty to collect tax from a Service User shall commence with the beginning of the first regular billing period applicable to that Person,which starts on or after the operative date of this article. When the rate of the tax is increased or decreased, the duty to collect at the new rate shallcommence with the beginning of the first regular billing periods applicable to that Person, which starts on or after the effective date of the new rate. Where aPerson receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.9. ADDITIONAL POWERS AND DUTIES OF DIRECTOR OF FINANCE, ETC.

(Amended by Ord. No. 179,686*, Eff. 3/15/08.)

(a) The Director of Finance shall have the power and duty, and is hereby directed to enforce all of the provisions of this article.

(b) In administering and enforcing the provisions of this article, the Director of Finance shall have the same powers and duties with respect to collectingthe tax provided in this article as he or she has under Section 21.15 of this chapter with respect to collecting the Business Tax.

(c) The provisions of Sections 21.17, 21.20 and 21.21 of this chapter shall apply to the administration and collection of the tax imposed under theprovisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

(d) The Director of Finance may, from time to time, issue and disseminate administrative agreements or rulings identifying those services or Persons thatare subject to the requirements imposed by this article, deferring implementation or enforcement of requirements imposed by this article or interpreting theprovisions of this article. These administrative rulings shall be consistent with federal, state and local law. To the extent that the Director of Finance, or the CityAttorney pursuant to Section 21.31, determines that the tax imposed under this article shall not be collected in full for any period of time from any particular servicesuppliers or Service Users, that determination shall be considered an exercise of the Director's discretion to settle disputes and shall not constitute a change in taxingmethodology for purposes of Government Code section 53750 or otherwise. Neither the Director of Finance nor the City Attorney is authorized to amend the City'smethodology for purposes of Government Code section 53750 and the City does not waive or abrogate its ability to impose the communications users tax in full asa result of promulgating administrative rulings or entering into agreements.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.10. ASSESSMENT – ADMINISTRATIVE REMEDY. (Amended by Ord. No. 136,861, Eff. 8/19/68.)

(a) The Director of Finance may make an assessment for taxes not remitted by a person required to remit for any reason specified in Sec. 21.16 of thischapter for making an assessment for unpaid Business Tax. The manner of making and providing notice of such assessment; the right to a hearing and the conductof such hearing; the preparation and service of findings; filing exceptions; and passing upon exceptions shall be the same as provided in Sec. 21.16 of this chapter.

(b) Whenever the Director of Finance determines that a service user has deliberately withheld the amount of the tax owed by him from the amountsremitted to a person required to collect the tax, or that a service user has failed to pay the amount of the tax to such person for a period of two or more billingperiods, or whenever the Director of Finance deems it in the best interests of the City, he may relieve such person of the obligation to collect taxes due under thisarticle from certain named service users for specified billing periods. The Office of Finance shall notify the service user that he has assumed responsibility to collectthe taxes due for the stated periods and demand payment of such taxes. (Sentence Amended by Ord. No. 173,587, Eff. 12/7/00.) The notice shall be served on theservice user by handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at theaddress to which billing was made by the person required to collect the tax; or, should the service user have changed his address, to his last known address. If aservice user fails to remit the tax to the Director of Finance within fifteen days from the date of the service of the notice upon him, which shall be the date ofmailing if service is not accomplished in person, a penalty of twenty-five percent of the amount of the tax set forth in the notice shall be imposed, but not less than$5.00. The penalty shall become part of the tax herein required to be paid.

SEC. 21.1.11. RECORDS.

It shall be the duty of every person required to collect and remit to the City any tax imposed by this article to keep and preserve, for a period of three years, allrecords as may be necessary to determine the amount of such tax as he may have been liable for the collection of and remittance to the Director of Finance, whichrecords the Clerk shall have the right to inspect at all reasonable times.

SEC. 21.1.12. EXEMPTIONS AND REFUNDS. (Title and Section Amended by Ord. No. 179,686*, Eff. 3/15/08.)

(a) The tax imposed by this article shall not apply to any individual 62 years of age or older or any disabled individual who uses Communications Services,electric, or gas services in or upon any premises occupied by that individual, provided the combined adjusted gross income (as used for purposes of the CaliforniaPersonal Income Tax Law) of all members of the household in which the individual resided was less than the figure in effect on the preceding first day of April asthe "very low income" limitation for a family of two persons in the City of Los Angeles under the Section 8 housing programs of the United States Housing Act of1937, as amended, as published by the United States Department of Housing and Urban Development.

For the purposes of this section, an individual shall be considered to be disabled if he or she is unable to engage in any substantial gainful activity by reason ofany medically determinable physical or mental impairment, which can be expected to result in death, or to be of long-continued and indefinite duration.

The exemption granted by this section shall not eliminate the duty of the service supplier from collecting taxes from the exempt individuals or the duty of theexempt individuals from paying those taxes to the service supplier unless the Service User applies for an exemption and the Director of Finance grants theexemption in accordance with the provisions of Subsection (b).

For each fiscal year, the Director of Finance is directed to determine, and utilize as the prior calendar year's adjusted gross income limitation, the figure ineffect on the preceding first day of April as the "very low income" limitation for a family of two persons in the City of Los Angeles under the Section 8 housingprograms of the United States Housing Act of 1937, as amended, as published by the United States Department of Housing and Urban Development.

(b) Any Service User exempt from the taxes imposed by this article because of the provisions of Subsection (a) above or any other applicable exemption,may file an application with the Director of Finance for an exemption. The applications shall be made upon forms supplied by the Director of Finance and shallrecite facts under oath, which qualify the applicant for an exemption. The Director of Finance shall review all applications and certify as exempt those applicantsdetermined to qualify and shall notify all service suppliers affected that the exemption has been approved, stating the name of the applicant, the address to which theexempt service is being supplied, the account number, if any, and any other information as may be necessary for the service supplier to remove the exempt ServiceUser from its tax billing procedure. Upon receipt of this notice, the service supplier shall not be required to continue to bill any further tax imposed by this articlefrom the exempt Service User until further notice by the Director of Finance is given. The service supplier shall eliminate the exempt Service User from its taxbilling procedure no later than 60 days after the receipt of the notice from the Director of Finance.

All applications for exemption for any given fiscal year shall be filed with the Director of Finance on or before the 30th day of April preceding the fiscal year. All exemptions shall continue and be renewed automatically by the Director of Finance so long as the prerequisite facts supporting the initial qualification forexemption shall continue. Upon any change in the service address or residence of the exempt individual, the service supplier, at its option, may either terminate theexemption immediately or continue the exemption until notified by the Director of Finance that the exempt individual has not filed an application for continuation ofexemption within 90 days after the change in the service address or residence. Each individual exempt from the tax may apply to the Director of Finance for a newor continued exemption with each change of address or residence. Any individual exempt from the tax shall notify the Director of Finance within ten days of anychange of fact or circumstance, which might disqualify the individual from receiving the exemption. It shall be a misdemeanor for any Person to knowingly receivethe benefits of the exemption provided by this section when the basis for the exemption does not exist or ceases to exist.

Notwithstanding any of the provisions of this subsection, however, any service supplier who determines by any means that a new or nonexempt Service User isreceiving service through a meter or connection exempt by virtue of an exemption issued to a previous user or exempt user of the same meter or connection, thatservice supplier shall immediately notify the Director of Finance of that fact and the Director of Finance shall conduct an investigation to ascertain whether or notthe provisions of this section have been complied with, and where appropriate, order the service supplier to commence collecting the tax from the nonexemptService User.

Applications for exemptions may be filed during any given fiscal year, for the remaining portion of the fiscal year, provided the application is filed not laterthan the 60th day prior to the commencement of the billing period for the affected utility companies for which the exemption is to commence and shall be validthrough the remainder of that fiscal year, as set forth above.

(c) Individuals 62 years of age or older and disabled individuals, any individual entitled to be exempt from the taxes imposed by this article pursuant toSubsection (a) who used telephone, electric or gas services and paid more than $3.00 in those taxes may, within 12 Months of the date of payment, apply for arefund on forms provided by the Director of Finance. The refund application shall contain a declaration of those facts, under oath that qualify the applicant for arefund, and shall also be accompanied by the customer's original bills showing the amount of the taxes billed by service suppliers during the preceding year. Likewise, refund claims may be filed by an individual who used telephone, electric and gas service and paid the taxes prescribed by this article either directly orindirectly to the Service User rather than the service supplier.

In the event the applicant has lost or destroyed any relevant billings or statements showing the amount of tax paid, or if the applicant indirectly paid the taxes inconjunction with the occupation of any premises without receiving a specific billing from the Service User, or if the applicant has been granted an exemption duringthe year preceding the filing of the refund claim, the maximum refund shall be $18.00, or $1.50 for each full Month of service received by the applicant, whicheveris less.

(d) Except as otherwise provided in this section, refunds of overpaid taxes shall be made in the same manner as is provided in Section 21.07 of this chapterfor refunds of overpayments in Business Taxes.

(e) A Person required to collect and remit taxes imposed under this article may claim a refund or take as credit against taxes collected and remitted theamounts overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Director of Finance thatthe Service User from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amountof the tax so collected has either been refunded to the Service User or credited to charges subsequently payable by the Service User to the Person required to collectand remit.

(f) If any application for an exemption or refund as permitted to be filed by this section is determined to be deficient by the Director of Finance for failureto set forth the facts necessary to qualify the applicant for an exemption or refund or if the Director of Finance has reason to believe the applicant has failed totruthfully set forth those facts, the Director may deny the application by giving written notice of the denial and by stating in the notice the grounds for the denialand mailing the notice in a sealed envelope, postage prepaid, addressed to the applicant at the address shown upon the application. The applicant shall thereafterhave a right to a hearing with the Director of Finance in accordance with a hearing procedure to be established by the Director.

(g) No exemption or refund shall be granted pursuant to this section with respect to any tax imposed by this article, which is or has been paid by a publicagency or where the applicant receives funds from a public agency specifically for the payment of the tax.

(h) If an individual is delinquent in the payment of any utility users tax at the time his claim for refund is filed, the Director of Finance shall apply the

refund or as much of the refund as may be necessary to satisfy the delinquency.

(i) The tax imposed by this article shall not apply to communication, electric and gas services acquired by any nonprofit corporation for the use of itstenants in any housing project in which at least 80 percent of the dwelling units are occupied by a person meeting the requirements for exemption under Subsection(a) of this section.

(j) Upon request of the Director of Finance, a service supplier shall provide a list of the names and addresses of those customers that, according to itsbilling records, are exempt from a tax imposed by this article.

(k) To the extent that the City's authorization to impose or collect the tax imposed in this article is expanded or limited as a result of changes in state orfederal law, no amendment or modification of this article shall be required to conform the tax to those changes, and the tax shall be imposed and collected to thefull extent of the City's authorization up to the full amount of the tax imposed by the terms of this article.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.13. AMENDMENT OR REPEAL. (Added by Ord. No. 179,686*, Eff. 3/15/08.)

This Communications Users Tax imposed by this article may be decreased, repealed or amended by the City Council, but may not be increased without a voteof the people as required in California Constitution Article XIIIC and California Government Code Section 53750(h).

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.14. AUDIT OF COMMUNICATIONS USERS TAX. (Added by Ord. No. 179,686*, Eff. 3/15/08.)

The City shall annually verify that the Communications Users Tax imposed by this article has been properly collected and remitted in accordance with thisarticle, and properly expended according to applicable law. The annual verification shall be performed under the direction of the Director of Finance by a qualifiedindependent third party employing reasonable, cost-effective procedures.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

SEC. 21.1.15. SEVERABILITY. (Added by Ord. No. 179,686*, Eff. 3/15/08.)

If any portion of this ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of thisordinance shall remain in effect. The people of the City of Los Angeles hereby declare that they would have adopted each portion of this ordinance,notwithstanding the fact that any one or more portions of this ordinance is declared invalid or unenforceable and, to that end, the provisions of this ordinance areseverable.

* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meetingof March 5, 2008.

ARTICLE 1.21984 OLYMPIC GAMES TICKET DISTRIBUTION TAX

(Added by Ord. No. 150,802 Eff. 6/5/78.)

Section21.2.1 Definitions.21.2.2 Imposition of Tax.21.2.3 Time of Reporting and Payment.21.2.4 Manner of Reporting.21.2.5 Interest and Penalty.21.2.6 Actions to Collect.21.2.7 Additional Powers and Duties of Director of Finance.

21.2.8 Assessment – Administrative Remedy.21.2.9 Records.21.2.10 Refunds.

SEC. 21.2.1. DEFINITIONS.

Except where the context otherwise requires, the definitions set forth in this section shall govern the construction of this article:

(a) “Admission” shall include every act of entry by a person to any portion of any premises.

(b) “Attend” shall include the terms listen, observe, see, view, witness, watch, enjoy, or be present at.

(c) “Distribution” shall include sale or any other transfer of ownership or possession of any ticket.

(d) “Event” shall include any exhibition, fair, sport, meeting, performance, race, demonstration, broadcast, entertainment, motion picture, show,feature, play, contest, game, or attraction, which is part of the 1984 Olympic Games.

(e) “Gross receipts” shall mean and include only the amount of the price thereof stated on each ticket of admission to any premises or attendanceat any event. (Amended by Ord. No. 158,589, Eff. 1/29/84.)

(f) “Person” shall include any individual, firm, association, organization, partnership, joint venture, social club, joint stock company, corporation,estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

(g) “Premise” shall include any property, building, structure, enclosure, location or place, whether improved or not, at, in, or upon which any eventis conducted, or at or from which any event may be attended.

(h) “Promoting” shall include conducting, operating or staging the 1984 Olympic Games.

(i) “Ticket” shall include any ticket, pass, certificate, book, card, insignia, or other device, authority or token, the ownership or possession of whichentitles the owner or holder thereof to admission to or attendance at any event.

SEC. 21.2.2. IMPOSITION OF TAX.

(a) For the privilege of distributing any ticket of admission to or attendance at any event which is part of the 1984 Olympic Games, a tax is herebyimposed on every person distributing any such ticket and promoting said Olympic Games.

(b) The tax imposed hereby shall be at the rate of six percent (6%) of the gross receipts attributable to distribution of tickets of admission to or attendanceat events of the 1984 Olympic Games.

SEC. 21.2.3. TIME OF REPORTING AND PAYMENT.

On or before the last day of the calendar month following the close of each calendar month, every person required to pay the tax imposed by this article shallrender a statement to the Director of Finance, in the manner provided in Section 21.2.4, of all gross receipts attributable to the distribution of tickets of admission toor attendance at Olympic events during the calendar month preceding such statement. At the time each statement is filed, the full amount of tax, plus any interestand penalties due under this article for the period covered by such statement shall be paid to the Director of Finance.

SEC. 21.2.4. MANNER OF REPORTING.

At the time required by Section 21.2.3, every person required to pay the tax imposed by this article shall file with the Director of Finance, in such form andmanner as may be prescribed by or acceptable to the Director of Finance, a written statement setting forth the period of time covered therein, the total amount ofgross receipts subject to tax for such period, the total amount of tax due under this article, and such other information as may be required by the Director of Financeto permit a complete audit and examination of the books and records supporting the contents of such statement. Such statement shall be dated and subscribed by theindividual responsible therefor, whose capacity shall be indicated, who shall declare or certify under penalty of perjury that the information contained therein is, tothe best of such individual’s information, knowledge and belief, true and correct.

SEC. 21.2.5. INTEREST AND PENALTY.

(a) Taxes which are not paid to the Director of Finance on or before the due date of the statement within which they are to be included under this articleshall be delinquent.

(b) Interest and penalties for delinquency in payment of any tax owing or any deficiency determination shall attach and be paid by the person required topay at the rates and in the manner as is provided in Section 21.05 of this chapter for delinquency in payment of business tax.

(c) Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required to be paid.

SEC. 21.2.6. ACTIONS TO COLLECT.

Any tax required to be paid under the provisions of this article shall be deemed a debt owed to the City by the person required to pay such tax. Any personowing such tax to the City shall be liable to an action brought in the name of the City for recovery of such amount of tax.

SEC. 21.2.7. ADDITIONAL POWERS AND DUTIES OF DIRECTOR OF FINANCE.

(a) The Director of Finance shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this article.

(b) In administering and enforcing the provisions of this article, the Director of Finance shall have the same powers and duties with respect to collectingthe tax provided herein as the Director of Finance has under Section 21.15 of this chapter with respect to collecting the business tax.

SEC. 21.2.8. ASSESSMENT – ADMINISTRATIVE REMEDY.

Whenever the Director of Finance determines that any tax is or may be due to the City under the provisions of this article, the Director of Finance may makeand give notice of an assessment of such tax. The manner of making and providing notice of such assessment, the right to a hearing, the manner of providing for andconducting such hearing, the preparation and service of the decision and the manner of filing and passing upon exceptions shall be the same as provided in Section21.16 of this chapter.

SEC. 21.2.9. RECORDS.

It shall be the duty of every person required to pay the tax imposed by this article to keep and preserve for a period of four (4) years all records as may benecessary to determine the amount of such tax as such person may have been liable to pay to the City, which records the Director of Finance shall have the right toinspect at all reasonable times.

SEC. 21.2.10. REFUNDS.

Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City under thisarticle, refund of such amount shall be made in the same manner as is provided in Section 21.07 of this chapter for refunds of overpayments of business tax.

ARTICLE 1.3COMMERCIAL TENANT’S OCCUPANCY TAX

(Added by Ord. No. 140,705, Eff. 9/10/70, Oper. 1/1/71.)

Section21.3.1 Constitutional Exemptions.21.3.2 Definitions.21.3.3 Tax Imposed.21.3.4 Exemptions.21.3.5 Duty to Collect and Remit Tax.21.3.6 Interest and Penalty.21.3.7 Actions to Collect.21.3.8 Additional Powers and Duties of the Director of Finance.21.3.9 Assessment – Administrative Remedy.21.3.10 Records.21.3.11 Refunds.

SEC. 21.3.1. CONSTITUTIONAL EXEMPTIONS.

Nothing in this ordinance shall be construed as imposing a tax upon any person when imposition of such a tax upon that person would be in violation of theConstitution of the United States or that of the State of California.

SEC. 21.3.2. DEFINITIONS.

(a) For the purposes of this article, the terms hereafter defined shall have the following meanings:

Person shall mean any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation,estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

(b) Lessor shall include a sub-lessor, a licensor or a person granting a concession.

(c) Tenant and Tenancy shall include tenants and tenancies of all types, and persons occupying and the occupation of a building or structure, or space in abuilding or structure, or a boat slip or mooring, under any license or any concession agreement with a lessor. The right to use or possess such space shall be deemedto be the same as actual occupation. (First Sentence Amended by Ord. No. 163,754, Eff 7/16/88.)

(d) Casual Tenant and Casual Tenancy shall mean any tenant or tenancy where the consideration paid or agreed to be paid consists exclusively ofservices; or where, after examining all the facts, the Director of Finance determines that the only tenancy is that of one or more tenants paying to a sub-lessorprimarily on a cost-sharing basis for the space used involving less than 25% of the space under the control of the sub-lessor and is terminable at will.

(e) Charges shall include all amounts paid by a tenant to a lessor for services performed, or materials used, or utilities or facilities furnished by the lessoron the premises or in connection with the tenant’s use, possession, or the right to possess the premises. Charges shall also include any charges paid by a tenant to alessor for the use or possession of land, or the right to use or possess land other than that upon which the building or structure is located but which is used orpossessed or is available for use or possession by a tenant for purposes related to his tenancy. Charges shall also include all amounts paid as prepaid rent.

SEC. 21.3.3. TAX IMPOSED. (Amended by Ord. No. 141,620, Eff. 4/3/71.)

For the privilege of occupancy as hereafter described, an excise tax is hereby imposed on every tenant renting a building or structure of any kind on landlocated in the City of Los Angeles from a lessor for purposes other than dwelling, sleeping or lodging, or renting space or the use or possession of space, or the rightto use or possess space in such a building or structure for such purposes, and upon every tenant renting a boat slip or mooring, at the rate of $1.48 per calendarquarter or fractional part thereof for the first $1,000.00 or less of charges attributable to said calendar quarter, plus $1.48 per calendar quarter for each additional$1,000.00 of charges or fractional part thereof in excess of $1,000.00. For the purposes of this article, the privilege of occupancy shall, unless an exemption orpartial exemption is provided herein, include renting by a tenant of every kind and character, without regard to the length of the term of the tenancy or the date of itscommencement, expiration or renewal. A tenant otherwise subject to the tax imposed herein shall not be exempt therefrom by reason of the fact that one or morepersons may reside within the building or structure where either the primary purpose of the particular tenancy or the primary use or right of use by the particulartenant is for some purpose other than dwelling, sleeping or lodging. Nor shall a tenant otherwise subject to the tax imposed herein be exempt therefrom by reason ofthe act that he proposes to operate or does in fact operate the building or structure as a premises for a business subject to tax under Sec. 21.99 of this chapter. (FirstSentence Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

SEC. 21.3.4. EXEMPTIONS.

Tenants holding the following kinds of tenancies are exempt from the tax imposed by this article.

(a) Tenants to the extent they become so by placing goods in a warehouse or similar structure for storage or safekeeping.

(b) Tenants to the extent they became so by parking or storing an automobile in a building or structure.

(c) Tenants to the extent they become so by being admitted to a theater, exhibition hall or any similar place of public assemblage or entertainment.

(d) Casual tenants.

(e) Tenants to the extent they become so by placing coin-operated machines and devices on or within a premises under the control of the lessor.

(f) Tenants of a person subject to taxation for engaging within the City of Los Angeles in a business described in Sec. 21.98 of this chapter.

(g) Tenants conducting, operating, promoting, or sponsoring a bona fide trade show, as is defined in Section 21.168.4 of Article 1 of Chapter 2,where the show does not exceed 14 days, and their tenants. (Added by Ord. No. 147,632, Eff. 10/2/75.)

(h) Tenants to the extent they become so by being exhibitors at an antique show or collectors’ exchange show or vendors at a swap meet. (Addedby Ord. No. 161,524, Eff. 8/17/86.)

(i) Tenants to the extent they become so by using a boat slip or mooring exclusively for commercial purposes. (Added by Ord, No. 163,754, Eff.7/16/88.)

SEC. 21.3.5. DUTY TO COLLECT AND REMIT TAX.

(a) The tax imposed by this article shall be collected from the tenant by the lessor. The amount of tax collected in one calendar quarter shall be remitted tothe Director of Finance on or before the last day of the month following the close of each calendar quarter. The tax shall be collected insofar as practicable at thesame time as and along with the charges made in accordance with the lessor’s regular billing practice. If the amount paid by a tenant is less than the full amount ofthe charge and the tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid.

(b) The duty to collect tax from a tenant shall commence with the first payment of charges by the tenant on or after the operative date of this article.

SEC. 21.3.6. INTEREST AND PENALTY.

(a) Taxes collected from a tenant which are not remitted to the Director of Finance on or before the due dates provided in this article are delinquent. Taxespayable hereunder for periods other than quarterly periods shall be deemed delinquent at the times designated by the Director of Finance in his rules andregulations.

(b) Interest and penalties for delinquency in remittance of any tax collected, or any deficiency determination shall attach and be paid by the person requiredto collect and remit at the rates and in the same manner as is provided in Sec. 21.05 of this chapter for delinquency in payment of Business Tax.

(c) The Director of Finance shall have power to impose additional penalties upon persons required to collect and remit taxes under the provisions of thisArticle for fraud or negligence in reporting and remitting in the same manner and at the same rates as are provided in Sec. 21.05 of this Chapter for such penaltiesupon persons required to pay Business Tax.

(d) (Amended by Ord. No. 174,085, Eff. 8/19/01.) For collection purposes only, every penalty imposed and such interest as accrues under the provisionsof this section shall become a part of the tax herein required to be remitted.

SEC. 21.3.7. ACTIONS TO COLLECT.

Any tax required to be paid by a tenant under the provisions of this article shall be deemed a debt owed by the tenant to the City. Any such tax collected froma tenant which has not been remitted to the Director of Finance shall be deemed a debt owed to the City by the person required to collect and remit. Any personowing money to the City under the provisions of this article shall be liable to an action brought in the name of the City for the recovery of such amount.

SEC. 21.3.8. ADDITIONAL POWERS AND DUTIES OF THE DIRECTOR OF FINANCE.

(a) The Director of Finance shall have the power and duty and is hereby directed to enforce each and all of the provisions of this article.

(b) In administering and enforcing the provisions of this article, the Director of Finance shall have the same powers and duties with respect to collectingthe tax provided herein as he has under Sec. 21.15 of this chapter with respect to collecting the Business Tax.

(c) The provisions of Sections 21.17, 21.20, and 21.21 of this chapter shall apply to the administration and collection of the tax imposed under theprovisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

(d) Where the Director of Finance determines that efficiency in the administration of the tax would be promoted, he may establish reporting periods greaterthan quarterly, but not to exceed one year, for lessors who rent only occasionally. The Director of Finance may establish shorter reporting periods for any lessor ifhe deems it necessary in order to insure collection of the tax.

SEC. 21.3.9. ASSESSMENT – ADMINISTRATIVE REMEDY.

(a) The Director of Finance may make an assessment for taxes not remitted by a person required to remit for any reason specified in Sec. 21.16 of thischapter for making an assessment for unpaid Business Tax. The Manner of making and providing notice of such assessment the right to a hearing and the conduct ofsuch hearing; the preparation and service of findings, filing exceptions, and passing upon exceptions shall be the same as provided in Sec. 21.16 of this chapter.

SEC. 21.3.10. RECORDS.

(Amended by Ord. No. 173, 587, Eff. 12/7/00.)

Each person required to collect any tax imposed by this article must keep, for a period of four years, all records necessary to determine the amount of the taxthat he or she was responsible for collecting. The Office of Finance has a right to inspect those records at any reasonable time.

SEC. 21.3.11. REFUNDS.

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Director ofFinance under this article it may be refunded as provided in this section. Except as otherwise provided in this section, refunds of overpaid taxes shall be made in thesame manner as provided in Sec. 21.07 of this chapter for refunds of overpayments in Business Taxes.

(b) A person required to collect and remit taxes imposed under this article may claim a refund or take as credit against taxes collected and remitted theamount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Director of Finance thatthe tenant from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of thetax so collected has either been refunded to the tenant or credited to charges subsequently payable by the tenant to the person required to collect and remit.

(c) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlementthereto.

ARTICLE 1.5USE TAX [Suspended]

(Added by Ord. No. 90,806, Eff. 8/19/46; Suspended by Ord. No. 107,030, adding Art. 1.6 to Code, Eff. 4/1/56)

Section21.5.01 Title.21.5.02 Definitions.21.5.03 Use Tax – Imposition.21.5.04 Levy Similar to State Sales and Use Tax Law.21.5.05 Tax Levy – Provisions of.21.5.06 Prior Purchase Exemption.21.5.07 Authorization of Collections.21.5.08 Personal Property – Tax Liability.21.5.09 Collection by Retailer.21.5.10 Separate Listing of Tax.21.5.11 Agents – Registration of.21.5.12 Exempted Purchases.21.5.13 Re-sale Certificate.21.5.14 Commingled Goods.21.5.15 Returns, Contents of.21.5.16 Delinquencies and Extensions.21.5.18 Administration and Enforcement.21.5.19 Inclusion of State Clauses.21.5.20 False or Fraudulent Returns.21.5.21 Validity of Article.

SEC. 21.5.01. TITLE.

This article is known and may be cited as the Use Tax Ordinance for the City of Los Angeles.

SEC. 21.5.02. DEFINITIONS. (Amended by Ord. No. 136,867, Operative 9/1/68 by Ord. No. 137,011.)

The following words and phrases, whenever used in this article shall be construed as defined in this section unless it appears from the context that a differentmeaning is intended.

(a) “Sales Price” means that total amount for which tangible personal property is sold, valued in money, whether paid in money or otherwise,without any deduction on account of any of the following:

1. The cost of the property sold;

2. The cost of materials used, labor or service cost, interest charged, losses, or any other expenses;

3. The cost of transportation of the property prior to its purchase, except as excluded by other provisions of this section.

The total amount for which the property is sold includes all of the following:

1. Any services that are a part of the sale;

2. Any amount for which credit is given to the purchaser by the seller.

3. The amount of any tax imposed by the State of California that is conclusively presumed to be a direct tax on the retail consumerprecollected by the seller for the purpose of convenience and facility only.

“Sales Price” does not include any of the following:

1. Cash discounts allowed and taken on sales;

2. The amount charged for property returned by customers when that entire amount is refunded either in cash or credit, but this exclusionshall not apply in any instance when the customer, in order to obtain the refund is required to purchase other property at a price greater than theamount charged for the property that is returned. For the purpose of this section refund or credit of the entire amount shall be deemed to be givenwhen the purchase price less rehandling and restocking costs are refunded or credited to the customer.

3. The amount charged for labor or services rendered in installing or applying the property sold.

4. The amount of any federal tax, (not including, however, any manufacturers’ or importers’ excise tax) imposed upon or with respect toretail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of federal tax is stated to customersas a separate charge, and the amount of any California State or local sales or use tax.

5. Separately stated charges for transportation from the retailer’s place of business or other point from which shipment is made directly tothe purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer oftransportation by other than facilities of the retailer; provided, that if the transportation is by facilities of the retailer, or the property is sold for adelivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the purchase of the property is made.

6. The amount of any motor vehicle fee or tax imposed by and paid to the State of California that has been added to or is measured by astated percentage of the sales or purchase price of a motor vehicle.

(b) “Use” includes the exercise of any right or power over tangible personal property incident to the ownership of that property subject, however, tothe following exceptions:

1. It does not include the sale of that property in the regular course of business.

2. It does not include the keeping, retaining or exercising of any right or power over tangible personal property shipped or brought into thisCity and which is thereafter transported outside the City for principal use or consumption outside the City, and which property is actually so used orconsumed.

3. It does not include the use of such property for the purpose of being processed, fabricated, or manufactured into, attached to orincorporated into, other tangible personal property which is to be transported outside the City and thereafter used principally outside the City, orwhich is to be subsequently sold or resold in the regular course of business.

4. It does not include the exercise of any right or power over tangible personal property incident to ownership of that property if suchproperty is shipped to a point outside this City pursuant to the contract of sale by delivery by the retailer to such a point by means of

(A) facilities operated by the retailer;

(B) delivery by the retailer to a carrier for shipment to a consignee at such point; or

(C) delivery by the retailer to a customer’s broker or forwarding agent for shipment outside this City; or such property sold topurchasers engaged in business wholly or partly outside the City of Los Angeles where the property is to be transported outside the Citywithout undue delay; to be used only outside the City in such business. The purchaser shall deliver to the seller such certificate or other

evidence of the proposed transportation and use mentioned herein as may be required by the rules and regulations of the Director of Finance.

SEC. 21.5.03. USE TAX – IMPOSITION. (Amended by Ord. No. 137,130, Oper. 10/1/68.)

An excise tax is hereby imposed on the storage, use or other consumption in this City of tangible personal property purchased from any retailer on or afterOctober 1, 1968, to and including March 31,1969, for storage, use or other consumption in the City of Los Angeles, at the rate of one percent of the sales price ofthe property.

Notwithstanding the foregoing provisions of this section, no excise tax is imposed by this section where the sales price of tangible personal property purchasedfor storage, use or other consumption in the City of Los Angeles was fixed pursuant to a contract of sale actually executed in good faith prior to October 1,1968.

SEC. 21.5.04. LEVY SIMILAR TO STATE SALES AND USE TAX LAW.

The tax hereby levied, except as otherwise provided is levied in the same manner and to the same extent and under the same conditions as use taxes are leviedpursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the “Sales and Use Tax Law,” as amended and in force and effect onOctober 1, 1968. (Amended by Ord. No. 137,130, Operative 10/1/68.)

SEC. 21.5.05. TAX LEVY – PROVISIONS OF.

(a) All of the provisions of the Sales and Use Tax Law, Part 1, Division 2, of the Revenue and Taxation Code of the State of California, as amended and inforce and effect on October 1, 1968, except the provisions pertaining solely to the sales tax and Sections 6001 to 6004, inclusive, 6008, 6009, 6010.5, 6011, 6201 to6204, inclusive, 6206, 6207, 6226, 6241 to 6246, inclusive, 6271 to 6292, inclusive, 6453, 6459, 6470, 6481 to 6592, inclusive, 6701 to 6828, inclusive, 6901 to6981, inclusive, 7051 to 7057, inclusive, 7101 to 7154, inclusive, and 7176 are hereby adopted and made a part of this section as though fully set forth herein, andall provisions of the Los Angeles Municipal Code in conflict therewith are inapplicable to this article and the tax hereby imposed. (Amended by Ord. No. 137,130,Operative 10/1/68.)

(b) The word “storage,” as used in this article includes any keeping or retention in the City for any purpose except sale in the regular course of business orsubsequent use solely outside the City of tangible personal property purchased from a retailer.

(c) All the provisions of the Revenue and Taxation Code hereby adopted providing for the performance of official action on the part of the State Board ofEqualization shall be performed by the Director of Finance of the City of Los Angeles.

(d) The City of Los Angeles shall be deemed substituted for the State of California wherever the State is referred to in said provisions.

(e) The term “Sales Tax,” as used in said provisions, shall refer to the tax imposed by Section 21.199 of this Code.

(f) The Mayor of the City of Los Angeles shall be deemed substituted for the Governor whenever the Governor is referred to in said provisions.

(g) All taxes hereby levied shall be payable to the Director of Finance of the City of Los Angeles and any civil suit for the collection thereof may be filedin any court of competent jurisdiction in the State of California and the City Attorney of said City shall prosecute the action.

SEC. 21.5.06. PRIOR PURCHASE EXEMPTION.

Except as otherwise specifically exempted, the tax hereby imposed applies to all tangible personal property purchased from a retailer and located in this City,provided, however, that if the purchaser proves to the satisfaction of the Director of Finance that the property was purchased prior to the effective date of this article,as revised in 1968, or was not purchased for use or consumption in this City and has not been nor will be so used or consumed, he shall be relieved of liability topay the tax. (Amended by Ord. No. 136,867, Operative 9/1/68 by Ord. No. 137,011.)

SEC. 21.5.07. AUTHORIZATION OF COLLECTIONS. (Amended by Ord. No. 137,733, Eff. 12/30/68.)

Every retailer maintaining a place of business in the City of Los Angeles shall apply to the Director of Finance for authorization to collect the tax herebyimposed from any person purchasing property from such retailer, the use or consumption of which is taxable hereunder. Upon receipt of any application in suchform as required by him, the Director of Finance may authorize the applicant to make such collections and to forward the same to the Director of Finance. Nothingin this article, however, shall require a retailer maintaining places of business both within and outside the City to collect the tax imposed under this article frompersons who purchase property from a place of business maintained by such retailer outside the City.

SEC. 21.5.08. PERSONAL PROPERTY – TAX LIABILITY.

Every person using or otherwise consuming in this City tangible personal property purchased from a retailer is liable for the tax; provided, however, no taxshall be due hereunder if the tax imposed by Section 21.199 of this Code has been paid on the sale of such property. His liability is not extinguished until the taxhas been paid to this City, except that a receipt from a retailer, authorized pursuant to Section 21.5.07 given to the purchaser pursuant to Section 21.5.09 hereof, issufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

SEC. 21.5.09. COLLECTION BY RETAILER.

Every retailer maintaining a place of business in this City who is authorized by the Director of Finance to collect the tax imposed by this article and who makessales of tangible personal property for use or other consumption in this City not exempted under the provisions of this article, shall collect the tax from thepurchaser at the time of making the sale, or, if the use or other consumption of the tangible personal property is not then taxable hereunder, at the time the use orother consumption becomes taxable. Upon collecting the tax the retailer, on demand, shall give to the purchaser a receipt therefor in the manner and form prescribedby the Director of Finance. In all cases in which the tax is not collected by the retailer as aforesaid, the person upon whom such tax is imposed shall pay the samewhen due to the Director of Finance or his authorized agent. The tax so collected by the retailer constitutes a debt owed by the retailer to the City and it shall beunlawful for such retailer to fail to pay the same to the City in the manner and at the times elsewhere provided in this article.

SEC. 21.5.10. SEPARATE LISTING OF TAX.

The tax so collected by the retailer from the purchaser shall be displayed separately from the list price, the price advertised in the premises the marked price orother price on the sales check or other proof of sale.

SEC. 21.5.11. AGENTS – REGISTRATION OF.

Every retailer selling tangible personal property for use or other consumption in this City and which retailer maintains a place of business in this City or actsthrough agents located in this City, and which retailer is not registered under the provisions of Section 21.199 of the Los Angeles Municipal Code shall registerwith the Director of Finance and give the name and address of such agent or agents and offices or other places of business in the City.

SEC. 21.5.12. EXEMPTED PURCHASES.

In addition to those exemptions contained in Part 1 of Division 2 of the California Revenue and Taxation Code which are incorporated into this article byreference, there shall be excluded from the computation of the tax the sales price of:

(1) Purchases made by the State of California or by any agency, department, political subdivision, district or municipal corporation thereof.

(2) (None)

(3) (None)

(4) Purchases of motor vehicle fuel, the distribution of which in the State of California is subject to the tax imposed by Part 2 of Division 2 of theCalifornia Revenue and Taxation Code, except that users of motor vehicle fuel on which the motor vehicle fuel tax is refunded shall be liable for the taximpose by this article at the time and in the manner herein provided.

SEC. 21.5.13. RE-SALE CERTIFICATE.

The Director of Finance may at his option accept a State of California re-sale certificate as evidence that any sale is not a sale for use or consumption, or hemay in his discretion require an affidavit from the buyer setting forth such information respecting such sale as he deems necessary to determine the nature of suchsale.

SEC. 21.5.14. COMMINGLED GOODS.

If the purchaser of fungible goods commingles such goods with other fungible goods not so purchased but of such similarity that the identity of the constituentgoods in the commingled mass cannot be determined and thereafter withdraws for use a part of such commingled goods, his withdrawals shall be deemed to be fromthe goods not so purchased until a quantity of commingled goods equal to the quantity of goods not so purchased but so commingled has been withdrawn.

SEC. 21.5.15. RETURNS, CONTENTS OF.

Each return filed by a retailer shall show the total sale price of the property sold by him during the reporting period in respect of which he collected the taxhereby imposed. Each return filed by a purchaser shall show the total sale price of the property purchased by him during the reporting period in respect of which atax is due hereunder.

All returns shall show the amount of the taxes for the period covered by the return and such other information as the Director of Finance deems necessary forthe proper administration of this article.

SEC. 21.5.16. DELINQUENCIES AND EXTENSIONS.

(a) The Director of Finance for good cause may extend for not more than 45 days the time for making any return or paying any sum required to be paidhereunder. The extension may be granted at any time provided a written request therefor is filed with the Director of Finance prior to the delinquency date.(Amended by Ord. No. 136,867, Operative 9/1/68 by Ord. No. 137,011.)

(b) All taxes payable hereunder shall be deemed delinquent if not paid within the time required. Whenever any tax required to be paid by this section isnot paid on or before the date on which it becomes delinquent, penalties and interest shall accrue and deficiency determinations shall be made in the mannerprovided in Section 21.05 and Section 21.15.

SEC. 21.5.18. ADMINISTRATION AND ENFORCEMENT.

(a) The Director of Finance shall administer and enforce the provisions of this article following procedures prescribed in Sections 21.00 to 21.49, inclusive,of this Code, insofar as they are not inconsistent with the provisions of this article, and, with the approval of the City Attorney, shall prescribe, adopt and enforcerules and regulations, for the purpose of administering and enforcing this article, and prescribing methods for the collection and payment of the tax. Such schedulesshall conform as nearly as practicable to the sales tax reimbursement schedule provided in Subsection (b) of Section 21.199. Such schedules may be so determinedas to facilitate collection of this tax at the same time as the retailer collects the tax imposed under the California Sales and Use Tax Law.

Such rules and regulations may, among other things, require each person affected by this article to keep such records, receipts, invoices and other pertinentpapers as the Director of Finance may deem necessary for the purposes of administering and enforcing this article. (Amended by Ord. No. 137,130, Oper. 10/1/68.)

(b) Inasmuch as this article is patterned after the use tax provisions of the Revenue and Taxation Code of the State of California, and the State Board ofEqualization has made various rules and regulations pertaining to the interpretation, administration and enforcement of such provisions of the Revenue and TaxationCode, it may be reasonably assumed that the City of Los Angeles will be confronted with many of the problems dealt with in the state rules and regulations, eachsuch rule and regulation in so far as applicable, shall apply in the interpretation of this article until specifically abandoned by rules and regulations adopted by theDirector of Finance pursuant to the authority of this article.

SEC. 21.5.19. INCLUSION OF STATE CLAUSES.

The inclusion of any clause, portion or part of the State Sales and Use Tax Law, Part 1, Division 2, of the Revenue and Taxation Code of the State of Californiaverbatim in this section shall not in or of itself be deemed to exclude any of the remaining provisions of said Sales and Use Tax that are made a part hereof byreference only.

SEC. 21.5.20. FALSE OR FRAUDULENT RETURNS.

Any person required to make, render, sign or verify any report or return under the provisions of this article who makes any false or fraudulent return withintent to defeat or evade the determination of an amount due and required to be paid hereunder, or who fails to make any required return to the Director of Finance,or who fails to pay any tax imposed by the provisions of this Article, or who violates any of the other terms of this article, is guilty of a misdemeanor.

SEC. 21.5.21. VALIDITY OF ARTICLE.

If any section, subsection, sentence, clause, phrase or portion of this article, including but not limited to any exemption is for any reason held to be invalid orunconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this article. TheCouncil of the City hereby declares that it would have adopted this article and each section, subsection, sentence, clause, phrase or portion thereof irrespective of thefact that any one or more sections, subsections, clauses, phrases, or portions be declared invalid or unconstitutional.

ARTICLE 1.6UNIFORM SALES AND USE TAX

(Added by Ord. No. 107,030, Eff. 4/1/56.)

Section21.6.1 Short Title.21.6.2 Purpose.21.6.3 Operative Date – Contract with State.21.6.4 Sales Tax.21.6.5 Use Tax.21.6.6 Amendments.21.6.6.1 Application of Provisions Relating to Exclusions and Exemptions.21.6.7 Enjoining Collection Forbidden.21.6.8 Existing Sales and Use Tax Ordinances Suspended.21.6.9 Severability.21.6.10 Use Tax Incentive Program.

SEC. 21.6.1. SHORT TITLE.

This article shall be known as the Uniform Local Sales and Use Tax Ordinance of the City of Los Angeles.

SEC. 21.6.2. PURPOSE.

The City Council of the City of Los Angeles hereby declares that this ordinance is adopted to achieve the following, among other, purposes, and directs that theprovisions hereof be interpreted in order to accomplish those purposes:

(a) To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenueand Taxation Code of the State of California;

(b) To adopt a sales and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the State of Californiainsofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the said Revenue and TaxationCode;

(c) To adopt a sales and use tax ordinance which imposes a one per cent (1%) tax and provides a measure therefor that can be administered andcollected by the State Board of Equalization in a manner that adapts itself as fully as practical to, and requires the least possible deviation from, the existingstatutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and UseTaxes;

(d) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions ofPart 1.5 of Division 2 of the said Revenue and Taxation Code, minimize the cost of collecting city sales and use taxes and at the same time minimize theburden of record keeping upon persons subject to taxation under the provisions of this ordinance;

(e) (None)

SEC. 21.6.3. OPERATIVE DATE – CONTRACT WITH STATE.

This ordinance shall become operative on April 1, 1956, and prior thereto this City shall contract with the State Board of Equalization to perform all functionsincident to the administration and operation of this sales and use tax ordinance, provided, that if this City shall not have contracted with the said State Board ofEqualization, as above set forth, prior to April 1, 1956, this ordinance shall not be operative until the first day of the first calendar quarter following the executionof such a contract by the City and by the State Board of Equalization; provided, further, that this ordinance shall not become operative prior to the operative date ofthe Uniform Local Sales and Use Tax Ordinance of the County of Los Angeles.

SEC. 21.6.4. SALES TAX.

(a) (1) For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the City at the rate of one percent (1%) of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City of Los Angeles on and after the operativedate of this ordinance.

(2) (Amended by Ord. No. 120,455, Eff. 12/22/61, Operative 1/1/62.) For the purposes of this ordinance, all retail sales are consummated at theplace of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to acommon carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject

to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or hasmore than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to beprescribed by the Board of Equalization.

(b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the saidRevenue and Taxation Code, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on April 1, 1956, applicable tosales taxes are hereby adopted and made a part of this section as though fully set forth herein.

(2) Wherever, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the State of California is named or referred toas the taxing agency, the City of Los Angeles shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of thename of the City of Los Angeles for the word “State” when that word is used as part of the title of the State Controller, the State Treasurer, the State Board ofControl, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the State of California; nor shall the name of the City besubstituted for that of the State in any section when the result of that substitution would require action to be taken by or against the City or any agencythereof, rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance;and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections referring to the exteriorboundaries of the State of California, where the result of the substitution would be to provide an exemption from this tax with respect to certain grossreceipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the State under the provisions of Part 1 ofDivision 2 of the said Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by theState under the said provisions of that Code; and, in addition, the name of the City shall not be substituted for that of the State in Sections 6701, 6702(except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted.

(3) If a seller’s permit has been issued to a retailer under Section 6067 of the said Revenue and Taxation Code, an additional seller’s permit shallnot be required by reason of this section. (Amended by Ord. No. 145,139, Eff. 11/4/73, Operative 1/1/74.)

(4) There shall be excluded from the gross receipts by which the tax is measured:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) Receipts from sales to operators of common carrier and waterborne vessels of property to be used or consumed in the operation of suchcommon carriers or waterborne vessels principally outside the City. (Former (ii) Repealed and Replaced by Former (iii), Ord. No. 120,455, Eff.12/22/61. Operative 1/1/62.)

(4.5) (Amended by Ord. No. 158,588, Eff. 12/29/83, Oper. 1/1/84.) There shall be excluded from the gross receipts by which the tax is measured:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) The gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the cityin which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of thelaws of this state, the United States, or any foreign government.

*(4.5) There shall be excluded from the gross receipts by which the tax is measured:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) The gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principallyoutside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(iii) The gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the cityin which the sale is made and directly and exclusively in the use of such aircraft as common carriers or persons or property under the authority of thelaws of the state, the United States, or any foreign government.

* The provisions of this Subparagraph (4.5) shall become operative on the operative date of any act of the Legislature of the State of California which amends or repeals and re-enactsSection 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same or substantially the same language asthat existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

SEC. 21.6.5. USE TAX.

(a) An excise tax is hereby imposed on the storage, use or other consumption in the City of Los Angeles of tangible personal property purchased from anyretailer on or after the operative date of this ordinance, for storage, use or other consumption in the City at the rate of one per cent (1%) of the sales price of theproperty. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made.

(b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the saidRevenue and Taxation Code, all of the provisions of Part 1, Division 2 of said Code, as amended and in force and effect on April 1, 1956, applicable to use

taxes are hereby adopted and made a part of this section as though fully set forth herein.

(2) Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code the State of California is named or referred to as thetaxing agency, the name of the City shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of the name of theCity for the word “State” where the word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Boardof Equalization, or the name of the State Treasury, or of the Constitution of the State of California, nor shall the name of the City be substituted for that of theState in any section where the result of that substitution would require action to be taken by or against the City or any agency thereof rather than by oragainst the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance, and neither shall thesubstitution be deemed to have been made in those sections, including but not necessarily limited to sections referring to the exterior boundaries of the Stateof California, where the result of the substitution would be to provide an exemption from the tax with respect to certain storage, use or other consumption ortangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumption remains subject to tax by theState under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code, or to impose this tax with respect to certain storage, use or otherconsumption of tangible personal property which would not be subject to tax by the State under the provisions of that Code, and in addition, the name of theCity shall not be substituted for that of the State in Sections 6701, 6702 (except in the last sentence thereof). 6711, 6715, 6737, 6797 and 6828 of the saidRevenue and Taxation Code as adopted and the name of the City shall not be substituted for the word “State” in the phrase “retailer engaged in business inthis State” in Section 6203 nor in the definition of that phrase in Section 6203. (Amended by Ord. No. 120,455, Eff. 12/22/61.)

(3) There shall be exempt from the tax due under this section:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) The storage, use or other consumption of tangible personal property, the gross from the sales of which has been subject to sales taxunder a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county,county, or city in this State. (Amended by Ord. No. 120,455, Eff. 12/22/61, Operative 1/1/62.)

(iii) The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in thegeneration, transportation or distribution of electricity, or in the manufacture, transportation or distribution of gas in intrastate, interstate or foreigncommerce by public utilities which are regulated by the Public Utilities Commission of the State of California.

(iv) The use or consumption of property purchased by operators of common carrier or waterborne vessels to be used or consumed in theoperation of such common carriers or waterborne vessels principally outside the City.

(3.5) (Amended by Ord. No. 158,588, Eff. 12/29/83, Oper. 1/1/84.) There shall be exempt from the tax due under this section:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to salestax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county,county, or city in this state.

(iii) In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code, the storage, use, or otherconsumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in theuse of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issuedpursuant to the laws of this state, the United States, or any foreign government.

*(3.5) There shall be exempt from the tax due under this section:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to salestax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county,county, or city in this state.

(iii) The storage, use or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumedby such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(iv) In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code, the storage, use, or otherconsumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in theuse of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issuedpursuant to the laws of this state, the United States, or any foreign government.

* The provisions of this Subparagraph (3.5) shall become operative on the operative date of any act of the Legislature of the State of California which amends or repeals and re-enactsSection 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language asthat existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

SEC. 21.6.6. AMENDMENTS.

All amendments of said Revenue and Taxation Code enacted subsequent to the effective date of this ordinance, including amendments adopted and effective toand including September 18, 1959, which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and TaxationCode, shall automatically become a part of this ordinance. (Amended by Ord. No. 115,042, Eff. 1/1/60.)

SEC. 21.6.6.1. APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS. (Added by Ord. No. 145,139, Eff. 11/4/73, Operative 1/1/74.)

(a) Sections 21.6.4(b)(4.5), and 21.6.5(b)(3.5) of this article shall become operative on January 1st of the year following the year in which the State Boardof Equalization adopts an assessment ratio for state assessed property which is identical to the ratio which is required for local assessments by Section 401 of theRevenue and Taxation Code, at which time Sections 21.6.4(b)(4) and 21.6.5(b)(3) of this article shall become inoperative.

(b) In the event that Sections 21.6.4(b)(4.5) and 21.6.5(b)(3.5) of this article become operative and the State Board of Equalization subsequently adopts anassessment ratio for state assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code,Sections 21.6.4(b)(4) and 21.6.5(b)(3) of this article shall become operative on the first day of the month following the month in which such higher ratio is adopted,at which time Sections 21.6.4(b)(4.5) and 21.6.5(b)(3.5) of this article shall become inoperative until the first day of the month following the month in which theBoard again adopts an assessment ratio for state assessed property which is identical to the ratio required for local assessments by Section 401 of the Revenue andTaxation Code, at which time Sections 21.6.4(b)(4.5) and 21.6.5(b)(3.5) shall again become operative and Sections 21.6.4(b)(4) and 21.6.5(b)(3) shall becomeinoperative.

SEC. 21.6.7. ENJOINING COLLECTION FORBIDDEN.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or this City, oragainst any officer of the State or this City, to prevent or enjoin the collection under this ordinance, or Part 1.5 of Division 2 of the Revenue and Taxation Code, ofany tax or any amount of tax required to be collected.

SEC. 21.6.8. EXISTING SALES AND USE TAX ORDINANCES SUSPENDED.

At the time this ordinance goes into operation, the provisions of Section 21.199 and Article 1.5 of Chapter 2, Los Angeles Municipal Code, shall be suspendedand shall not again be of any force or effect until and unless for any reason the State Board of Equalization ceases to perform the functions incident to theadministration and operation of the sales and use tax hereby imposed; provided, however, that if for any reason it is determined that the City of Los Angeles iswithout power to adopt this ordinance, or that the State Board of Equalization is without power to perform the functions incident to the administration and operationof the taxes imposed by this ordinance, the provisions of Section 21.199 and Article 1.5 of Chapter 2, Los Angeles Municipal Code, shall not be deemed to havebeen suspended, but shall be deemed to have been in full force and effect at the rate of one percent (1%) continuously from and after April 1, 1956. Upon theceasing of the State Board of Equalization to perform the functions incident to the administration and operation of the taxes imposed by this ordinance, theprovisions of Section 21.199 and Article 1.5 of Chapter 2, Los Angeles Municipal Code, shall again be in full force and effect at the rate of one percent (1%).Nothing in this ordinance shall be construed as relieving any person of the obligation to pay the City of Los Angeles any sales or use tax accrued and owing byreason of the provisions of Section 21.199 and Article 1.5 of Chapter 2. Los Angeles Municipal Code, in force and effect prior to and including March 31, 1956.

SEC. 21.6.9. SEVERABILITY.

If any section, subsection, sentence clause, phrase or portion of this ordinance, including but not limited to any exemption, is for any reason held to be invalidor unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. TheCouncil of the City of Los Angeles hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portionthereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

SEC. 21.6.10. USE TAX INCENTIVE PROGRAM. (Title and Section amended by Ord. No. 177,216, Eff. 2/8/06.)

Any person or entity that has a State of California (State) Sales and Use Tax Permit (Permit) shall be eligible to receive a rebate of 20% of the net use tax gain,as described below, received by the City from a purchase, lease, or any other transaction that is subject to use tax and in which the City of Los Angeles (City) isproperly identified as the jurisdiction in which the property acquired under the permit is first functionally used, stored or consumed. A person or entity must file aclaim for a use tax rebate with the Director of Finance (Director) within one year from the payment of the use tax to the State. The claim must containdocumentation to substantiate the rebate. The Director may request from the claimant any other information necessary to substantiate the rebate claim.

The Director shall issue the rebate after verification that the City received the correct amount of funds from the State. The use tax rebate shall be 20% of the

difference between the amount of use tax actually received by the City because the Permit was used and the amount of use tax the City would have received if thetax had been allocated to the Los Angles Countywide pool. The rebate shall be paid directly to the claimant but shall be increased or decreased in accordance withany adjustment made by the State to a prior use tax payment by the claimant.

The City reserves the right to amend or discontinue any provision of this program without voter approval. Any amendment shall be made by ordinance andshall be applicable to any transaction made subsequent to the effective date of any ordinance.

ARTICLE 1.7TRANSIENT OCCUPANCY TAX

(Added by Ord. No. 127,757, Eff. 7/31/64, Operative 8/1/64.)

Section21.7.1 Title.21.7.2 Definitions.21.7.3 Tax Imposed.21.7.4 Exemptions.21.7.5 Operator’s Duties.21.7.6 Registration.21.7.7 Reporting and Remitting.21.7.8 Penalties and Interest.21.7.9 Additional Powers and Duties of Director of Finance, Etc.21.7.10 Assessment – Administrative Remedy.21.7.11 Records.21.7.12 Refunds.21.7.13 Actions to Collect.

SEC. 21.7.1. TITLE.

This article shall be known as the Uniform Transient Occupancy Tax Ordinance of The City of Los Angeles.

SEC. 21.7.2. DEFINITIONS.

Except where the context otherwise requires, the definitions given in this section govern the construction of this article.

(a) Person. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company,corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit.

(b) Hotel. “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients fordwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio, hotel, bachelor hotel, lodging house, roominghouse, apartment house, dormitory, public or private club, or other similar structure or portion thereof, and shall further include any trailer court, camp, parkor lot where trailer spaces, or combinations of such spaces and trailers, including mobile homes, are occupied or intended or designed for occupancy bytransients for dwelling, lodging or sleeping purposes.

(c) Occupancy. “Occupancy” means the use or possession, or the right to the use or possession of any room or rooms or space or portion thereof,in any hotel for dwelling, lodging or sleeping purposes. The use or possession or right to use or possess any room or any suite of connecting rooms as officespace, banquet or private dining rooms, or exhibit, sample or display space shall not be considered “occupancy” within the meaning of this definition unlessthe person exercising occupancy uses or possesses, or has the right to use or possess all or any portion of such room or suite of rooms for dwelling, lodgingor sleeping purposes.

(d) Transient. (Amended by Ord. No. 164,961, Eff. 7/24/89, Oper. 8/1/89.) “Transient” means:

1. Any person, other than an individual, who exercises occupancy or is entitled to occupancy by reason of concession, permit, right ofaccess, license or other agreement, for any period of time, or

2. Any individual who personally exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license orother agreement, for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such individual sooccupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between

the operator and the occupant providing for a longer period of occupancy.

Nothing in this definition or in this article shall be construed as prohibiting the operator of a hotel from refunding or making an allowance ofcredit to a person who has paid tax as required by this article where it is established that the person was not a “transient” as defined in this section orwas exempt from the tax for any other reason, or had for any reason overpaid the tax.

(e) Rent. “Rent” means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to bereceived in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deductiontherefrom whatsoever. Nothing in this definition shall be construed to mean that rent is charged directly or indirectly for the occupancy of space in a hotelwhen that space is provided to the occupant as a compliment from the operator and where no consideration is charged to or received from any other person.

(f) Operator. (Amended by Ord. No. 176,005, Eff. 7/7/04.) "Operator" means the person who is either the proprietor of the hotel or any otherperson who has the right to rent rooms within the hotel, whether in the capacity of owner, lessee, mortgagee in possession, licensee or any other capacity. The owner or proprietor who is primarily responsible for operation of the hotel shall be deemed to be the principal operator. If the principal operatorperforms or assigns its functions, in whole or in part, through a managing agent, a booking agent, a room seller or room reseller, or any other agent orcontractee, including but not limited to on-line room sellers, on-line room resellers, and on-line travel agents, of any type or character other than anemployee, those persons shall be deemed to be secondary operators.

A secondary operator shall be deemed an operator for purposes of this article and shall have the same duties and liabilities as the principal operator,including but not limited to the collection and remittance of the full amount of the tax owed under the provisions of this article to the City. A secondaryoperator may satisfy its obligations under the provisions of this article by submitting the full amount of tax due under this article, with credit for any taxesremitted to any other operator, either directly to the Director of Finance or through the principal operator. The principal operator may satisfy any potentialliability it may have for taxes owed by a secondary operator by entering into a legally binding agreement with that secondary operator to remit the portion ofthe tax owed by the secondary operator directly to the City. Upon request, the principal operator shall provide the Director of Finance with copies of anysuch agreements.

Compliance with the provisions of this article by either the principal operator or the secondary operator shall be deemed compliance by both and noprovision of this article shall be deemed to require the payment and/or remittance of any amount other than the full amount of the tax owed by the transient.

SEC. 21.7.3. TAX IMPOSED.

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of four percent (4%) of the rent charged by theoperator on or after August 1, 1964, to and including October 31, 1967; and at the rate of five percent (5%) from that date to and including February 28, 1971; andat the rate of six percent (6%) from that date to and including June 30, 1978; and at the rate of seven and one-half percent (7.5%) from that date to and includingJune 30, 1983; and at the rate of ten percent (10%) from that date to and including December 31, 1985; and at the rate of eleven percent (11%) from that date to andincluding December 31, 1987; and at the rate of twelve percent (12%) from that date to and including August 31, 1990; and at the rate of twelve and one-halfpercent (12.5%) from that date to and including July 31, 1993; and at the rate of fourteen percent (14%) thereafter.(Amended by Ord. No. 168,850, Eff. 8/1/93.) Said tax constitutes a debt owed by the transient to the City which is extinguished by the payment to the operator or to the City. The transient shall pay the tax tothe operator of the hotel at the time the rent is paid. If the rent is paid in installments, or if an amount paid is less than the full amount of rent and tax accrued at thetime of payment, a proportionate share of the tax shall be deemed to have been paid with each such payment or installment. The unpaid tax shall be due upon thetransient’s ceasing to occupy space in the hotel. If for any reason the tax is not paid to the operator of the hotel, the Director of Finance may require that such taxshall be paid directly to the City.

SEC. 21.7.4. EXEMPTIONS. (Amended by Ord. No. 159,773, Eff. 5/25/85.)

No tax shall be imposed upon:

(a) Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax herein provided;

(b) Any Federal or State of California officer or employee, including employees of federal credit unions, who provides proof that he or she is onofficial Federal or State business. (Amended by Ord. No. 172,773, Eff. 9/25/99.)

(c) Any officer or employee of a foreign government who is exempt by express provision of federal law or international treaty;

(d) Any person to whom rent is charged at the rate of $2.00 per day or less;

(e) Any person as to whom, or any occupancy as to which, rent is paid from funds administered by the Emergency Food and Shelter NationalBoard Program.

No exemption shall be granted under Subsections (a), (b) or (c) except upon a claim therefor made at the time rent is collected and under penalty of perjuryupon a form prescribed by the Director of Finance.

It shall be the duty of an operator to keep and maintain for a period of four (4) years written documentation in support of each exemption granted underSubsection (e).

SEC. 21.7.5. OPERATOR’S DUTIES.

Each operator shall collect the tax imposed by this article to the same extent and at the same time as the rent is collected from every transient. The amount oftax shall be separately stated from the amount of the rent charged and each transient shall receive a receipt for payment from the operator. No operator of a hotelshall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will notbe added to the rent, or that, if added, any part will be refunded except in the manner herein provided.

SEC. 21.7.6. REGISTRATION.

(a) Within 30 days after the operative date of this article, or within 30 days after commencing business, whichever is later, each operator of any hotelrenting occupancy to transients shall register said hotel with the Director of Finance and obtain from him a “Transient Occupancy Registration Certificate” to beat all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following:

1. The name of the operator;

2. The address of the hotel;

3. The date upon which the certificate was issued;

4. “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of theUniform Transient Occupancy Tax Ordinance by registering with the Director of Finance for the purpose of collecting from transients the TransientOccupancy Tax and remitting said tax to the Director of Finance. This certificate does not authorize any person to conduct any unlawful business or toconduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limitedto those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit.”

SEC. 21.7.7. REPORTING AND REMITTING. (Amended by Ord. No. 176,003, Eff. 7/7/04, Oper. 1/1/05.)

Each operator shall, on or before the 25th day of each calendar month, make a statement to the Director of Finance of the total rents charged and received, andthe amount of tax collected for transient occupancies during the preceding calendar month. At the time the statement is filed, the full amount of the tax collectedand tax not collected but required to be collected, shall be remitted to the Director of Finance. Except as provided in Sec. 21.7.8, an operator shall not be requiredto remit to the Director of Finance any amount of tax not collected and not required to be collected from a transient. All taxes collected and required to becollected by operators pursuant to this article shall be held in trust for the account of the City until payment thereof is made to the City. The full amount of tax due,whether collected or owed but not collected, under this Article shall be deemed a debt owed to the City by the operator and shall be discharged only upon paymentto the City.

Statements and payments are due immediately upon cessation of business for any reason, at which time the operator shall furnish the Director of Finance withthe name and address of the successor operator.

Notwithstanding the foregoing, the amount of taxes required to be remitted by an operator to the City pursuant to this Section 21.7.7 shall be automaticallyoffset by the City in an amount equal to special taxes levied, collected and satisfied, by a City Community Tax District, formed pursuant to Division 6, Chapter 10of the Los Angeles Administrative Code, against the operator's property during the preceding calendar month. The sum of the operator's monthly transientoccupancy tax remittance to the City and the operator's monthly special tax payment shall equal the amount of transient occupancy tax required to be collectedpursuant to this Article. The City may request from the applicable operator or the legislative body of the Community Taxing District documentation or otherinformation necessary to substantiate the special tax payment. (Added by Ord. No. 177,052, Eff. 11/20/05.)

The automatic tax offset of the transient occupancy taxes due pursuant to this Article shall not exceed the rate of transient occupancy tax levied by the City,and no tax offset shall be provided for the amount of special taxes paid by an operator in excess of the rate of transient occupancy tax levied by the City. (Addedby Ord. No. 177,052, Eff. 11/20/05.)

SEC. 21.7.8. PENALTIES AND INTEREST.

(a) Taxes collected by an operator which are not remitted to the Director of Finance on or before the due dates fixed in Sec. 21.7.7, or fixed by the Directorof Finance as provided therein, are delinquent.

(b) Interest and penalties for delinquency in remittance of any tax collected or required to be collected, or any deficiency determination, shall attach and be

paid by the operator at the rates and in the same manner as is provided in Section 21.05 of this Chapter for delinquency in the payment of Business Tax, except thata month shall commence on the 26th day of each calendar month and terminate on the 25th day of the succeeding calendar month. (Amended by Ord. No.176,471, Eff. 3/22/05, Oper. 1/1/05.)

(c) The Director of Finance shall have power to impose additional penalties upon an operator for fraud and negligence in reporting and remitting in thesame manner and at the same rates as are provided in Sec. 21.05 of this chapter for such penalties upon persons required to pay Business Tax.

(d) For collection purposes only, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the taxherein required to be remitted. (Amended by Ord. No. 174,085, Eff. 8/19/01.)

SEC. 21.7.9. ADDITIONAL POWERS AND DUTIES OF DIRECTOR OF FINANCE, ETC.

(a) The Director of Finance shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this article.

(b) In administering and enforcing the provisions of this article, the Director of Finance shall have the same powers and duties with respect to collectingthe tax provided herein as he has under Sec. 21.15 of this chapter with respect to collecting the Business Tax.

(c) The provisions of Sections 21.17, 21.20 and 21.21 of this chapter shall apply to the administration and collection of the tax imposed under theprovisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

SEC. 21.7.10. ASSESSMENT – ADMINISTRATIVE REMEDY.

The Director of Finance may make an assessment for taxes not remitted by an operator for any reason specified in Sec. 21.16 of this chapter for making anassessment for unpaid Business Tax. The manner of making and providing notice of such assessment; the right to a hearing and the conduct of such hearing; thepreparation and service of findings; filing exceptions; and passing upon exceptions shall be the same as provided in Sec. 21.16 of this chapter.

SEC. 21.7.11. RECORDS. (Amended by Ord. No. 173, 587, Eff. 12/7/00.)

It shall he the duty of every operator liable for the collection and payment to the City of any tax imposed by this article to keep and preserve, for a period ofthree years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the City, whichrecords the Office of Finance shall have the right to inspect at all reasonable times.

SEC. 21.7.12. REFUNDS.

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City underthis article it may be refunded as provided in this section. Except as otherwise provided in this section, refunds of overpaid taxes shall be made in the same manneras is provided in Sec. 21.07 of this chapter for refunds of overpayments in Business Taxes.

(b) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously orillegally collected or received when it is established in a manner prescribed by the Director of Finance that the person from whom the tax has been collected was nota transient; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transientor credited to rent subsequently payable by the transient to the operator.

(c) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the City by filing a claimin the manner provided in Sec. 21.07 of this chapter, but only when the tax was paid by the transient directly to the Director of Finance, or when the transienthaving paid the tax to the operator, establishes to the satisfaction of the Director of Finance that the transient has been unable to obtain a refund from the operatorwho collected the tax.

(d) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlementthereto.

SEC. 21.7.13. ACTIONS TO COLLECT.

Any tax required to be paid by any transient under the provisions of this article shall be deemed a debt owed by the transient to the City. Any such taxcollected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. Any person owing money to the City underthe provisions of this article shall be liable to an action brought in the name of the City for the recovery of such amount. Any operator who undertakes legal actionto recover unpaid rent due from a transient may include the amount of tax due from the transient in the amount sought to be recovered.

ARTICLE 1.8CIGARETTE TAX ORDINANCE

(Added by Ord. No. 127,689, Eff. 7/20/64, Operative 8/1/64.)

Section21.8.1 Definitions.21.8.2 Tax Imposed.21.8.3 Tax Paid to the Retailer.21.8.4 Retailer Remits Quarterly.21.8.5 Registration.21.8.6 Penalties and Interest.21.8.7 Additional Powers and Duties of Director of Finance, Etc.21.8.8 Assessment – Administrative Remedy.21.8.9 Records.21.8.10 Refunds.21.8.11 Actions to Collect.

SEC. 21.8.1. DEFINITIONS.

(a) “Cigarette” means any roll for smoking, made wholly or in part of tobacco, irrespective of size or shape and irrespective of whether the tobacco isflavored, adulterated or mixed with any other ingredient where such roll has a wrapper or cover made of paper or any other material, except where such wrapper iswholly or in the greater part made of tobacco and such roll weighs over three pounds per thousand.

(b) “Use or consumption” includes the exercise of any right or power over cigarettes incident to the ownership thereof other than the sale of the cigarettesor the keeping or retention thereof for the purpose of sale.

(c) “Retailer” shall mean every person as defined in Sec. 21.00 of this chapter who sells cigarettes for any purpose other than resale. Where cigarettes areoffered for sale through the means of a vending machine, the person holding title to the cigarettes in the machine shall be deemed the retailer.

SEC. 21.8.2. TAX IMPOSED.* (Amended by Ord. No. 135,144, Eff. 10/1/67.)

An excise is hereby imposed upon the use or consumption in the City of Los Angeles of cigarettes purchased from a retailer for use or consumption within theCity of Los Angeles at the rate of one mill ($0.001) per cigarette on or after August 1,1964, and to and including September 30, 1966; and at the rate of two mills($0.002) per cigarette thereafter to and including September 30, 1967. No excise shall be imposed under this section on or after the period commencing October 1,1967.

* It is the intention of the City Council in adopting this ordinance to enable the City of Los Angeles to become eligible to participate in the distribution of funds derived from State-collected cigarette taxes as provided in Sec. 30462 of the Revenue and Taxation Code, as amended by Chapter 963, Statutes of 1967.

SEC. 21.8.3. TAX PAID TO THE RETAILER.

The tax constitutes a debt owed by the purchaser to the City which is extinguished only by payment of the tax to the Director of Finance or to the retailer.When a purchase from a retailer is made within the City the tax shall be paid to the retailer at the time the purchase price is paid. The tax collected or required to becollected by the retailer constitutes a debt owed by the retailer to the City. Should any remittance of tax be made by a retailer prior to sale of cigarettes to aconsumer, such remittance shall be considered as an advance payment to be reimbursed by adding the amount of the tax to the price of the cigarettes at the time ofsale to the user or consumer.

SEC. 21.8.4. RETAILER REMITS QUARTERLY.

Each retailer selling cigarettes within the City of Los Angeles shall collect the tax imposed under Sec. 21.8.2 of this article, and on or before the last day of themonth following the close of a calendar quarter remit the total amount so collected to the Director of Finance, together with a statement on a form provided by theDirector of Finance showing the number of cigarettes sold to purchasers, the amount of tax collected, and such other information as the Director of Finance shallrequire. Where the Director of Finance determines that efficiency in the administration of the tax would be promoted, he may establish reporting periods greater thanquarterly, but not to exceed one year. The Director of Finance may establish shorter reporting periods for any retailer if he deems it necessary in order to insure

collection of the tax. Statements and payments are due immediately upon cessation of the business of selling cigarettes for any reason. All taxes collected byretailers pursuant to this article shall be held in trust for the account of the City until payment thereof is made to the Director of Finance.

SEC. 21.8.5. REGISTRATION.

(a) Within 30 days after the operative date of this article, or within 30 days after commencing business, whichever is later, each retailer shall register withthe Director of Finance and obtain from him a “Cigarette Tax Registration Certificate” to be at all times posted in a conspicuous place on the premises; provided,however, each retailer who does not operate from a fixed place of business shall keep the registration certificate upon his person at all times while engaging in thebusiness of being a retailer. No person shall engage in the business of being a retailer without obtaining a registration certificate therefor. Said certificate shall,among other things, state the following:

1. The name of the operator;

2. The address of the retailer’s place of business;

3. The date upon which the certificate was issued;

4. “This Cigarette Tax Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Cigarette TaxOrdinance by registering with the Director of Finance for the purpose of collecting the Cigarette Tax from purchasers of cigarettes and remitting said tax tothe Director of Finance. This certificate does not authorize any person to conduct any lawful business in an unlawful manner, nor to operate a cigaretteretailing business without complying with all state and local applicable laws, including but not limited to those requiring a permit from any boardcommission, department or office of this City. This certificate does not constitute a permit.”

(b) All Cigarette Tax Registration Certificates shall be countersigned by the City Controller.

(c) A retailer having more than one place of business within the City at which cigarettes are sold shall be required to obtain a separate registration for eachsuch place of business.

SEC. 21.8.6. PENALTIES AND INTEREST.

(a) Taxes collected by a retailer which are not remitted to the Director of Finance on or before the due dates fixed in Sec. 21.8.4, or fixed by the Director ofFinance as provided herein, are delinquent.

(b) Interest and penalties for delinquency in remittance of any tax collected, or any deficiency determination shall attach and be paid by the retailer at therates and in the same manner as is provided in Sec. 21.05 of this chapter for delinquency in payment of Business Tax.

(c) The Director of Finance shall have power to impose additional penalties upon a retailer for fraud and negligence in reporting and remitting in the samemanner and at the same rates as are provided in Sec. 21.05 of this Chapter for such penalties upon persons required to pay Business Tax.

(d) Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be remitted.

SEC. 21.8.7. ADDITIONAL POWERS AND DUTIES OF DIRECTOR OF FINANCE, ETC.

(a) The Director of Finance shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this article.

(b) In administering and enforcing the provisions of this article, the Director of Finance shall have the same powers and duties with respect to collectingthe tax provided herein as he has under Sec. 21.15 of this chapter with respect to collecting the Business Tax.

(c) The provisions of Sections 21.12, 21.17, 21.20, and 21.21 of this chapter shall apply to the administration and collection of the tax imposed under theprovisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

(d) The provisions of Subsections (b) and (c) of Sec. 21.18 of this chapter shall apply to the administration and collection of the tax imposed under theprovisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

SEC. 21.8.8. ASSESSMENT – ADMINISTRATIVE REMEDY.

The Director of Finance may make an assessment for taxes not remitted by a retailer for any reason specified in Sec. 21.16 of this chapter for making anassessment for unpaid Business Tax. The manner of making and providing notice of such assessment; the right to a hearing and the conduct of such hearing; thepreparation and service of findings; filing exceptions; and passing upon exceptions shall be the same as provided in Sec. 21.16 of this chapter.

SEC. 21.8.9. RECORDS.

It shall be the duty of every retailer liable for the collection and payment to the City of any tax imposed by this article to keep and preserve, for a period offour years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the City, whichrecords the Clerk shall have the right to inspect at all reasonable times.

SEC. 21.8.10. REFUNDS.

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City underthis article it may be refunded as provided in this section. Except as otherwise provided in this section, refunds of overpaid taxes shall be made in the same manneras is provided in Sec. 21.07 of this chapter for refunds of overpayments in Business Taxes.

(b) A retailer may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegallycollected or received when it is established in a manner prescribed by the Director of Finance that the person from whom the tax has been collected was not a useror consumer as that term is defined in Subsection (b) of Sec. 21.8.1; provided, however, that neither a refund nor a credit shall be allowed unless the amount of thetax so collected has either been refunded to the purchaser erroneously required to pay the tax or otherwise credited to him.

(c) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlementthereto.

SEC. 21.8.11. ACTIONS TO COLLECT.

Any person using or consuming cigarettes within the City who has not paid the tax required by the provisions of this article, and any retailer who has failed tocollect or who has collected but not remitted any tax required to be paid by the provisions of this article, shall be liable to an action brought in the name of the Cityfor the recovery of such amount.

ARTICLE 1.9REAL PROPERTY TRANSFER TAX

(Added by Ord. No. 132,932, Eff. 9/24/66, Operative 10/1/66;Amended by Ord. No. 135,540, Eff. 12/16/67, Operative 1/1/68.)

Section21.9.1 Title.21.9.2 Tax Imposed.21.9.3 Persons Liable.21.9.4 Exemption – Debt Security.21.9.5 Exemption – Governmental Agencies.21.9.6 Exemptions – Bankruptcy, Receivership, Etc.21.9.7 Exemptions – Orders of S.E.C.21.9.8 Exemption – Certain Partnership Transfers.21.9.9 Recorder Administers.21.9.10 Refunds.21.9.11 Duties of Clerk.21.9.12 Exemption-exchanges with the City.21.9.13 Exemption – Certain Non-profit Corporation Transfers.

SEC. 21.9.1. TITLE. (Amended by Ord. No. 166,976, Eff. 7/3/91, Oper. 7/1/91.)

This article shall be known as the “Real Property Transfer Tax Ordinance of the City of Los Angeles.” It is adopted pursuant to the authority contained inPart 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California. It is also enacted under the authority ofSubdivision (d) of Subsection (11) of Section 2 of the Los Angeles City Charter and other authority held as a Charter City.

SEC. 21.9.2. TAX IMPOSED.

(Amended by Ord. No. 166,976, Eff. 7/3/91, Oper. 7/1/91.)

There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall begranted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when theconsideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds$100.00, a tax at the rate of $2.25 for each $500.00 or fractional part thereof.

SEC. 21.9.3. PERSONS LIABLE.

Any tax imposed pursuant to Sec. 21.9.2 hereof shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or forwhose use or benefit the same is made, signed or issued.

SEC. 21.9.4. EXEMPTION – DEBT SECURITY.

Any tax imposed pursuant to this article shall not apply to any instrument in writing given to secure a debt.

SEC. 21.9.5. EXEMPTION – GOVERNMENTAL AGENCIES. (Amended by Ord. No. 140,085, Eff. 5/11/70.)

Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is aparty shall be exempt from the tax imposed pursuant to this article when the exempt agency is acquiring title.

SEC. 21.9.6. EXEMPTIONS – BANKRUPTCY, RECEIVERSHIP, ETC.

Any tax imposed pursuant to this article shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization oradjustment:

(a) Confirmed under the Federal Bankruptcy Act, as amended;

(b) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in Subdivision (m) of Sec. 205 of Title 11of the United States Code, as amended;

(c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in Subdivision (3) of Sec. 506 of Title 11 of theUnited States Code, as amended; or

(d) Whereby a mere change in identity, form or place of organization is effected.

Subdivisions (a) to (d), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within fiveyears from the date of such confirmation, approval or change.

SEC. 21.9.7. EXEMPTIONS – ORDERS OF S.E.C.

Any tax imposed pursuant to this article shall not apply to the making or delivery of conveyances to make effective any order of the Securities and ExchangeCommission, as defined in Subdivision (a) of Sec. 1083 of the Internal Revenue Code of 1954; but only if:

(a) The order of the Securities and Exchange Commission in obedience to which such conveyance is necessary or appropriate to effectuate theprovisions of Sec. 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935; (b) Such order specifies the property which is ordered to be conveyed;

(c) Such conveyance is made in obedience to such order.

SEC. 21.9.8. EXEMPTION – CERTAIN PARTNERSHIP TRANSFERS.

(a) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this article by reason of any transfer of an interest in a partnershipor otherwise, if:

(1) Such partnership (or another partnership) is considered a continuing partnership within the meaning of Sec. 708 of the Internal Revenue Code of1954; and

(2) Such continuing partnership continues to hold the realty concerned.

(b) If there is a termination of any partnership within the meaning of Sec. 708 of the Internal Revenue Code of 1954, for purposes of this article, suchpartnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbranceremaining thereon), all realty held by such partnership at the time of such termination.

(c) Not more than one tax shall be imposed pursuant to this article by reason of a termination described in Subdivision (b), and any transfer pursuantthereto, with respect to the realty held by such partnership at the time of such termination.

SEC. 21.9.9. RECORDER ADMINISTERS. (Amended by Ord. No. 166,976, Eff. 7/3/91, Oper. 7/1/91.)

The County Recorder shall administer this article in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code and theprovisions of any County ordinance adopted pursuant thereto. The Director of Finance of the City of Los Angeles is authorized to negotiate and enter into acontract with the County of Los Angeles or one of its officials for the administration of this article and payment to the County for its costs of administration.

SEC. 21.9.10. REFUNDS.

Claims for refund of taxes imposed pursuant to this article shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 ofDivision 1 of the Revenue and Taxation Code of the State of California.

SEC. 21.9.11. DUTIES OF CLERK. (Amended by Ord. No. 166,976, Eff. 7/3/91, Oper. 7/1/91.)

(a) The Director of Finance, in his capacity of Tax Collector of the City of Los Angeles, is hereby designated as the officer of the City responsible formaintaining relations with the County of Los Angeles for the purpose of administering the tax imposed under this article and receiving and accounting for the fundscollected thereunder.

(b) If the County of Los Angeles does not collect the tax due under this article, then the Director of Finance shall have the power and duty to enforce all ofthe provisions of this article. In such case the City tax is due prior to recordation with the County of Los Angeles of any written instrument subject to the tax andthe Director of Finance may make an assessment for taxes not paid in the manner provided in Section 21.16 of this Code, and make refunds as provided in Section22.13 of this Code.

SEC. 21.9.12. EXEMPTION-EXCHANGES WITH THE CITY. (Added by Ord. No. 170,326, Eff. 3/10/95.)

Any deed, instrument or writing by which a person acquires real property in an exchange with the City shall be exempt from the tax imposed pursuant to thisarticle where the real property received by the City is of equal or greater value than the real property received by the other person.

SEC. 21.9.13. EXEMPTION – CERTAIN NON-PROFIT CORPORATION TRANSFERS. (Added by Ord. No. 171,644, Eff. 8/2/97.)

(a) In the case of any realty held by a non-profit corporation, no levy shall be imposed pursuant to this article by reason of any transfer of the realty, if:

(1) The realty is transferred to a limited partnership, of which the non-profit corporation is the general partner; and

(2) The City required such transfer to be made in order to facilitate the use of tax credits and federal affordable housing development assistance.

(b) Any person exempt from the tax imposed by this article because of the provisions of Subsection (a) hereof shall pay to the County of Los Angeles thetax that would be owed if such exemption did not exist, and thereafter may apply to the Director of Finance for a refund, which refund shall be made in the samemanner as is provided in Section 21.07 of this chapter for refunds of overpayments of Business Taxes.

ARTICLE 1.10DWELLING UNIT CONSTRUCTION TAX

(Amended by 0rd. No. 145,220, Eff. 12/23/73.)*

* The provisions of this ordinance shall not be applicable to any subdivision filed for the purpose of converting a presently existing structure to a condominium, the TentativeMap for which has been filed prior to the thirty-first day following the effective date hereof.

Section21.10.1 Definitions.21.10.2 Constitutional Exemptions.21.10.3 Dwelling Unit Construction Tax.21.10.4 Due Date.21.10.5 Assessment – Administrative Remedy.21.10.6 Refunds.

SEC. 21.10.1. DEFINITIONS.

The following words and phrases whenever used in this article shall be construed as defined in this section:

(a) “Person” shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, jointventure, club, company, joint stock company, business trust, domestic or foreign corporation, association, syndicate, society, or any group of individualsacting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, and shall include a municipal corporation. (Amended by Ord. No. 175,083,Eff. 3/25/03.)

(b) “Dwelling Unit” shall be defined as it is presently defined in Section 12.03 of this Code except that it shall also include every mobile homesite.

(c) “Condominium” shall mean an estate in real property consisting of an undivided interest in common in a portion of a parcel of real propertytogether with a separate interest in space in an apartment building on such real property. A condominium may include in addition a separate interest in otherportions of such real property.

(d) “Apartment” shall be defined as a residential building designed or used for five or more dwelling units.

SEC. 21.10.2. CONSTITUTIONAL EXEMPTIONS.

Nothing in this article shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of theConstitution of the United States or that of the State of California.

SEC. 21.10.3. DWELLING UNIT CONSTRUCTION TAX.

(a) There is hereby imposed an excise tax upon every person who constructs or causes to be constructed any new dwelling unit in the City of Los Angelesin which said person has an equity or title. The tax imposed by this section shall be at the rate of two hundred dollars ($200.00) per dwelling unit.

1. The tax imposed by this section shall be imposed regardless of whether the new dwelling unit is created by new construction or by modificationof existing structures. The tax imposed shall apply to new mobile home park sites regardless of whether they are part of a new mobile home park or anaddition to an existing park. The tax imposed shall also apply to the conversion of an existing apartment building into a condominium or condominiums ifthe construction of the apartment building did not subject any person to the tax imposed by this article.

(b) Where, as a condition of approval of a subdivision of land or of the finalization of a zone change to a zone which permits a multiple residential use,which subdivision or zone change includes the land whereon the new dwelling unit is to be constructed, a fee has been paid, or improvements or recreationalfacilities have been installed, constructed, or guaranteed to an existing City park or upon land being dedicated as a City park, or land has been dedicated to the Cityof Los Angeles, all pursuant to the provisions of Sections 12.22 or 17.12 of the Los Angeles Municipal Code, or where a voluntary payment of such a sum, ordedication of such land, or the installation or construction of such recreational facilities or improvements has been made, or any combination thereof as would havebeen required by Sections 12.33 or 17.12 of such Code, if applicable, has occurred, a credit shall be allowed against the tax imposed by this article in the amount ofthe fee so paid, or the fair market value of the land so dedicated, or the value of the improvements or recreational facilities installed, constructed or guaranteed, or acombination of any of the above. As used herein the term “fair market value” shall mean the valuation of the particular land by the Board of Recreation and ParkCommissioners and shall be based upon the proportionate portion of the appraised value of all the land within the subdivision or zone change property which thearea dedicated bears to the area of all the land within the subdivision or zone change property, which appraisal is prepared by a qualified real estate appraiser,approved by the Real Estate Division of the Bureau of Engineering of the City, and employed by the property owner at his own expense, and which appraisal, afterreport and recommendation by the Real Estate Division of the Bureau of Engineering is accepted as reasonable by the Board of Recreation and Park Commissioners.

The value of the improvements or the facilities referred to in this section shall be established pursuant to Section 17.12F8 of the Los Angeles Municipal Code. Acredit shall also be allowed where a conversion of an existing apartment building into a condominium or condominiums has resulted in the payment of a fee, theconstruction, installation or guarantee of recreational facilities or improvements, or the dedication of land, or any of the above, to the City of Los Angeles pursuantto the provisions of Sections 12.33 or 17.12 of the Los Angeles Municipal Code. A credit shall also be allowed for the amount of tax paid under this article becauseof the modification of a structure when the structure is subsequently converted from an apartment building into a condominium or condominiums. Provided,however, that in no event shall the amount of credit exceed the amount of tax; further provided that no credit against the tax established hereby shall be allowed, andno set-off against said tax shall be permitted, in those instances where a person received an exemption or credit under the provisions of Subdivisions 1, 3, 4 or 5 ofSubsection F of Section 17.12 or Section 12.33 of the Los Angeles Municipal Code. (Amended by Ord. No. 163,797, Eff. 8/8/88.)

(c) The tax imposed by this article shall be paid to the Department of Building and Safety. The Director of Finance is directed to enforce each and all ofthe provisions of this article and may make such rules and regulations as are not inconsistent with this article as may be necessary or desirable to aid in theenforcement of these provisions. The Director of Finance may demand statements in writing from any person subject to tax calling for information as he may deempertinent for the administration and collection of the tax. It shall be the duty of any such person receiving such a demand from the Director of Finance to furnishsuch information. The Director of Finance may require any statement to be verified. (Amended by Ord. No. 175,083, Eff. 3/25/03.)

(d) The tax collected pursuant to this article shall be placed in a “Park and Recreational Sites and Facilities Fund,” to be exclusively for the acquisitionand development of park and recreational sites and facilities. Any refunds required or permitted by law, of taxes collected under this article shall be made from thatFund.

(e) The tax imposed by this article shall not apply to construction which is subsidized, in whole or part, by the federal or state government, where amajority of the units are built for senior citizens or disabled persons of low income by non-profit corporations, where the property is exempt from County propertytaxes and any income therefrom is exempt from federal and state income taxes, and the construction and development thereof complies with the provisions ofSection 17.12 of the Los Angeles Municipal Code. (Amended by Ord. No. 168,771, Eff. 7/9/93, Oper. 1/1/89.)

(f) The tax imposed by this article shall not apply to the construction of any dwelling unit which qualifies a residential facility as a “shelter for thehomeless,” as that term is defined in Section 12.03 of this Code. (Added by Ord. No. 164,785, Eff. 6/5/89.)

(g) The tax imposed by this article shall not apply to the reconstruction or replacement of a dwelling unit which was damaged or destroyed as a result ofthe earthquake of January 17, 1994 and its aftershocks, as determined by the Department of Building and Safety. (Added by Ord No. 169,952, Eff. 8/26/94.)

SEC. 21.10.4. DUE DATE. (Amended by Ord. No. 148,246, Eff. 5/24/76.)

The tax imposed by this article is due and payable prior to the issuance of a building permit by the Department of Building and Safety; provided, however, thatwhen the tax imposed on the conversion of an existing apartment building to a condominium or condominiums the tax is due and payable prior to the approval ofthe Final Map by the City Engineer. The Department of Building and Safety shall not issue a building permit until the tax imposed by this article has been paid.Any person owing money to the City under the provisions of this article shall be liable in any action brought in the name of the City for the recovery of suchamount.

Any tax paid under the provisions of this article may be refunded if the application for the building permit is not approved, or if approved, is not used forconstruction of dwelling unit, or units, or where the final map has been approved by the City Engineer for the conversion of an existing apartment building to acondominium or condominiums and such apartment building is not converted.

SEC. 21.10.5. ASSESSMENT – ADMINISTRATIVE REMEDY.

(a) The provisions of Sections 21.17, 21.20 and 21.21 of this chapter shall apply to the administration and collection of the tax imposed under theprovisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

(b) The Director of Finance may make an assessment for taxes not remitted by a person required to remit under this article. The manner of making andproviding notice of such assessment; the right to a hearing and the conduct of decision; filing exceptions; and passing upon exceptions shall be the same as providedin Section 21.16 of this chapter.

SEC. 21.10.6. REFUNDS.

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City underthis article, refund shall be made in the same manner as is provided in Section 21.07 of this chapter for refunds of overpayments in Business Taxes.

(b) No refunds shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlementthereto.

(c) The Director of Finance shall have the same power to compromise claims for Dwelling Unit Construction Tax, and the same power to accept and

record underpayments or overpayments of such tax, as is granted to him under Subsections (f) and (g) of Section 21.15 with respect to Business Taxes.

(d) With respect to any tax paid pursuant to the provisions of this article for the construction of any dwelling unit which qualifies a residential facility as a“shelter for the homeless,” as that term is defined in Section 12.03 of this Code, Subsection (f) of Section 21.10.3 of this article shall be deemed to have been ineffect and operative three years prior to its actual effective date. (Added by Ord. No. 164,785, Eff. 6/5/89.)

(e) The City shall refund any tax collected under this article which was paid after May 23, 1984 and prior to August 8, 1988, provided that such tax wouldnot have been required had Subsection (b) of Section 21.10.3 of this article, as amended by Ordinance No. 163,797, been in effect at the time of payment thereof.Claims for such refund shall be made pursuant to Subsection (a) of this section. (Added by Ord. No. 166,422, Eff. 12/31/90.)

(f) The Director of Finance shall enforce the provisions of Subsection (a) above as if Subsection (g) of Section 21.10.3 of the Los Angeles Municipal Codewas in effect on January 17, 1994. (Added by Ord No. 169,952, Eff. 8/26/94.)

ARTICLE 1.11PAYROLL EXPENSE TAX

(Repealed by Ord. No. 174,272, Eff. 11/26/01.)

ARTICLE 1.12TAX PENALTY AMNESTY

(Article Amended by Ord. No. 180,598, Eff. 4/19/09.)

Section21.12.1 Development and Administration of Program.21.12.2 Duration and Application of Program.21.12.3 Elements of Program.21.12.4 Previous Assessments, Payments, and Litigation.21.12.5 Requisites for Compliance with Program.21.12.6 Subsequent Deficiencies.21.12.7 Implementation of Article.

SEC. 21.12.1. DEVELOPMENT AND ADMINISTRATION OF PROGRAM.

The Director of Finance shall develop and administer a tax penalty amnesty program as authorized and provided in this article.

SEC. 21.12.2. DURATION AND APPLICATION OF PROGRAM.

The tax penalty amnesty program shall be conducted during the period of May 1, 2009, through July 31, 2009. The program shall apply to penalties fordelinquent tax liabilities for tax periods ending on or before July 31, 2009, with respect to Business Taxes (Article 1), Telephone, Electricity, and Gas Users Taxes(Article 1.1), Commercial Tenant's Occupancy Taxes (Article 1.3), Transient Occupancy Taxes (Article 1.7), and Parking Occupancy Taxes (Article 1.15).

SEC. 21.12.3. ELEMENTS OF PROGRAM.

For any taxpayer who meets the requirements of Section 21.12.5 of this article:

(a) The tax penalties imposed under Article 1 (Business Taxes), Article 1.1 (Telephone, Electricity, and Gas Users Taxes), Article 1.3 (CommercialTenant's Occupancy Tax), Article 1.7 (Transient Occupancy Tax), and Article 1.15 (Parking Occupancy Tax) of this chapter shall not apply to any taxes forthe tax periods for which tax penalty amnesty is requested, which are owed as a result of the nonreporting or underreporting of tax liabilities or thenonpayment of any taxes.

(b) No criminal action shall be brought against the taxpayer for any tax period for which the taxpayer has complied with the provisions of Section21.12.5 of this article based upon the nonreporting or underreporting of tax liabilities or the nonpayment of any taxes.

SEC. 21.12.4. PREVIOUS ASSESSMENTS, PAYMENTS, AND LITIGATION.

The tax penalty shall apply and no refund or credit shall be granted of any penalty if, prior to the time the taxpayer makes a request for tax penalty amnestypursuant to Section 21.12.5 of this article, the penalty has been paid by the taxpayer.

SEC. 21.12.5. REQUISITES FOR COMPLIANCE WITH PROGRAM. (Amended by Ord. No. 180,672, Eff. 6/7/09.)

(a) The provisions of this Article shall apply to any taxpayer who, on or after May 1, 2009, and on or before July 31, 2009, files an application for taxpenalty amnesty and complies with the following conditions:

1. Files completed tax statements or returns for all periods and taxes for which the taxpayer has not previously filed a tax statement or return andfiles completed amended tax statements or returns for all periods for which the taxpayer underreported the taxes due;

2. Pays in full all taxes and interest due; and

3. Pays all costs and fees incurred and due with respect to the collection of any delinquent taxes. (b) For Business Taxes imposed under Article I of this chapter, the Director of Finance may enter into an installment payment agreement, as provided forin Section 21.18 of Article I of this chapter, in lieu of the complete payment required under Subdivision 2. of Subsection (a) of this section. Failure of the taxpayerto fully comply with the terms of the installment payment agreement shall render the waiver of any penalty applicable thereto null and void, unless the Director ofFinance determines that the failure was due to reasonable cause, and the total amount of tax, interest and all penalties shall be immediately due and payable.

SEC. 21.12.6. SUBSEQUENT DEFICIENCIES.

If, subsequent to July 31, 2009, the Director of Finance issues a billing, deficiency determination or assessment based upon a statement or return filed pursuantto Section 21.12.5 of this article, penalties shall be imposed only with respect to the difference between the amount paid and the correct amount of tax. This sectionshall not invalidate any waiver granted under Section 21.12.3 of this article.

SEC. 21.12.7. IMPLEMENTATION OF ARTICLE.

The Director of Finance shall adequately publicize the tax penalty amnesty program, issue forms and instructions and take other actions needed to implementthis article. No later than November 30, 2009, the Director of Finance shall report to Council the number of taxpayers for whom penalties were waived and the totalamount of penalties waived pursuant to this article.

ARTICLE 1.13RESIDENTIAL DEVELOPMENT TAX

(Art. 1.13, Added by Ord. No. 162,421, Eff. 6/29/87. Oper. 7/1/87.)

Section21.13.1 Definitions.21.13.2 Constitutional Exemptions.21.13.3 Residential Development Tax.21.13.4 Due Date.21.13.5 Assessment – Administrative Remedy.21.13.6 Refunds.

SEC. 21.13.1. DEFINITIONS.

The following words and phrases whenever used in this article shall be construed as defined in this section.

(a) “Person” shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, jointventure, club, company, joint stock company, business trust, domestic or foreign corporation, association, syndicate, society, or any group of individualsacting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, and shall include a municipal corporation. (Amended by Ord. No. 175,083,

Eff. 3/25/03.)

(b) “Dwelling Unit” shall be defined as it is presently defined in Section 12.03 of this Code except that it shall also include every mobile homesite.

(c) “Condominium” shall mean an estate in real property consisting of an undivided interest in common in a portion of a parcel of real propertytogether with a separate interest in space in an apartment building on such real property. A condominium may include in addition a separate interest in otherportions of such real property.

(d) “Apartment” shall be defined as a residential building designed or used for five or more dwelling units.

SEC. 21.13.2. CONSTITUTIONAL EXEMPTIONS.

Nothing in this article shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of theConstitution of the United States or that of the State of California.

SEC. 21.13.3. RESIDENTIAL DEVELOPMENT TAX.

(a) There is hereby imposed an excise tax upon every person who constructs, or causes to be constructed, any new dwelling unit in the City of Los Angelesin which said person has an equity or title. The tax imposed by this section shall be at the rate of three hundred dollars ($300.00) per dwelling unit.

1. The tax imposed by this section shall be imposed regardless of whether the new dwelling unit is created by new construction or by modificationof existing structures. The tax imposed shall apply to new mobile home park sites regardless of whether they are part of a new mobile home park or anaddition to an existing park. The tax imposed shall also apply to the conversion of an existing apartment building into a condominium or condominiums ifthe construction of the apartment building did not subject any person to the tax imposed by this article.

(b) A credit against the tax shall be allowed for the amount of tax paid under this article because of the modification of a structure when the structure issubsequently converted from an apartment building into a condominium or condominiums. Provided, however, that in no event shall the amount of credit exceedthe amount of tax.

(c) The tax imposed by this article shall be paid to the Department of Building and Safety. The Director of Finance is directed to enforce each and all ofthe provisions of this article and may make such rules and regulations as are not inconsistent with this article as may be necessary or desirable to aid in theenforcement of these provisions. The Director of Finance may demand statements in writing from any person subject to tax calling for information as he may deempertinent for the administration and collection of the tax. It shall be the duty of any such person receiving such a demand from the Director of Finance to furnishsuch information. The Director of Finance may require any statement to be verified. (Amended by Ord. No. 175,083, Eff. 3/25/03.)

(d) The tax imposed by this article shall not apply to construction which is subsidized, in whole or part, by the federal or state government, where amajority of the units are built for senior citizens or disabled persons of low income by non-profit corporations, where the property is exempt from County propertytaxes and any income therefrom is exempt from federal and state income taxes, and the construction and development thereof complies with the provisions ofSection 17.12 of the Los Angeles Municipal Code. (Amended by Ord. No. 168,771, Eff. 7/9/93, Oper. 1/1/89.)

(e) The tax imposed by this article shall not apply to the construction of any dwelling unit which qualifies a residential facility as a “shelter for thehomeless,” as that term is defined in Section 12.03 of this Code. (Added by Ord. No. 164,785, Eff. 6/5/89.)

(f) The tax imposed by this article shall not apply to the reconstruction or replacement of a dwelling unit which was damaged or destroyed as a result of theearthquake of January 17, 1994 and its aftershocks, as determined by the Department of Building and Safety. (Added by Ord No. 169,952, Eff. 8/26/94.)

SEC. 21.13.4. DUE DATE.

The tax imposed by this article is due and payable prior to the issuance of a building permit by the Department of Building and Safety; provided, however, thatwhen the tax imposed on the conversion of an existing apartment building to a condominium or condominiums the tax is due and payable prior to the approval ofthe Final Map by the City Engineer. The Department of Building Safety shall not issue a building permit until the tax imposed by this article has been paid. Anyperson owing money to the City under the provisions of this article shall be liable in any action brought in the name of the City for the recovery of such amount.

Any tax paid under the provisions of this article may be refunded if the application for the building permit is not approved, or, if approved, is not used forconstruction of a dwelling unit, or units, or where the final map has been approved by the City Engineer for the conversion of an existing apartment building to acondominium or condominiums and such apartment building is not converted.

SEC. 21.13.5. ASSESSMENT – ADMINISTRATIVE REMEDY.

(a) The provisions of Sections 21.17, 21.20 and 21.21 of this chapter shall apply to the administrative and collection of the tax imposed under theprovisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

(b) The Director of Finance may make an assessment for taxes not remitted by a person required to remit under this article. The manner of making andproviding notice of such assessment; the right to a hearing and the conduct of such hearing; the preparation and service of the decision; filing exceptions; andpassing upon exceptions shall be the same as provided in Section 21.16 of this Chapter.

SEC. 21.13.6. REFUNDS.

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City underthis article, refund shall be made in the same manner as is provided in Section 21.07 of this Chapter for refunds of overpayments in Business Taxes.

(b) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlementthereto.

(c) The Director of Finance shall have the same power to compromise claims for Residential Development Tax, and the same power to accept and recordunderpayments or overpayments of such tax, as is granted to him under Subsections (f) and (g) of Section 21.15 with respect to Business Taxes.

(d) With respect to any tax paid pursuant to the provisions of this article for the Construction of any dwelling unit which qualifies a residential facility as a“shelter for the homeless,” as that term is defined in Section 12.03 of this Code, Subsection (e) of Section 21.13.3 of this article shall be deemed to have been ineffect and operative three years prior to its actual effective date. (Added by Ord. No. 164,785, Eff. 6/5/89.)

(e) The Director of Finance shall enforce the provisions of Subsection (a) above as if Subsection (f) of Section 21.13.3 of the Los Angeles Municipal Codewas in effect on January 17, 1994. (Added by Ord No. 169,952, Eff. 8/26/94.)

ARTICLE 1.14SPECIAL FIRE SAFETY AND PARAMEDIC COMMUNICATIONS EQUIPMENT TAX

(Art. 1.14, Added by Ord. No. 163,956, Eff. 11/30/88 adopted by the voters as a Referendum Ordinance on November 8, 1988, Eff. 11/30/88.)

Section21.14.1 Definitions.21.14.2 Exemptions.21.14.3 Special Tax.21.14.4 Purpose.21.14.5 Special Fund.21.14.6 Tax Rate.21.14.7 Adjustments and Refunds.21.14.8 Amendments.21.14.9 Savings Clause.

SEC. 21.14.1. DEFINITIONS.

The following words and phrases whenever used in this article shall be construed as defined in this section:

(a) “parcel” shall mean a unit of real property as shown on the last equalized assessment roll of Los Angeles County,

(b) “improvement to property” shall mean a building or other improvement erected on or affixed to a parcel, and

(c) “building” shall mean any structure having a roof supported by columns or walls, for the housing, shelter or enclosure of persons, animals,chattels or property of any kind.

SEC. 21.14.2. EXEMPTIONS.

(a) Nothing in this article shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation ofeither the Constitution of the United States or the Constitution of the State of California.

(b) The tax imposed by this article shall not be levied upon the federal government, the state government, any state agency, or any local governmentalagency.

(c) The tax imposed by this article shall not be levied upon a parcel of property or improvement which is owned by an organization described in Sections401(a), 501(c), or 501(d) of Title 26 of the United States Code. All sections of the United States Code shall mean those sections as they exist on the effective date ofthis article and as they may be amended thereafter.

SEC. 21.14.3. SPECIAL TAX.

(a) There is hereby imposed a special tax on each parcel, improvement to property, and the use of property within the City of Los Angeles for purposes setforth in this article. The special tax shall be for 10 fiscal years, commencing with the fiscal year 1989-90 and ending with the fiscal year 1998-99.

(b) This tax is enacted under the authority of Section 101 of the Los Angeles City Charter, other authority held as a charter city, and, independentlythereof, under the authority of California Government Code Sections 50075-50077.5. (Amended by Ord. No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)

SEC. 21.14.4. PURPOSE.

(a) The purpose of this special tax is to provide funds to the City to pay:

1. lease payments to be made by the City pursuant to any lease of fire safety and paramedic communications and dispatch equipment and systemsto be utilized by the Fire Department;

2. expenses incurred incident to the authorization, issuance or sale of the bonds referred to below;

3. costs or expenses incurred by any lessor of any such communications and dispatch equipment or systems in connection with the execution,performance or enforcement of any such lease or any assignment thereof, the ownership of any such communication and dispatch equipment or systems orthe lease thereof to the City, including but not limited to fees, costs, expenses or administrative costs of any such lessor in connection with any suchcommunications equipment or systems;

4. costs or expenses (including attorneys’ fees and disbursements) of any trustee under any trust agreement or indenture under which any of suchbonds are issued, including but not limited to compensation and indemnification of any such trustee;

5. any insurance premiums payable on account of any such equipment or systems (including amounts payable to any self–insurance fund) or its useor operation;

6. any amounts payable incident to obtaining or maintaining, or otherwise pursuant to, any credit enhancement or liquidity agreements orarrangements with respect to any of such bonds or lease;

7. any amounts required to be paid to the United States of America as a rebate in order for interest payments on any of such bonds to be exemptfrom federal income taxes;

8. any amount required to be paid into any reserve fund created under any such trust agreement or indenture; and

9. the costs of collecting and administering the tax.

The lease payments will serve as collateral for and the source of repayment of not to exceed $67,000,000 in lease revenue bonds (including refunding bonds) tobe issued as a single issue, or in two or more issues or series of an issue, by a nonprofit corporation, joint powers authority or other financing medium.

The net proceeds of the lease revenue bonds are to be used to acquire such communications and dispatch equipment and systems. The equipment and systemsare required by the Fire Department to provide more rapid, efficient delivery of fire safety and paramedic services in the City of Los Angeles. In the event the Cityshall lease any of such communications and dispatch equipment or systems under a lease that is payable from the General Fund as well as from the special tax, andsuch lease provides for abatement of rent or other payments either in whole or in part in the event of damage to or destruction of any such equipment or systems,then, in the event there is any such abatement, payments from the special tax permitted by this Section 21.14.4 shall be allocated first to, or in respect of, anycomponent of the equipment or systems for which payment from the General Fund has abated due to such damage or destruction, and thereafter to the balance ofthe equipment and systems. In the event the City Council does not authorize the leasing of such equipment and systems, the tax shall not take effect.

(b) The taxes collected pursuant to this article shall not be used to replace City General Fund money that would normally be appropriated to finance firesafety or paramedic service.

(c) The Los Angeles City Council may provide for the collection of the special tax in the same manner and subject to the same penalties as, or with, othercharges and taxes fixed and collected by the City, or by the County of Los Angeles on behalf of the City of Los Angeles. If the special tax is collected by the

County on behalf of the City, the County may deduct its reasonable costs incurred for such service.

(d) Director of Finance costs of enforcement and administration of the tax, including refunds, shall be paid from the special tax revenues.

SEC. 21.14.5. SPECIAL FUND.

(a) There is hereby established a special fund in the City Treasury entitled Special Fire Safety and Paramedic Communications Equipment Tax Fund.Money collected pursuant to this article shall be deposited into said special fund and shall be used exclusively as provided in this article, for the purpose for whichthe tax is imposed, and for no other purpose. Money deposited into this special fund shall not be subject to reversion to the Reserve Fund of the City of LosAngeles, established under Charter Section 302. Nothing in this section shall prevent disbursements from this special fund to reimburse the General Fund whenmoney has been advanced from the General Fund to pay for the uses provided for in this article. (Amended by Ord. No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)

(b) Except as hereinafter provided in Subsection (c) of this section, any money raised by the special tax that remains unencumbered at the end of any fiscalyear may only be used in a succeeding fiscal year for the purposes stated in this article. The availability of a surplus for any succeeding year shall be considered bythe City Council when fixing the rates of tax for that year.

(c) Any amount remaining in the Special Fire Safety and Paramedic Communications Equipment Tax Fund after all lease revenue bonds issued to financethe acquisition of fire safety and paramedic communications and dispatch equipment and systems have been repaid in full, may be used solely and exclusively formaintaining, replacing or improving such equipment and systems.

SEC. 21.14.6. TAX RATE.

(a) The tax imposed on each parcel, improvement to property, and use of property shall be computed for each parcel by applying a rate to the gross squarefootage area of any improvements on the parcel. If there are no improvements on a parcel, the tax shall be computed by applying the rate established forimprovements to 500 square feet regardless of the size of the parcel. For 10 fiscal years, commencing with fiscal year 1989-90 and continuing through fiscal year1998-99, the City Council, by ordinance, shall impose a rate applicable to unimproved parcels and, for each parcel upon which there is an improvement to property,shall impose a rate applicable to the gross square footage area of such improvements, regardless of the use of the parcel or improvements. The rate shall beestablished to provide revenue for each fiscal year sufficient to make the payments estimated to be required during that fiscal year for the purposes enumerated inSection 21.14.4(a), and in setting the rate, the City Council shall take into account possible delinquencies in payments, so that the amount expected to be collectednet of delinquencies will be sufficient to make the estimated required payments.

(b) Commencing with the 1989-90 fiscal year, and for each of the nine succeeding fiscal years, the maximum tax rate for the area of improvements on aparcel shall be $1.00 per one hundred square feet of improvement area or fraction thereof.

(c) The maximum tax rate established in Subsection (b) of this section shall be adjusted annually, commencing with the 1989-90 fiscal year, to provide forchanges in the cost of living and in population, as those terms are defined in Article XIII B of the California Constitution, calculated under State Department ofFinance procedures applicable to government spending limitations.

(d) For any fiscal year the City may, by ordinance, adjust the tax rate below the maximum amount. Such a reduction shall not prevent a subsequent levy oftaxes for any succeeding fiscal year up to the limits set forth in this section; however, except as provided in Subsection (c) of this section, in no case shall theamount of the tax rate to be levied exceed the maximum amount established by this article without the approval of the voters by two-thirds of the votes cast byvoters voting upon such change in the tax rate maximum.

SEC. 21.14.7. ADJUSTMENTS AND REFUNDS.

(a) Requests for adjustments involving imposition of this tax may be filed with the Director of Finance. Upon sufficient evidence of error in thecomputation of the tax the Director of Finance or a designee of the Director of Finance shall cause the tax to be recalculated, and shall so advise the Los AngelesCounty Tax Collector or other appropriate official.

(b) Whenever it is alleged that the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received bythe City under this article, the refund procedure shall be as follows:

1. No claim for refund of tax payment shall be allowed in whole or in part unless filed with the Director of Finance within a period of three yearsfrom the date of the claimed overpayment. All such claims for refund of the amount of the overpayment must be filed on forms furnished, and in the mannerprescribed, by the Director of Finance. Refunds may be made from the Special Fire Safety and Paramedic Communications Equipment Tax Fund.

2. In the event the Director of Finance or the City Council denies the claim, the Director of Finance shall notify the claimant pursuant to CaliforniaGovernment Code Section 913.

(c) The Director of Finance shall have the same power to compromise claims involving the special tax, and the same power to accept and recordunderpayments or overpayments of such tax, as granted to the Director of Finance under Subsections (f) and (g) of Section 21.15 of the Los Angeles Municipal

Code with respect to Business Taxes. The Director of Finance shall have the same authority to make refunds of this tax as is provided in Sections 22.12 and 22.13of the Los Angeles Municipal Code.

(d) If the County of Los Angeles does not collect any tax due under this article, then the Director of Finance shall have the power and duty to enforce all ofthe provisions of this article. In such cases the Director of Finance, for taxes not paid, may make an assessment against the owner of a parcel and improvements, oragainst the owner of improvements on another’s land, in the manner provided in Section 21.16 of the Los Angeles Municipal Code. Any unpaid tax due under thisarticle shall be subject to Sections 21.19, 21.20, and 21.21 of the Los Angeles Municipal Code.

(e) The special tax shall be due in two equal installments in accordance with the collection procedures of the Los Angeles County Tax Collector with thefirst installment due November 1, and the second installment due the next succeeding February 1, in each fiscal year. The owner of the land, land andimprovements, or improvements, at the time set forth in California Revenue and Taxation Code Sections 405 and 2192 for each fiscal year, shall have a personalobligation to the City of Los Angeles until the tax is paid for each fiscal year.

(f) The Director of Finance may prepare a questionnaire to be served on the owner of a parcel or improvements subject to the tax imposed by this article.The questionnaire may request information which would be useful to the Director of Finance in the enforcement or administration of this article. The failure by anowner to provide the information requested within 30 days of receipt of the request, or the act of an owner in knowingly providing false information, shall be amisdemeanor.

(g) In determining the gross square footage area of improvements the Director of Finance may use County Assessor’s records, City records, questionnairesand any other records the Director of Finance deems reliable.

SEC. 21.14.8. AMENDMENTS.

Procedural provisions of this article may be amended by ordinance passed by the City Council.

SEC. 21.14.9. SAVINGS CLAUSE.

If any section, subsection, part, clause, sentence or phrase of this article or the application thereof is for any reason held to be invalid or unconstitutional by thedecision of any court of competent jurisdiction, the validity of the remaining portions of the article, the application thereof, and the tax imposed shall not be affectedthereby but shall remain in full force and effect, it being the intention of the City Council and the voters to adopt each and every section, subsection, part, clause,sentence or phrase regardless of whether any other section, subsection, part, clause, sentence or phrase or the application thereof is held to be invalid orunconstitutional.

ARTICLE 1.15PARKING OCCUPANCY TAX

Section21.15.1 Definitions.21.15.2 Tax Imposed.21.15.3 Occupant to Pay Tax to the Operator.21.15.4 Operator’s Duties.21.15.5 Exemptions.21.15.6 Registration of Operators.21.15.7 Reporting and Remitting.21.15.8 Penalties and Interest.21.15.9 Additional Powers and Duties of Director of Finance.21.15.10 Assessment – Administrative Remedy.21.15.11 Records.21.15.12 Refunds.21.15.13 Actions to Collect.21.15.14 Savings Clause.

SEC. 21.15.1. DEFINITIONS. (Added by Ord. No. 165,949, Eff. 7/5/90.)

Except where the context otherwise requires, the definitions given in this section shall govern the construction of this article.

(a) Motor Vehicle. “Motor vehicle” means every self-propelled vehicle operated or suitable for operation on the highway.

(b) Occupancy. “Occupancy” means the use or possession or the right to the use or possession of any space for the parking of a motor vehicle orany other purpose in a parking facility.

(c) Occupant. “Occupant” means a person who, for a consideration, uses, possesses or has the right to use or possess any space for the parking ofa motor vehicle in a parking facility under any lease, concession, permit, right of access, license to use or other agreement or otherwise, whether voluntarilyor involuntarily. Occupant shall be deemed to include any person required to pay any valet or service labor charge in connection with the parking of motorvehicles on public or private property and any person required to pay a charge for the occupancy of parking space by another person by means of validationor otherwise.

(d) Operator. “Operator” means the person who conducts a parking facility, whether in the capacity of owner, lessee, mortgagee in possession,licensee, valet or other service supplier or any other capacity. When the operator performs his functions through a managing agent of any type or characterother than an employee, the managing agent shall also be deemed an operator for purposes of this article and shall have the same duties and liabilities as hisprincipal. When the managing agent collects parking fees and tax on behalf of his principal and deposits the same into the principal’s account in a financialinstitution, such principal shall be responsible for reporting and remitting the tax to the City. It shall be the duty of the managing agent to provide theDirector of Finance with the name and address of each principal who will be responsible for reporting and remitting the tax to the City. Compliance with theprovisions of this article by either the principal or the managing agent shall be considered to be compliance by both. A person who qualifies as an operatorshall not, by reason of being exempt from the tax imposed in this article, be exempt from the duties and liabilities of an operator imposed under this article.

(e) Parking Meter. “Parking meter” means any device which, when the recording device thereof is set in motion, or immediately following thedeposit of any coin, shall register the period of time that any motor vehicle may be parked adjacent thereto.

(f) Parking Facility. “Parking facility” means any outdoor space or uncovered plot, place, street, lot, parcel, yard or enclosure, or any portionthereof, or any building or structure, or any portion thereof, where or in which a motor vehicle may be parked, stored, housed or kept, for which any chargeis made.

(g) Person. “Person” means any natural person, partnership, joint venture, joint stock company, corporation, estate, trust, business trust, receiver,administrator, executor, assignee, trustee in bankruptcy, firm, company, association, club, syndicate, society, municipal corporation, the State of California,political subdivision of the State of California, the United States, instrumentality of the United States, or any group or combination acting as a unit, whethermutual, cooperative, fraternal, nonprofit or otherwise.

(h) Parking Fee. “Parking fee” means the consideration charged, whether or not received, for the occupancy or use of space in a parking facilityvalued in money, whether received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature,without any deduction therefrom. The parking fee shall be deemed to include the total charges required to be paid by an occupant, including, but not limitedto, any valet or service labor charge in connection with the use or occupancy of parking space on public or private property. Nothing shall be construed tomean that a parking fee is charged to the occupant of space in a parking facility for the sale of petroleum products, automobile parts or other tangiblepersonal property, the rendering of services, including car wash services, totally unconnected with the use or occupancy of parking space, or where parkingspace is provided to the occupant as a compliment from the operator and where no consideration is charged to or received from any other person.

SEC. 21.15.2. TAX IMPOSED.

For the privilege of occupying space in any parking facility in the City of Los Angeles, each occupant is subject to and shall pay a tax in the amount of tenpercent (10%) of the parking fee. The tax imposed by this article shall be paid upon any occupancy on and after August 1, 1990, although such occupancy ispursuant to a contract, lease or other arrangement made prior to such date. Where the parking fee is paid, or charged or billed, or falls due on either a weekly,monthly or other term basis, the parking fee so paid, charged, billed or fallen due shall be subject to the tax herein imposed to the extent that it covers any portion ofthe period occurring on or after August 1, 1990 and such payment, charge, bill or parking fee due shall be apportioned on the basis of the proration of the number ofdays covered thereby. In computing the tax herein imposed, the fractional part of one cent shall be disregarded unless it amounts to one-half of one cent or more, inwhich case the amount shall be increased to the next highest cent. The tax herein imposed constitutes a debt owed by the occupant to the City, which isextinguished by payment to the operator or the City.

SEC. 21.15.3. OCCUPANT TO PAY TAX TO THE OPERATOR.

Unless prohibited by the laws of the United States or the State of California or exempted by the provisions of this article, every occupant occupying parkingspace in a parking facility shall be required to pay the tax imposed herein to the operator along with the parking fee for occupancy. If the parking fee is paid ininstallments, or if an amount paid is less than the full amount of parking fee and tax accrued at the time of payment, a proportionate share of the tax shall bedeemed to have been paid with each such payment or installment. Any unpaid tax shall be due upon the occupant’s ceasing to occupy parking space in the parkingfacility. If for any reason the tax is not paid to the operator, the Director of Finance shall require that such tax shall be paid directly to the City. Payment of the taxto the operator does not relieve the occupant of liability for the tax to the City until the tax has been remitted to the City by the operator, unless the occupant has areceipt for the parking fee and tax issued by the operator.

SEC. 21.15.4. OPERATOR’S DUTIES.

Each operator shall collect the tax imposed by this article to the same extent and at the same time as the parking fee is collected from every occupant. In allcases in which the tax is not collected by the operator from the occupant, the operator shall be liable to the City for the amount of tax due on the amount of thetaxable parking fee collected from the occupant under the provisions of this article the same as though the tax were paid by the occupant. The amount of tax shallbe separately stated from the amount of the parking fee charged, and each occupant, upon demand, shall be given a receipt for payment. No operator shall advertiseor hold out or state to the public or any occupant, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator or that it will notbe added to the parking fee for the parking space, or that, if added, it or any part thereof will be refunded.

SEC. 21.15.5. EXEMPTIONS.

No tax shall be imposed upon:

(a) Any person as to whom or any occupancy as to which it is beyond the power of the City to impose the tax herein provided;

(b) The parking fee for any occupancy of parking space in a parking facility which is paid by the deposit of a coin or coins in a parking meterowned or operated by the City and located adjacent to said parking space.

(c) The parking fee for any occupancy of parking space in a parking facility which is part of residential or hotel premises if the occupant of saidparking space is a resident of, or a registered guest for dwelling, lodging or sleeping purposes at, said premises for a period of at least a full calendar monthor 30 or more consecutive calendar days, counting portions of calendar days as full days, or the parking fee for any occupancy of parking space by aregistered hotel guest for dwelling, lodging or sleeping purposes for a period of at least a full calendar month or 30 or more consecutive calendar days,counting portions of calendar days as full days, in a parking facility not located on the hotel premises if the parking fee is added to the room bill of theregistered guest and paid by said registered guest to the hotel. For purposes of this subsection, “hotel” shall have the same meaning as is provided inSubsection (b) of Section 21.7.2 of this chapter. Any occupant described in this subsection shall not be deemed exempt until the period of at least a fullcalendar month or 30 consecutive calendar days has expired unless there is an agreement in writing between the operator and the occupant providing for aperiod of occupancy of at least a full calendar month or 30 or more consecutive calendar days. (Added by Ord. No. 166,309, Eff. 11/16/90, Oper. 8/1/90.)

(d) The parking fee for occupancy by a local resident of parking space in any parking facility, which space, as a condition of a City permit, isdedicated for occupancy exclusively by local residents. (Added by Ord. No. 168,618, Eff. 4/4/93, Oper. 6/1/93.)

(e) The parking fee for the occupancy of parking space in a parking facility by any new unregistered motor vehicle subsequent to its importationinto the United States or prior to its exportation from the United States. No person shall be entitled to a refund for any tax year prior to 2002 due to theapplication of the exemption set forth herein. (Added by Ord. No. 174,373, Eff. 1/26/02.)

(f) The parking fee for occupancy by a mobile food facility stored at or within a commissary as required by California Health and Safety CodeSection 114295. (Added by Ord. No. 182,291, Eff. 12/12/12.)

SEC. 21.15.6. REGISTRATION OF OPERATORS. (Amended by Ord. No. 182,283, Eff. 11/19/12.)

(a) Prior to commencing business, or within 15 days after the effective date of this Section, whichever is later, each operator of any parking facilityproviding parking space to occupants and not exempted by Section 21.15.5 shall register each parking facility with the Director of Finance and obtain a "ParkingOccupancy Registration Certificate" (PORC) which shall be at all times posted in a conspicuous place on the premises. Notwithstanding the foregoing, thecertificate for any unattended parking facility may be maintained at any other business location of the operator. Said certificate shall among other things state thefollowing:

1. The name of the operator;

2. The address of the parking facility;

3. The date upon which the certificate was issued; and

4. "This Parking Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of Article 1.15of Chapter II of the Los Angeles Municipal Code by registering with the Director of Finance for the purpose of collecting from parking space occupants theParking Occupancy Tax and remitting said tax to the Director of Finance. This certificate does not authorize any person to conduct any unlawful business orto conduct any lawful business in an unlawful manner, nor to operate a parking facility without strictly complying with all local applicable laws, includingbut not limited to those requiring a permit from any board, commission, department or office of this City."

The PORC will expire on a date certain set by the Director of Finance. The operator must apply for renewal of the PORC before it expires if the operatorintends to continue to engage in business in the City. Except as provided below, the Director of Finance may renew a PORC annually without issuing a newPORC.

The PORC may not be assigned or transferred. The operator shall immediately surrender to the Director of Finance the PORC for that location upon theoperator's cessation of business at that location or upon the sale or transfer of the business.

The PORC shall not be issued until the operator has obtained and filed a bond in accordance with subsection (d) below.

(b) The holder of the PORC shall remain presumptively liable for the collection of the Parking Occupancy Tax at the location named in the certificate, andfor the reporting and remittance of such taxes to the Director of Finance as set forth in Section 21.15.4 unless and until the holder of the PORC both: (i) notifies theDirector of Finance in writing that the holder has ceased to conduct a parking business at such location and pays all Parking Occupancy Taxes then due to the City;and (ii) surrenders the PORC for that location to the Director of Finance.

(c) The Director of Finance may refuse to issue, or may revoke, the PORC at any time if the Director of Finance determines that the operator, or anysignatory to the application, or any person holding a legal or beneficial interest, whether direct or indirect, actual or constructive, in said operator ("BeneficialOwner") is not in compliance with any provision of the Los Angeles Municipal Code, including without limitation any provision relating to the payment ofBusiness Taxes or Parking Occupancy Taxes (including the bond requirement as set forth below) for any other location or business.

Solely for purposes of determining under this Section whether any such operator, signatory, or Beneficial Owner is not in compliance with any provision of theLos Angeles Municipal Code, the Director of Finance may disregard any corporation or association or other entity owned or controlled, directly or indirectly, byany such operator, signatory, or Beneficial Owner and consider such corporation, association, or other entity's operations and liabilities as conducted by or as ownedby any one or more of such corporation, association, or other entity's officers, directors, partners, members, or owners. For purposes of this Section, (i) the term"owned" means ownership of 50 percent (50%) or more of the outstanding ownership interests in such corporation, association, or other entity; and (ii) the term"controlled" includes any kind of control, whether direct or indirect, actual or constructive, whether legally enforceable and however exercisable or exercised oversuch corporation, association, or other entity. A presumption of control arises if the operator, signatory, or Beneficial Owner is (or was at any relevant time) anofficer, director, partner, or member of such corporation, association, or entity.

(d) Bond Requirement.

1. Effective January 1, 2013, auto park operators will be required to file a bond with the Office of Finance, naming the City of Los Angeles asexclusive beneficiary, at all times the operator engages in such business. The bond shall be in the following amounts:

If the annual gross receipts for theparking facility, or the estimated annualgross receipts for a new parkingfacility, are:

Then thebondamountshall be:

Less than $50,000 $5,000$50,000 - $100,000 $10,000$100,000.01 - $150,000 $15,000$150,000.01 - $200,000 $20,000$200,000.01 - $250,000 $25,000$250,000.01 - $300,000 $30,000$300,000.01 - $350,000 $35,000$350,000.01 - $400,000 $40,000$400,000.01 - $450,000 $45,000$450,000.01 - $500,000 $50,000$500,000.01 - $600,000 $60,000$600,000.01 - $700,000 $70,000$700,000.01 - $800,000 $80,000$800,000.01 - $900,000 $90,000$900,000.01 - $1,000,000 $100,000$1,000,000.01 - $1,250,000 $125,000$1,250,000.01 - $1,500,000 $150,000$1,500,000.01 - $1,750,000 $175,000$1,750,001.01 - $2,000,000 $200,000$2,000,000.01 - $2,250,000 $225,000$2,250,000.01 - $2,500,000 $250,000$2,500,000.01 - $3,000,000 $300,000$3,000,000.01 - $3,500,000 $350,000$3,500,000.01 - $4,000,000 $400,000$4,000,000.01 - $4,500,000 $450,000$4,500,000.01 - $5,000,000 $500,000$5,000,000.01 - $6,000,000 $600,000Greater than $6,000,000.01 $700,000

2. A bond, in the applicable amount as prescribed above, must be filed no later than February 28, 2013, for each parking facility conducted by an

operator prior to January 1, 2013. For every parking facility commencing business on or after January 1, 2013, each operator must file the applicable bondno later than the close of business on the last day of the month following the month in which the operator commences operation of the parking facility.

3. The Director of Finance, or the Director's designee, may independently establish the annual gross receipts for a parking facility and set the bondamount pursuant to the above schedule, based on that determination. If, at the end of the calendar year, the gross receipts for a parking facility haveincreased to at least five percent above the amount that would be required for the next larger bond under the above schedule, the operator, as defined herein,shall obtain a new bond in the increased amount by the following February month-end. If at the end of any calendar year the gross receipts for the parkingfacility have decreased by at least five percent below the amount that would be required for the next smaller bond under the above schedule, the operatormay apply to the Office of Finance for a reduction of the bond amount.

4. This bond requirement does not apply to an operator that is a governmental entity. However, this bond requirement is applicable to a non-governmental applicant operating a parking facility on behalf of a governmental entity.

5. This bond requirement is applicable for each parking facility conducted by the operator, whether in the capacity of owner, lessee, mortgagee inpossession, licensee, valet or other service supplier or any other capacity.

6. The bond shall be executed by the operator as principal, and by a corporation or association which is licensed by the Insurance Commissioner ofthe State of California to transact the business of fidelity and surety insurance, as surety. The operator shall keep the bond in full force and effect for theduration of the PORC and all renewals thereof issued to such operator. If the bond provides that the term thereof shall be continuous until canceled, theoperator shall provide the Director of Finance, or the Director's designee, with certification from the surety of the renewal or continuation of the bond at thesame time that the applicant files its annual renewal of its PORC.

7. The bond shall contain conditions that require the operator to comply fully with all the provisions of Articles 1 and 1.15 of Chapter 2 of the LosAngeles Municipal Code. The bond shall be payable to the City of Los Angeles in the amount of all unpaid Parking Occupancy Taxes on amounts oftaxable parking fees collected by the applicant or operator, together with all administrative collection costs, interest, penalties, and other costs and chargesapplicable thereto; provided however, the aggregate liability of the surety for any and all claims which may arise under such bond shall in no event exceedthe face amount of such bond regardless of the amount due and owing to the City of Los Angeles. The City may bring an action upon the bond for recoveryof any unpaid Parking Occupancy Taxes, administrative collection costs, interest, penalties and other costs and charges at any time prior to the expiration ofthe period of limitations applicable to the collection of such unpaid taxes by the Director of Finance or the Director's designee.

8. The surety may cancel the bond(s) at any time by filing with the Principal, thirty (30) days written notice of its desire to be relieved of liabilitywith mandatory copy sent to the Office of Finance. The surety shall not be discharged from any liability already accrued under the bond(s), or which shallaccrue before the expiration of the thirty (30) day period.

9. The operator and the surety have the express duty to notify the Office of Finance no later than thirty (30) days prior to the termination of a bondagreement.

10. When there is an assessment of Parking Occupancy Taxes against an operator, the Director of Finance, or the Director's designee, shall issue theassessment against the operator, and the operator's surety. The liability of the surety shall not exceed the face value of the bond(s). The Director of Finance,or the Director's designee, shall provide notice of such assessment to the operator and the surety. An operator's request for an administrative hearing shall beconstrued by the Director of Finance, or the Director's designee, as a request on behalf of both the operator and the surety. The surety may request anadministrative hearing pursuant to LAMC Section 21.15.10. The taxpayer and surety hearing may be consolidated at the discretion of the Director ofFinance. Upon the exhaustion of the administrative appeals process, the operator and the surety shall be liable to the City of Los Angeles in the amount ofthe determination or decision reached by the Assessment Review Officer or by the Board of Review. In the event that the amount of the determinationexceeds the amount of the bond(s), the surety shall be liability for the amount of the bond(s) and the operator shall remain liable for the full determination. Ifneither the operator nor the surety request an administrative hearing, the operator and the surety shall be liable to the City of Los Angeles in the amount ofthe assessment, provided that the surety's liability shall not exceed the face amount of the bond.

The surety shall be subject to the same requirements as the operator with regard to payment of the tax liability and exhaustion of administrativeremedies prior to seeking judicial relief. The Director of Finance may exercise all remedies against the surety that are available to the Director of Finance asto an operator or any other person determined to be liable for a tax.

11. Interest and penalty shall continue to accrue on all unpaid Parking Occupancy Taxes that are determined to be owed and due at the exhaustionof the administrative appeals process.

12. An operator that fails to qualify for the issuance of a bond by a surety will be required to establish a deposit account in favor of the City of LosAngeles in the amount of fifty percent of the prescribed bond amount for each parking facility conducted by the operator. The same time periods prescribedfor the filing of a bond with the Office of Finance will be applicable for the establishment of such deposit account.

13. Funds placed into an applicant's or operator's deposit account in favor of the City of Los Angeles are subject to collection by the Office ofFinance as partial or full satisfaction for delinquent Parking Occupancy Taxes as determined at the exhaustion of the administrative appeals process.

14. An operator that either fails to renew a bond or has received thirty (30) day notice from the surety that the bond will be canceled must file anew bond or evidence of a deposit account with the Office of Finance no later than thirty (30) days after the bond's termination.

15. An operator that fails to submit the bond filing(s) to the Office of Finance or fails to establish a deposit account within the prescribed timeperiods will also be subject to the revocation or denial of a Police Auto Park Permit.

SEC. 21.15.7. REPORTING AND REMITTING. (Amended by Ord. No. 176,004, Eff. 7/7/04, Oper. 12/1/04.)

Each operator shall, on or before the 25th day of each calendar month, make a statement to the Director of Finance of the total fees charged and received, andthe amount of tax collected for parking occupancies during the preceding calendar month. At the time the statement is filed, the full amount of the tax collected,and tax not collected but required to be collected, shall be remitted to the Director of Finance. Except as provided in Sec. 21.15.8, an operator shall not be requiredto remit to the Director of Finance any amount of tax not collected and not required to be collected from an occupant. All taxes collected and required to becollected by operators pursuant to this article shall be held in trust for the account of the City until payment thereof is made to the City. The full amount of tax due,whether collected or owed but not collected, under this Article shall be deemed a debt owed to the City by the operator and shall be discharged only upon paymentto the City.

Statements and payments are due immediately upon cessation of business for any reason, at which time the operator shall furnish the Director of Finance withthe name and address of the successor operator.

Notwithstanding the foregoing, the amount of taxes required to be remitted by an operator to the City pursuant to this Section 21.15.7 shall be automaticallyoffset by the City in an amount equal to special taxes levied, collected and satisfied, by a City Community Tax District, formed pursuant to Division 6, Chapter 10of the Los Angeles Administrative Code, against the operator's property during the preceding calendar month. The sum of the operator’s monthly parkingoccupancy tax remittance to the City and the operator’s monthly special tax payment shall equal the amount of parking occupancy tax required to be collectedpursuant to this article. The City may request from the applicable operator or the legislative body of the Community Taxing District documentation or otherinformation necessary to substantiate the special tax payment. (Para. Added by Ord. No. 179,937, Eff. 7/14/08.)

The automatic tax offset of the parking occupancy taxes due pursuant to this article shall not exceed the rate of parking occupancy tax levied by the City, andno tax offset shall be provided for the amount of special taxes paid by an operator in excess of the rate of parking occupancy tax levied by the City. (Para. Addedby Ord. No. 179,937, Eff. 7/14/08.)

SEC. 21.15.8. PENALTIES AND INTEREST.

(a) Taxes collected or required to be collected by an operator which are not remitted to the Director of Finance on or before the due dates fixed in Section21.15.7 of this article, or fixed by the Director of Finance as provided therein, are delinquent.

(b) Interest and penalties for delinquency in remittance of any tax collected or required to be collected, or any deficiency determination, shall attach and bepaid by the operator at the rates and in the same manner as is provided in Section 21.05 of this Chapter for delinquency in the payment of Business Tax, except thata month shall commence on the 26th day of each calendar month and terminate on the 25th day of the succeeding calendar month. (Amended by Ord. No.176,471, Eff. 3/22/05, Oper. 12/1/04.)

(c) The Director of Finance shall have the power to impose additional penalties upon an operator for fraud and negligence in reporting and remitting in thesame manner and at the same rates as are provided in Section 21.05 of this chapter for such penalties upon persons required to pay Business Tax.

(d) For collection purposes only, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the taxherein required to be remitted. (Amended by Ord. No. 174,085, Eff. 8/19/01.)

SEC. 21.15.9. ADDITIONAL POWERS AND DUTIES OF DIRECTOR OF FINANCE.

(a) The Director of Finance shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this article.

(b) In administering and enforcing the provisions of this article, the Director of Finance shall have the same powers and duties with respect to collectingthe tax provided herein as he has under Section 21.15 of this chapter with respect to collecting the Business Tax.

(c) The provisions of Sections 21.17, 21.20 and 21.21 of this chapter shall apply to the administration and collection of the tax provided herein in the samemanner as they apply to the administration and collection of the Business Tax.

SEC. 21.15.10. ASSESSMENT – ADMINISTRATIVE REMEDY.

Whenever the Director of Finance determines that any tax is or may be due to the City under the provisions of this article, the Director of Finance may makeand give notice of an assessment for such tax. The manner of making and providing notice of such assessment, the right to a hearing, the manner of providing forand conducting such hearing, the preparation and service of the decision, and the manner of filing and passing upon exceptions shall be the same as are provided in

Section 21.16 of this chapter.

SEC. 21.15.11. RECORDS.

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this article to keep and preserve, for a period offour years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the City, whichrecords the Director of Finance shall have the right to inspect at all reasonable times.

SEC. 21.15.12. REFUNDS.

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City underthis article, it may be refunded as provided in this section. Except as otherwise provided in this section, refunds of overpaid taxes shall be made in the same manneras is provided in Section 21.07 of this chapter for refunds of overpayments of Business Tax.

(b) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously orillegally collected or received when it is established in a manner prescribed by the Director of Finance that the person from whom the tax has been collected was notliable for the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to suchperson or credited to rent subsequently payable by such person to the operator.

(c) An occupant may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the City by filing a claimin the manner provided in Section 21.07 of this chapter, but only when the tax was paid by the occupant directly to the Director of Finance, or when the occupanthaving paid the tax to the operator, establishes to the satisfaction of the Director of Finance that the occupant has been unable to obtain a refund from the operatorwho collected the tax.

(d) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlementthereto.

SEC. 21.15.13. ACTIONS TO COLLECT. (Amended by Ord. No. 182,283, Eff. 11/19/12.)

Any tax required to be paid by any occupant under the provisions of this Article shall be deemed a debt owed by the occupant to the City. Any such taxcollected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. In addition to the operator itself, the Directorof Finance may collect an operator's liabilities, including interest and penalties, from any person or persons the Director of Finance determines was responsible forperforming the acts of collecting, accounting for, and remitting the Parking Occupancy Taxes to the City and failed to do so, or who had the power to control thefinancial decision-making process by which the operator allocates funds to creditors in reference to the operator's obligation to remit the Parking Occupancy Taxesto the City. When it is not clear who the person or persons responsible to the City are, the Director of Finance may presume the President, Chief Executive Officer,and/or Chief Financial Officer of a corporation or any managing partner or member of an association to be a person responsible for performing such acts. TheDirector of Finance is authorized to name all such persons potentially responsible for performing such acts in a notice of assessment pursuant to Section 21.15.10and may send such notice to the same address to be used for the operator's assessment as set forth in Sections 21.15.10 and 21.16 in this chapter and such personsshall have the same rights as the operator to appeal the assessment as set forth in said sections. The liability of such persons shall be joint and several with eachother and with the operator. Any person owing money to the City under the provisions of this Article shall be liable to an action brought in the name of the City forthe recovery of such amount. Any operator who undertakes legal action to recover any unpaid parking fee from an occupant may include the amount of tax duefrom the occupant in the amount sought to be recovered.

SEC. 21.15.14. SAVINGS CLAUSE.

If any section, subsection, part, clause, sentence or phrase of this article or the application thereof is for any reason held to be invalid or unconstitutional by thedecision of any court of competent jurisdiction, the validity of the remaining portions of this article, the application thereof and the tax imposed shall not be affectedthereby, but shall remain in full force and effect, it being the intention of the City Council to adopt each and every section, subsection, part, clause, sentence orphrase regardless of whether any other section, subsection, part, clause, sentence or phrase or the application thereof is held to be invalid or unconstitutional.

ARTICLE 1.16SPECIAL POLICE COMMUNICATIONS / 911 SYSTEM TAX

(Art. 1.16, Chapter II, approved by the voters of Los Angeles, Nov. 3, 1992, Special Municipal Election, Added by Ord. No. 168,368, Eff. 12/4/92.)

Section21.16.1 Definitions.21.16.2 Exemptions.21.16.3 Special Tax.21.16.4 Purpose.21.16.5 Special Fund.21.16.6 Tax Rate.21.16.7 Adjustments and Refunds.21.16.8 Amendments.21.16.9 Savings Clause.

SEC. 21.16.1. DEFINITIONS. (Added by Ord. No. 168,368, Eff. 12/4/92.)

The following words and phrases whenever used in this article shall be construed as defined in this section:

(a) “building” shall mean any structure having a roof supported by columns or walls, for the housing, shelter or enclosure of persons, animals,chattels or property of any kind;

(b) “improvement to property” shall mean a building or other improvement erected on or affixed to a parcel;

(c) “parcel” shall mean a unit of real property as shown on the last equalized assessment roll of Los Angeles County; and

(d) “system” shall mean a police dispatch system, known as the Police Emergency Command Control Communications System, which includes thefollowing: a replacement and enhanced voice and digital radio system component; a replacement for the Police Department’s computer-aided dispatchsystem and the associated police dispatch center located in the metropolitan area; hand-held radios and mobile data terminals; and the addition of a newpolice/fire 9-1-1 communications component, and a new police communications and dispatch center to be located in the San Fernando Valley.

SEC. 21.16.2. EXEMPTIONS. (Added by Ord. No. 168,368, Eff. 12/4/92.)

(a) Nothing in this article shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation ofeither the Constitution of the United States or the Constitution of the State of California.

(b) The tax imposed by this article shall not be levied upon the federal government, the state government, any state agency, or any local governmentalagency.

(c) The tax imposed by this article shall not be levied upon a parcel of property or improvement which is owned by an organization described in Sections401(a), 501(c), or 501(d) of Title 26 of the United States Code. All sections of the United States Code shall mean those sections as they exist on the effective dateof this article and as they may be amended thereafter.

SEC. 21.16.3. SPECIAL TAX. (Added by Ord. No. 168,368, Eff. 12/4/92.)

(a) There is hereby imposed a special tax on each parcel, improvement to property, and the use of property within the City of Los Angeles (hereafter“City”) for the purposes set forth in this article. The special tax shall be for a period not greater than 20 fiscal years, commencing with the fiscal year 1993-94 asset forth in Section 21.16.6 hereof.

(b) This tax is enacted under the authority of Section 101 of the Los Angeles City Charter, other authority held as a charter city, and, independentlythereof, under the authority of California Government Code Sections 50075-50077.5 and California Government Code Sections 53970-53979. (Amended by Ord.No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)

SEC. 21.16.4. PURPOSE. (Added by Ord. No. 168,368, Eff. 12/4/92.)

(a) (i) The purpose of this special tax is to provide funds to the City to pay or fund:

1. lease payments to be made by the City pursuant to any lease of the System or any component thereof, including any land or building tobe acquired or constructed;

2. expenses incurred incident to the authorization, issuance or sale of the bonds referred to below (including refunding bonds);

3. costs or expenses incurred by any lessor of any component of the System in connection with the execution, performance or enforcementof any such lease or any assignment thereof, the acquisition, construction or ownership of any such component or the lease thereof to the City,including, but not limited to, fees, costs, expenses or administrative costs of any such lessor in connection with any such component;

4. costs or expenses (including attorneys’ fees and disbursements) of any trustee under any trust agreement or indenture under which any ofthe bonds referred to below are issued, including but not limited to compensation and indemnification of any such trustee;

5. any amounts required to be paid into any reserve fund created under any such trust agreement or indenture, or amounts to be set aside fordeposit into reserve funds for bonds referred to below (including refunding bonds) theretofore or thereafter issued;

6. any insurance premiums payable on account of any component of the System or its use or operation, as well as amounts paid to or to beset aside in any self-insurance fund or risk retention account, or amounts to be set aside to provide for payment of any deductible under anyinsurance policy;

7. any amounts payable incident to obtaining or maintaining, or otherwise pursuant to, any credit enhancement or liquidity agreements orarrangements with respect to any of such bonds or lease;

8. any amounts payable

(a) incident to obtaining or maintaining, or otherwise pursuant to, any surety bond, letter of credit or other credit arrangementobtained to fund initially or at any later date any reserve fund or part thereof created under any such trust agreement or otherwise in respect ofsuch bonds, or

(b) to reimburse for any payment made under any such surety bond, letter of credit or other credit arrangement, including interestthereon;

9. any amounts payable pursuant to any contract entered into pursuant to Section 21.16.4 (a)(iii);

10. any amounts required to be paid to the United States of America as a rebate in order for interest payments on any of such bonds to beexempt from federal income taxes;

11. any amounts to be set aside for payment or prepayment of future lease payments in respect of any component of the System (whetherthen leased or expected to be leased thereafter) or for the defeasance, payment, prepayment or redemption of any of the bonds referred to below(including refunding bonds), including the payment of any prepayment penalty or premium;

12. the costs of collecting and administering the tax; and

13. any amounts required to reimburse the General Fund of the City for amounts withdrawn from the General Fund and used for any of thepurposes set forth in this Section 21.16.4.

(ii) The lease payments referred to in Section 21.16.4(a)(i) will serve as collateral for and the source of repayment of not to exceed $235,000,000aggregate principal amount of lease revenue bonds to be issued as a single issue, or in two or more issues or series of an issue, by a nonprofit corporation,joint powers authority or other financing medium. Such lease payments may also serve as collateral for and the source of repayment of refunding bondsissued to refund lease revenue bonds; provided, however, that unless approved by a vote of not less than two-thirds of the votes cast by voters voting on aproposition to increase the bonding authority, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus theprincipal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded plus the principal amount of the bonds tobe refunded.

The net proceeds of the lease revenue bonds (excluding refunding bonds) are to be used to acquire, construct or install components of the System. TheSystem is required to provide more rapid, efficient delivery of response of police, fire, paramedic and other emergency services in the City. In the event theCity shall lease any components of the System under a lease that is payable from the General Fund as well as from the special tax, and such lease providesfor abatement of rent or other payments either in whole or in part in the event of damage to or destruction of any such components, then, in the event there isany such abatement, payments from the special tax permitted by this Section 21.16.4 shall be allocated first to, or in respect of, any component of theSystem for which payment from the General Fund has abated due to such damage or destruction, and thereafter to the balance of the components.

(iii) In connection with or incident to the entering into or maintaining any lease of the System or any component thereof or the issuance ormaintenance of any lease revenue bonds contemplated by this ordinance, the City may enter into any contracts which it determines to be necessary orappropriate to place the obligations under any lease of the System or any component thereof, or to place the obligations under the lease revenue bonds, inwhole or in part, on the interest rate, currency, cash flow or other basis desired by the City, including without limitation, contracts commonly known asinterest rate swap agreements, currency swap agreements, forward payment conversion agreements, futures, or contracts providing for payments based uponlevels of, or changes in, interest rates, currency exchange rates, stock or other indices, or contracts to exchange cash flows or a series of payments, or

contracts, including without limitation, interest rate floors or caps, options, puts or calls to hedge payment, currency, rate, spread or similar exposure. Thesecontracts may be entered into with the parties, selected by the means, contain the payment, security, default, remedy and other terms and conditions,determined by the City, after giving due consideration to the creditworthiness of the counter-parties where applicable, including any rating by a nationally-recognized rating agency or other criteria as may be appropriate. The City shall not enter into any of the foregoing contracts unless the City Council firstdetermines that the contract is designed to result in a lower payment by the City incident to the lease of the System or any component thereof. Contracts orarrangements authorized by the foregoing shall comply with the provisions of Section 5922(b) of the California Government Code (as in effect on the datethis Ordinance is approved by a vote of not less than two-thirds of the votes cast by the voters voting on the special tax set forth herein) to the extentapplicable.

(b) The Los Angeles City Council (hereafter “City Council”) may provide for the collection of the special tax in the same manner and subject to the samepenalties as, or with, other charges and taxes fixed and collected by the City, or by the County of Los Angeles on behalf of the City of Los Angeles. If the specialtax is collected by the County on behalf of the City, the County may deduct its reasonable costs incurred for such service.

(c) Director of Finance of Los Angeles (hereafter “Director of Finance”) costs and other costs of enforcement and administration of the tax, includingrefunds, shall be paid from the special tax revenues.

(d) No more than $235,000,000 of lease revenue bonds shall be issued under the authority of this Ordinance, unless a greater amount shall be approved bya vote of not less than two-thirds of the votes cast by voters voting on a proposition to increase the bonding authority; provided, however, that without such voterapproval, refunding bonds may be issued as specified in Section 21.16.4 (a) hereof; and provided further that approval for additional bonding authority shall notconstitute approval of any increase in the maximum tax rate authorized by Section 21.16.6 hereof, nor shall it extend the period during which the tax may beimposed, unless expressly approved by a vote of not less than two-thirds of the votes cast by voters voting on a proposition to so change the tax rate or to extend theperiod during which the tax may be imposed.

SEC. 21.16.5. SPECIAL FUND. (Added by Ord. No. 168,368, Eff. 12/4/92.)

(a) There is hereby established a special fund in the City Treasury entitled Special Police Communications/9-1-1 System Tax Fund. Money collectedpursuant to this article shall be deposited into said special fund and shall be used exclusively as provided in this article for the purpose for which the tax is imposed,and for no other purpose. Money deposited into this special fund shall not be subject to reversion to the Reserve Fund of the City, established under Charter Section302. Nothing in this section shall prevent disbursements from this special fund to reimburse the General Fund when money has been advanced from the GeneralFund to pay the uses provided for in this article. (Amended by Ord. No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)

(b) The City Treasurer and Controller shall establish within the Special Police Communications/9-1-1 System Tax Fund separate accounts or accountingcontrols so as to enable the City Treasurer and Controller to account for the uses for which the moneys deposited into the Special Police Communications/9-1-1System Tax Fund are to be used.

(c) Except as hereinafter provided in Subsection (d) of this section, (i) during each fiscal year, any money raised by the special tax that remains or (byresolution of the City Council) becomes unencumbered for any of the purposes set forth in Section 21.16.4 hereof may be reallocated to other purposes authorizedby this article by resolution of the City Council and (ii) at the end of any fiscal year any money raised by the special tax that remains unencumbered for any of thepurposes set forth in Section 21.16.4 hereof may only be used in succeeding fiscal years for the purposes stated in this article as authorized by resolution by the CityCouncil; provided, however, that the Director of the Office of Administrative and Research Services may reallocate moneys raised by the special tax to otherpurposes set forth in Section 21.16.4 hereof and may authorize the use of moneys raised by the special tax that are unencumbered or unallocated for any of thepurposes set forth in Section 21.16.4 hereof so long as the amount so reallocated or authorized shall not be greater than the amount referred to in Charter Section343 (as amended from time to time) as the amount which the Director of the Office of Administrative and Research Services is empowered to authorize theController to transfer without the approval of the Mayor and the City Council upon the request of the head of any department. The availability of unencumberedmoneys for any succeeding year shall be considered by the City Council when fixing the rates of tax for that year. (Amended by Ord. No. 173,304, Eff. 6/30/00,Oper. 7/1/00.)

(d) Any amount remaining in the Special Police Communications/9-1-1 System Tax Fund after all lease revenue bonds issued to finance the System havebeen repaid in full, shall be used solely and exclusively for maintaining, replacing or improving police communications and dispatch equipment and systems.

SEC. 21.16.6. TAX RATE. (Added by Ord. No. 168,368, Eff. 12/4/92.)

(a) The tax imposed on each parcel, improvement to property, and use of property shall be computed for each parcel by applying a rate to the gross squarefootage area of any improvements on the parcel. If there are no improvements on a parcel, the tax shall be computed by applying the rate established forimprovements to 500 square feet regardless of the size of the parcel. For a period of not more than 20 fiscal years, commencing with fiscal year 1993-94 andcontinuing through fiscal year 2012-13, the City Council, by ordinance, shall impose a rate applicable to unimproved parcels and, for each parcel upon which thereis an improvement to property, shall impose a rate applicable to the gross square footage area of such improvements, regardless of the use of the parcel orimprovements. The rate shall be established to provide revenue for each fiscal year sufficient to make the payments estimated to be needed, or to fund amounts tobe set aside, for the purposes enumerated in Section 21.16.4 hereof prior to receipt of tax revenues derived from the tax to be imposed in the subsequent fiscal year,and in setting the rate, the City Council shall take into account possible delinquencies in payments, so that the amount expected to be collected, net of delinquencies,

will be sufficient to make the estimated needed payments.

(b) Commencing with the 1993-94 fiscal year, and for each of the succeeding fiscal years during which the special tax may be imposed, the maximum taxrate for the improvements on a parcel shall be $1.75 per one hundred gross square feet of improvement area or fraction thereof.

(c) For any fiscal year the City may, by ordinance, adjust the tax rate below the maximum amount. Such a reduction shall not prevent a subsequent levy oftaxes for any succeeding fiscal year up to the limits set forth in this Section 21.16.6; however, in no case shall the amount of the tax rate to be levied exceed themaximum amount established by this article without the approval of the voters by two-thirds of the votes cast by voters voting upon such change in the tax ratemaximum.

SEC. 21.16.7. ADJUSTMENTS AND REFUNDS. (Added by Ord. No. 168,368, Eff. 12/4/92.)

(a) Requests for adjustments involving imposition of this tax may be filed with the Director of Finance. Upon sufficient evidence of error in thecomputation of the tax the Director of Finance or a designee of the Director of Finance shall cause the tax to be recalculated, and shall so advise the Los AngelesCounty Tax Collector or other appropriate official.

(b) Whenever it is alleged that the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received bythe City under this article, the refund procedure shall be as follows:

1. No claim for refund of tax payment shall be allowed in whole or in part unless filed with the Director of Finance within a period of three yearsfrom the date of the claimed overpayment. All such claims for refund of the amount of the overpayment must be filed on forms furnished, and in the mannerprescribed, by the Director of Finance. Refunds may be made from the Special Police Communications/9-1-1 System Tax Fund.

2. In the event the Director of Finance or the City Council denies the claim, the Director of Finance shall notify the claimant pursuant to CaliforniaGovernment Code Section 913.

(c) The Director of Finance shall have the same power to compromise claims involving the special tax, and the same power to accept and recordunderpayments or overpayments of such tax, as granted to the Director of Finance under Subsections (f) and (g) of Section 21.15 of the Los Angeles MunicipalCode with respect to Business Taxes. The Director of Finance shall have the same authority to make refunds of this tax as is provided in Sections 22.12 and 22.13of the Los Angeles Municipal Code.

(d) If the County of Los Angeles does not collect any tax due under this article, then the Director of Finance shall have the power and duty to enforce all ofthe provisions of this article. In such cases the Director of Finance, for taxes not paid, may make an assessment against the owner of a parcel and improvements, oragainst the owner of improvements on another’s land, in the manner provided in Section 21.16 of the Los Angeles Municipal Code. Any unpaid tax due under thisarticle shall be subject to Sections 21.19, 21.20, and 21.21 of the Los Angeles Municipal Code.

(e) The special tax shall be due in two equal installments in accordance with the collection procedures of the Los Angeles County Tax Collector with thefirst installment due November 1, and the second installment due the next succeeding February 1, in each fiscal year. The owner of the land, land andimprovements, or improvements, at the time set forth in California Revenue and Taxation Code Sections 405 and 2192 for each fiscal year, shall have a personalobligation to the City until the tax is paid for each fiscal year.

(f) The Director of Finance may prepare a questionnaire to be served on the owner of a parcel or improvements subject to the tax imposed by this article. The failure by an owner to provide the information requested within 30 days of receipt of the request, or the act of an owner in knowingly providing falseinformation, shall be a misdemeanor.

(g) In determining the gross square footage area of improvements the City may use County Assessor’s records, City records, questionnaires and any otherrecords the Director of Finance deems reliable.

SEC. 21.16.8. AMENDMENTS. (Added by Ord. No. 168,368, Eff. 12/4/92.)

Procedural provisions of this article may be amended by ordinance passed by the City Council.

SEC. 21.16.9. SAVINGS CLAUSE. (Added by Ord. No. 168,368, Eff. 12/4/92.)

If any section, subsection, part, clause, sentence or phrase of this article or the application thereof is for any reason held to be invalid or unconstitutional by thedecision of any court of competent jurisdiction, the validity of the remaining portions of this article, the application thereof, and the tax imposed shall not beaffected thereby but shall remain in full force and effect, it being the intention of the City Council and the voters to adopt each and every section, subsection, part,clause, sentence or phrase, regardless of whether any other section, subsection, part, clause, sentence or phrase or the application thereof is held to be invalid or

unconstitutional.

ARTICLE 1.17ENTERPRISE ZONE HIRING TAX CREDIT VOUCHER APPLICATION FEES

(Added by Ord. No. 176,632, Eff. 6/14/05.)

Section21.17.1 General.21.17.2 Fees for Application.21.17.3 Reduction of Fees.21.17.4 Notice of Fee Increases.21.17.5 Hold Harmless.

SEC. 21.17.1. GENERAL.

All applicants seeking an Enterprise Zone Hiring Tax Credit Voucher as authorized by Sections 17053.74 and 23622.7 of the California Revenue and TaxationCode shall pay a service fee to the Community Development Department, the City's Enterprise Zone Administrator for processing such applications.

SEC. 21.17.2. FEES FOR APPLICATION.

The State of California has established a fee of ten dollars ($10.00) for each application submitted to the State by the local Enterprise Zone Administratoreffective November 1, 2004 pursuant to the provisions of California Government Code Section 7086. The City has determined that an additional twenty-five dollarfee ($25.00) is required to offset the cost of processing such applications by the City. Applicants for an Enterprise Zone Hiring Tax Credit Voucher shall pay aservice fee of thirty-five dollars ($35.00) to the Community Development Department. The Department shall submit ten dollars ($10.00) of this fee to the State ofCalifornia as required by State law. The balance of fees collected shall be used to offset costs of administering the program by the Community DevelopmentDepartment.

SEC. 21.17.3. REDUCTION OF FEES.

In the event that the State law authorizing the collection of the ten dollar ($10.00) fee for the State should no longer be in effect, the fee to be charged by theCommunity Development Department for each application shall be twenty-five dollars ($25.00).

SEC. 21.17.4. NOTICE OF FEE INCREASES.

If the State determines that the fee to be collected by the Enterprise Zone Administration is to be increased above the ten dollars ($10.00) currently authorized,the General Manager of the Community Development Department or an authorized representative shall issue adequate public notice of the fee increase and shalladjust its collection of the fee in conformity with the State requirements.

SEC. 21.17.5. HOLD HARMLESS.

Neither the adoption of this ordinance which provides authority for the collection of the State's Enterprise Zone Tax Credit Voucher Application Fee, nor anyaction by any representative of the City in carrying out this ordinance shall constitute City approval of or ratification of the State's law.

ARTICLE 2DEFINITIONS – AUTHORITY AND PROCEDURE – REVOCATION OF PERMITS

Section22.00 Permits – Board of Police Commissioners.22.01 Permit Requirements Limited to Original Permits.

22.02 Power to Revoke and Suspend Permits or Certificates – Procedure.22.03 Board to Notify Permittee.22.04.1 Failure to Pay Fee Due Under Article 1 of this Chapter.22.05 Suspended or Revoked Permits – Permittee Not to Engage in Business.22.06 Misstatement in Application – Grounds for Revocation.22.11 Licenses – Veteran’s Exemptions.22.11.1 Veterans’ Exemptions – Subterfuge Prohibited.22.12 Refunds – Tax, License and Permit Fees in Excess of $5,000.22.13 Refunds of Tax, License, Permit or Application Fees by Heads of Departments.

SEC. 22.00. PERMITS – BOARD OF POLICE COMMISSIONERS.

(a) Definition. For the purposes of this chapter, “Board” shall mean the Board of Police Commissioners unless otherwise specifically provided.

(b) Applications. Notwithstanding any provision of this Code to the contrary, every person desiring to conduct, manage, carry on or engage in anybusiness for which a permit is required from the Board under this Code, shall file the application for such permit with the Director of Finance upon forms provided.Applications for change of location, change of ownership, additional locations, or for special officer commission shall be filed with the Director of Finance. Uponreceipt of the application for a permit or applications for change of location, change of ownership, additional locations or for special police officer commissions, theDirector of Finance shall send such applications to the Board. (Amended by Ord. No. 137,438, Eff. 11/7/68.)

(c) Permit Fees. Notwithstanding any provision of this Code to the contrary, all fees for permits from the Board, annual police permit fees, change oflocation fees, change of ownership fees and special fees for additional locations shall be collected by the Director of Finance. Upon receipt of said fees provided bythis Code, the Director of Finance shall deposit such fees with the City Treasurer. (Amended by Ord. No. 137,438, Eff. 11/7/68.)

SEC. 22.01. PERMIT REQUIREMENTS LIMITED TO ORIGINAL PERMITS.

All provisions of this Code and of any other ordinance of this city which provide that no person shall conduct, carry on, or engage in any business, profession,trade or occupation or do or allow to be done any act, without first obtaining a permit from the Board so to do, shall be deemed to apply only to those caseswherein original permits are sought. In cases involving revocation or suspension proceedings before the Board, the permittee may, upon paying the annual policepermit fee, continue the activity authorized by their permits pending action of the Board upon such proceedings. (Amended by Ord. No. 137,438, Eff. 11/7/68.)

SEC. 22.02. POWER TO REVOKE AND SUSPEND PERMITS OR CERTIFICATES – PROCEDURE.

Any permit or certificate granted pursuant to the provisions of this Code to any person to conduct, carry on or engage In any business, profession, trade oroccupation by any Board, Commission or other person having authority to do so, unless provision is otherwise specifically made, shall not be revoked or suspendedexcept as provided in this section.

No such permit or certificate shall be revoked or suspended until a hearing upon written notice to the permittee or certificate holder shall have been had by theBoard, Commission or other person having authority to do so. Written notice of such hearing shall be served upon the permittee or certificate holder in the mannerprovided for the giving of notice in Section 11.00 of this Code.

Such notice shall state:

(a) The grounds for complaint or reasons for the revocation or suspension in clear and concise language.

(b) The time when and the place where such hearing is to be held.

If a verified complaint is required to be filed with the Board, Commission or other person having authority to revoke or suspend such permit or certificate, or ifany Board or Commission shall have power to initiate its own complaint, then a true and correct copy of such complaint shall be served on the permittee orcertificate holder in lieu of stating the grounds of complaint. However, notice of the time when and the place where such hearing is to be held shall be served withsuch complaint.

Such notice or copy of complaint shall be served or given to the permittee or certificate holder at least five (5) and not more than ten (10) days prior to the dateset for said hearing.

At any such hearing the permittee or certificate holder shall be given an opportunity to be heard and defend himself, and he may call witnesses in his behalf.

The Board, Commission or other person conducting such hearings may continue such hearings from time to time upon good cause being shown therefor.

After conducting such hearing the Board, Commission or other person having authority may suspend or revoke any such permit or certificate upon such termsand conditions as, in the exercise of a reasonable and sound discretion, it shall determine.

Revocation of permit granted by it by a municipal board is a proper exercise of police power. Vaughn v. Board of Police Commissioners, 59 Cal. App. 2d 771, 775.

SEC. 22.03. BOARD TO NOTIFY PERMITTEE.

The Board, Commission or other person having authority to revoke or suspend such permits or certificates shall, orally or in the manner provided in Section11.00 for giving notice, notify permittee or certificate holder of any finding, suspension or revocation made by it or any conditions attached thereto.

SEC. 22.04.1. FAILURE TO PAY FEE DUE UNDER ARTICLE 1 OF THIS CHAPTER.

Whenever under any provision of this Code a regulatory permit is required for the conduct of any business or occupation upon which a business tax is imposedby Article 1 of this chapter, or upon which a parking occupancy tax is imposed by Article 1.15 of this chapter, the failure to pay that business tax or parkingoccupancy tax will be grounds for the suspension or revocation of the permit, but the procedure outlined in Section 22.02 shall be followed. (Amended by Ord.No. 180,488, Eff. 3/7/09.)

SEC. 22.05. SUSPENDED OR REVOKED PERMITS – PERMITTEE NOT TO ENGAGE IN BUSINESS.

No person whose permit or certificate has been revoked or suspended pursuant to Section 22.02, or pursuant to any other provision of this Code, shall engagein or carry on any business or do any act permitted to be done pursuant to such permit or certificate during the period of suspension or after revocation thereof, untila new permit or certificate shall have been granted.

SEC. 22.06. MISSTATEMENT IN APPLICATION – GROUNDS FOR REVOCATION.

No person shall make any false, misleading or fraudulent statement or misrepresent any fact in any application for a permit or in any notice or record requiredto be filed with any Board, Commission or other authorized person of this City. In addition to any other penalties provided in this Code, such conduct shall begrounds for suspending or revoking any permit issued to such person.

SEC. 22.11. LICENSES – VETERAN’S EXEMPTIONS. (Amended by Ord. No. 173, 587, Eff. 12/7/00.)

(a) (Amended by Ord. No. 127,508, Eff. 6/29/64.) Every honorably discharged soldier, sailor or marine of the United States who is unable to obtain hislivelihood by manual labor shall have the right to hawk, peddle and vend any goods, wares or merchandise, except spirituous, malt, vinous, mixed or otherintoxicating liquors, without payment of any license or fees required by this code or ordinance of this city providing for the payment of such license fee. Acertificate of disability by a surgeon of the United States Army or Navy, or by the police surgeon of this city, or any physician regularly employed in the receivinghospital of this city, shall be sufficient proof of such disability. A certificate of honorable discharge from the United States Army or Navy, or an exemplified copythereof, shall be sufficient proof of such service and honorable discharge, and upon presentation of the same it shall be the duty of the Office of Finance to issue alicense without cost to such a soldier, sailor or marine.

The fact that Section 22.11 exempts a person from having to pay for a license does not excuse one from obtaining a license. People v. Fitzgerald, CR A 1942.

(b) Each and every license issued under the provisions of this section shall not be transferable and shall be for the exclusive use of the person whose nameis inserted therein. Such person shall be required to write his name on the margin of such license and on the stub retained by the Office of Finance at the time suchlicense is issued. Such person shall be required to furnish to the Office of Finance at the time of application for such license, two copies of a photograph of himself.It shall be and hereby is made the duty of the Office of Finance to satisfy himself by proper examination and investigation that the same photograph is a truelikeness of the person who makes the application and whose name appears in the discharge and in the physician’s certificate. One copy of said photograph shall beattached to the license and the other shall be attached to the stub written by the Office of Finance. The photograph shall at all times be kept attached to the license,and any license found without such photograph attached thereto shall be taken up and be forfeited and the person to whom said license is issued, and the holderthereof, shall forthwith surrender all rights thereunder and shall not again be entitled to any license.

Such person shall identify himself by his signature whenever required so to do by any police officer, license inspector, license collector or other officer of theCity. Should any such license be found in the possession of any person other than the person named therein it shall be taken up, surrendered to the Office of Financeand cancelled, and the holder thereof shall not again be entitled to a license under this section.

Whenever the holder of any license uses any wagon, cart, tray, basket or other vehicle or receptacle in vending any goods, wares or merchandise such licenseshall be inserted, held and carried in a license holder to be furnished by the Office of Finance, and in the manner prescribed by law.

Every license issued under the provisions of this section shall be issued for a period of one year from date of issuance thereof. Upon the expiration of any

license, as herein provided, a new license shall be issued under the provisions of this section. Not more than one license shall be issued to any discharged soldier,sailor or marine during any one calendar year from the date of the original license.

(c) No person, except the person named in such license, shall use or have in his possession any license issued under the provisions of this section.

(d) No person shall sell, purchase or transfer any license issued under the provisions of this section or transfer or convey the discharge or certificatementioned herein to any other person for the purpose of securing the license herein provided for.

SEC. 22.11.1. VETERANS’ EXEMPTIONS – SUBTERFUGE PROHIBITED.

(a) Purpose of Section. A veteran’s license to hawk, peddle and vend goods, wares and merchandise issued pursuant to Section 22.11 shall not be deemedto authorize the license to solicit charitable contributions by subterfuge or without the permission of the Board of Police Commissioners, as required by Article 4 ofChapter 4 of this Code. (Amended by Ord. No. 173,283, Eff. 6/26/00, Oper. 7/1/00.)

(b) Free License – Summary Revocation. Any police officer or other person charged with the duty of enforcing the license provisions of this Code shallsummarily take away the free license of any person holding such a license who is observed to violate any provision of Article 2 Chapter 4 of this Code, relating to“Soliciting-Begging.” Any license so taken up shall be delivered to the Director of Finance who shall mark it “cancelled.” No subsequent free license shall beissued to the same licensee.

SEC. 22.12. REFUNDS – TAX, LICENSE AND PERMIT FEES IN EXCESS OF $5,000. (Amended by Ord. No. 173, 587, Eff. 12/7/00.)

(a) (Amended by Ord. No. 170,745, Eff. 12/3/95.) Whenever any money is excess of $29,457.00, including any tax administered by the City, license orpermit fee, or fee for the renewal or transfer thereof, is collected or received by this City, it may be refunded as herein provided, and not otherwise, if a verifiedclaim in writing therefor is filed with the City Clerk within 12 months after the date of payment. The claim shall be audited in the manner provided for in theCharter and shall be made on forms prescribed by the Controller. Such refund may be made only under the following conditions:

1. In any of the conditions specified under Subsection (a) of Section 22.13 of this Code;

2. Where the money paid was not required by law, or, was erroneously or illegally collected or received by this City through mistake, inadvertenceor error of law or of fact, and whether paid or charged under color of any provision of this Code, or otherwise.

(b) This section is remedial in purpose; its terms and requirements shall not be deemed to limit or qualify the lawful right of any person to bring ormaintain any action or proceeding based upon the general law of this state for any remedy provided by that law. (Added by Ord. No. 79,588, Eff. 5/21/38.)

(c) The monetary limitations in Subsection (a) above shall be subject to an adjustment at the beginning of each fiscal year after 1995-96 based upon theConsumer Price Index for all urban consumers for the Los Angeles area published by the United States Department of Labor, Bureau of Labor Statistics. TheController shall calculate the adjustment in accordance with the methodology used to calculate monetary limits for intra departmental fund transfers pursuant to LosAngeles City Charter Section 343(c) and shall notify department heads in writing of the adjusted monetary limit. (Amended by Ord. No. 173,304, Eff. 6/30/00,Oper. 7/1/00.)

SEC. 22.13. REFUNDS OF TAX, LICENSE, PERMIT OR APPLICATION FEES BY HEADS OF DEPARTMENTS. (Amended by Ord. No. 173, 587, Eff. 12/7/00.)

(a) The head of any department or office in which there is collected or received for and on behalf of the City any tax administered by the City, license fee,permit fee or application fee may, upon written application of the person who paid such tax or fee, filed with such department or office, refund all or part of suchpayment as herein provided, and not otherwise, without the necessity of first receiving the approval of the City Council therefor, if such refund does not exceed thesum of $29,457.00, and if the head of such department or office is satisfied, upon such proof as may be presented to or required by him or her, that any of thefollowing conditions exist: (First Sentence Amended by Ord. No. 174,174, Eff. 9/21/01.)

1. Where a refund is specifically authorized by the provision of law requiring payment of the tax, license, permit or application fee.

2. Where the money is paid to secure a business tax registration certificate, license or permit not required by law.

3. Where the amount paid was in excess of the amount required by law.

4. Where the money paid was not required by law.

5. Where the applicant for any business tax registration certificate, license or permit has not, at any time after the commencement of the period orterm during which the requested certificate, license or permit would have been effective, commenced or engaged in the business or occupation, or performedany act, for which the certificate, license or permit was required; or where a person has filed an application or appeal and subsequently has withdrawn said

application or appeal; provided, however, that the City has not made any physical inspection or examination of real property, held or conducted any hearing,performed any tests, or done any similar work, whether required or contemplated by law or not, as a result of the filing or issuance of any of the foregoing;and, provided further, that the certificate, license, or permit, if the same has in fact been issued, must be surrendered for cancellation and a written request forsuch cancellation must be filed with the department of the City issuing the same on or before the date of refund. In case of refunds made under thiscondition, 20 percent of the amount paid shall be deducted and retained by the City to cover clerical and other overhead costs and expenses entailed in thetransaction.

(b) The provisions of this section shall not relieve any person from compliance with the provisions of Section 350 of the Charter relating to thepresentation of claims prior to the bringing of a suit or action thereon, or be deemed to limit or qualify the lawful right of any person to bring or maintain any actionor proceeding based upon the general law of this state for any remedy provided by that law. (Amended by Ord. No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)

(c) The head of any department or office making any refund of taxes or fees hereunder is hereby authorized to cause a demand to be drawn on the generalfund or such other fund in which such tax, license, permit or application fee may have been deposited. (Amended by Ord. No. 174,174, Eff. 9/21/01.)

(d) The head of any department or office, authorizing any refund of taxes or fees hereunder, shall cause a detailed report thereof to be made, showing thenames and addresses of the persons receiving such refunds, the amounts thereof, the kinds of taxes or fees refunded, and the reasons why said refunds were made. Such report shall be transmitted to the Council and the Controller at such times as the Council may require, but not less frequently than annually. (Amended byOrd. No. 174,174, Eff. 9/21/01.)

(e) The monetary limitations in Subsection (a) above shall be subject to an adjustment at the beginning of each fiscal year after 1995-96 based upon theConsumer Price Index for all urban consumers for the Los Angeles area published by the United States Department of Labor, Bureau of Labor Statistics. TheController shall calculate the adjustment in accordance with the methodology used to calculate monetary limits for intra departmental fund transfers pursuant to LosAngeles City Charter Section 343(c) and shall notify department heads in writing of the adjusted monetary limit. (Amended by Ord. No. 173,304, Eff. 6/30/00,Oper. 7/1/00.)

ARTICLE 6BICYCLES AND VEHICLES

Section26.31 Repossessor of Property – False Personation of Police – Prohibited.

SEC. 26.01. BICYCLES – LICENSES. (Repealed by Ord. No. 180,743, Eff. 7/25/09.)

SEC. 26.31. REPOSSESSOR OF PROPERTY – FALSE PERSONATION OF POLICE – PROHIBITED.

It shall be unlawful for any person, when making or attempting to make any repossession of any motor vehicle or any other personal property, to representhimself as a policeman, or a member of the Police Department of this City, or to be connected with the Department, whether expressly or by implication, or by theuse of display of any emblem, badge, insignia or uniform calculated to indicate that the wearer is a policeman, or a member of the Police Department, or connectedtherewith in any way.

ARTICLE 8ADVERTISING

Section28.00 Definitions.28.01 Handbills – Distribution.28.01.1 Hand-bills and Tip Sheets – Distribution.28.02 Hand-bills – Permission Premises.28.03 Hand-bills, Signs – Buildings Permission.28.04 Hand-bills, Signs – Public Places and Objects.28.05 Hand-bills, Signs – Beach or Tideland of City – Exception.28.08 Hand-bills – Name and Address of Distributor.

28.09 Advertising – Goods as Dealers – Exception.28.10 Balloon – Use for Advertising.28.11 Captive Balloons and Similar Devices.28.12 Airplanes – Loud Speakers On.28.13 Animals – Use for Advertising.28.15 Signs – Liquor Establishments.28.16 Signs – Gasoline Prices – Posting.28.16.1 Signs – Gasoline Sales – Volume.28.17 Signs – Gasoline Prices – Uniformity.28.20 Advertising – Kosher Meat Products.

SEC. 28.00. DEFINITIONS.

For the purpose of this article the following words and phrases are defined, and shall be construed as hereinafter set out, unless it shall be apparent from thecontext that they have a different meaning.

“Hand-bill” shall mean any hand-bill, dodger, commercial advertising circular, folder, booklet, letter, card, pamphlet, sheet, poster, sticker, banner,notice or other written, printed or painted matter calculated to attract attention of the public.

“Tip Sheet” shall mean any written or printed form, chart, sheet or card giving or purporting to give any list or probable list of entries of any horse raceor other contest and having in connection therewith any tip, information, prediction, selection, key or cipher, indicating the probable winner or loser, or theresult or probable result, of such race or contest, or the actual or probable state of the wagering or betting upon or against any horse or other contestant insuch list.

SEC. 28.01. HANDBILLS – DISTRIBUTION. (Amended by Ord. 168,321, Eff. 12/13/92.)

(a) No person shall distribute or cause or direct the distribution of any handbill to passengers on any streetcar or throw, place or attach any handbill to orupon any vehicle.

(b) For the purposes of this section, there shall be a presumption that the business, commercial activity or person whose name appears on any handbill sothrown, placed or attached, threw, placed or attached such handbill, or caused or directed that such handbill be thrown, placed or attached to or upon any vehicle. Said business, commercial activity or person may rebut the foregoing presumption by the presentation of competent evidence that it, him or her did not cause ordirect that any handbill be thrown, placed or attached to or upon any vehicle. In lieu of the use of this presumption, criminal liability may be established by directevidence that the business, commercial activity or person whose name appears on the handbill caused or directed that such handbill be thrown, placed or attached toor upon any vehicle.

The freedom of press guaranteed by the First Amendment of the Federal Constitution, and made applicable to the states by the Fourteenth Amendment has no application to thedistribution of hand-bills on the streets for purely commercial advertising. Valentine v. Chrestensen, 316 U. S. 52, 54; 86 L. Ed. 1262. Jamison v. Texas, 318 U. S. 413, 417; 87 L. Ed. 869. Murdock v. Pennsylvania, 319 U. S. 105, 108; 87 L. Ed. 1292; 146 A. L. R.

The rule as regards purely commercial advertising is the same under Article 1, Section 9 of the California Constitution. In re Porterfield, 28 Cal. 2d 91,101; 167 A. L. R. 675.

A City ordinance making it unlawful to deposit advertising matter in or on motor vehicles parked on streets does not violate the constitutional guaranties of freedom of speech and of thepress, and does not constitute an arbitrary and unreasonable restraint on the conduct of a lawful business. People v. Uffindell 90 Cal. App. 2d Supp. 881. (ordinance reading “it shall be unlawful to deposit . . . in or on any motor vehicle parked on any street in the City of San Diego . . . any . .. advertising matter.”)

SEC. 28.01.1. HAND-BILLS AND TIP SHEETS – DISTRIBUTION. (Amended by Ord. No. 159,222, Eff. 9/3/84.)

(a) No person shall sell to, or distribute among, pedestrians, or persons in vehicles, any tip sheet, on any street or sidewalk, or in any park.

(b) No person shall cast, throw or deposit any tip sheet or hand-bill onto any street, sidewalk or park.

(c) No person shall distribute any hand-bill on public property:

(1) on the roadway, center divider or median of a street;

(2) to any person in an unparked vehicle;

(3) within ten feet of an entrance to a building;

(4) within ten feet of a marked or unmarked crosswalk;

(5) along or within ten feet of a construction fence; or

(6) on any portion of a driveway.

(d) No person who distributes any hand-bill on a public sidewalk or in a public park shall neglect to remove any hand-bill which is distributed by thatperson or another person also distributing copies of the same hand-bill, which hand-bill is then thrown, cast or deposited on the ground by another person within onehundred feet from the location of the particular distribution by said person.

SEC. 28.02. HAND-BILLS – PERMISSION PREMISES.

No person shall distribute, deposit, throw, place or attach any hand-bill to, in or upon any porch, yard, steps or mail-box located upon any premises not in thepossession of or under the control of the person distributing the said hand-bill, which premises has posted thereon in a conspicuous place, a sign of at least twelveinches in area bearing the works, “No Advertising,” unless the person distributing the hand-bills has first received the written permission of the person occupying orhaving possession of such premises authorizing him so to do.

Advertising is a lawful occupation and as such is a property right secured by the constitutional guarantees against deprivation of property without due process of law, however suchoccupation may be regulated by forbidding its distribution in places where it might result in the littering of public places. People v. St. John, 108 Cal. App. 779.

The ordinance may lawfully prohibit the acts described therein. People v. Lockett, CR A 1145.

SEC. 28.03. HAND-BILLS, SIGNS – BUILDINGS PERMISSION.

No person shall paint, mark or write on or post or otherwise affix or attach any hand-bill or sign to or upon any building, wall or part thereof, or upon anyprivate property without the consent of the owner, agent or occupant thereof.

SEC. 28.04. HAND-BILLS, SIGNS – PUBLIC PLACES AND OBJECTS.

(a) No person shall paint, mark or write on, or post or otherwise affix, any hand-bill or sign to or upon any sidewalk, crosswalk, curb, curbstone, streetlamp post, hydrant, tree, shrub, tree stake or guard, railroad trestle, electric light or power or telephone or telegraph or trolley wire pole, or wire appurtenant thereofor upon any fixture of the fire alarm or police telegraph system or upon any lighting system, public bridge, drinking fountain, life buoy, life preserver, life boat, orother life saving equipment, street sign or traffic sign.

The prohibition of the ordinance applies to telephone poles owned by public utilities as well as poles owned by some political entity, and is a valid exercise of the police power. People v. Kaplan, CR A 1623.

(b) Nothing in this section contained shall apply to the installation of terrazo sidewalks or sidewalks of similar construction, sidewalks permanentlycolored by an admixture in the material of which the same are constructed, and for which the Board of Public Works has granted a written permit.

(c) Removal of Signs – Costs and Penalties. (Amended by Ord. No. 180,998, Eff. 1/4/10.)

(1) Any hand-bill or sign found posted or otherwise affixed upon any public or utility property contrary to the provisions of this section may beremoved by any company, utility, organization, or individual owning or responsible for maintaining that property, the Police Department or the Departmentof Public Works. The person responsible for any such illegal posting shall be liable for an administrative penalty and for the cost incurred in the removalthereof, and the Department of Public Works is authorized to effect the collection of said administrative penalty and costs incurred by the City of LosAngeles. The first violation of Subsection (a) in a calendar year is subject to an administrative monetary penalty not to exceed $100.00. Subsequentviolations in the same calendar year will result in a second penalty not to exceed $250.00. The penalty for the third administrative violation in a calendaryear is $500.00. More than three administrative fines in one calendar year shall result in the violation being charged as a misdemeanor in Superior Courtand subject to all penalties applicable to criminal violations. The Bureau of Street Services is authorized assess a processing fee established by the Board ofPublic Works, subject to the approval of the City Council for all citations with an administrative monetary penalty.

(2) For purposes of this subsection, there shall be a presumption that:

(i) the real estate agent, broker, brokerage firm or other person whose name or telephone number appears on the hand-bill or sign is theperson responsible for posting a hand-bill or sign advertising property for sale, lease or rent;

(ii) the candidate seeking office is the person responsible for posting a hand-bill or sign promoting the candidate for public office;

(iii) the owner, or lessee if the property is leased, of property used for a yard or garage sale is the person responsible for posting a hand-billor sign advertising a yard or garage sale;

(iv) the owner, or lessee if the property is leased, of property used for a commercial activity or event is the person responsible for posting ahand-bill or sign advertising the subject commercial activity or event;

(v) the person whose name, telephone number or address appears as the sponsor for a sporting event, concert, theatrical performance, orsimilar activity or event is the person responsible for posting a hand-bill or sign advertising the subject activity or event; and;

(vi) the person whose name, telephone number or address appears as the person to contact on any hand-bill or sign posted is the personresponsible for having posted the same.

For purposes of this subsection, the person presumed to be responsible for posting a hand-bill or sign on public or utility property may rebut suchpresumption by declaring under penalty of perjury or swearing under oath that the person did not cause, authorize, allow or permit the posting of the hand-bill or sign on public or utility property. (3) With the concurrence of the City Administrative Officer, the Board of Public Works shall determine the verifiable costs to the City of LosAngeles incurred in removing hand-bills and signs pursuant to this section. Such costs shall include, but not be limited to, direct labor, material andequipment costs, as well as departmental and general City overhead costs attributable to the removal of signs. Prior to the beginning of each fiscal year, theBoard shall adopt a schedule of charges which persons responsible for the illegal posting of hand-bills and signs are required to pay pursuant to thissubsection, based on those costs. The schedule of charges shall be subject to approval by the City Council.

(4) All administrative penalties collected pursuant to this section shall be used for enforcement activities by the Bureau of Street Services,Investigation and Enforcement Division.

(5) Persons billed for the costs and penalties of removing hand-bills or signs may appeal such costs and charges to the Board of Public Works inaccordance with rules adopted by the Board.

(d) Nothing in this section shall apply to the installation of a metal plaque or plate or individual letters or figures in a sidewalk commemorating anhistorical, cultural, or artistic event, location or personality for which the Board of Public Works, with the approval of the City Council, has granted a writtenpermit. (Amended by Ord. No. 109,896, Eff. 9/28/57.)

(e) Nothing in this section shall apply to the painting of house numbers upon curbs done under permits issued by the Board of Public Works under and inaccordance with the provisions of Section 62.96 of this Code. (Added by Ord. No. 122,905, Eff. 10/26/62.)

(f) Nothing in this section shall prohibit the installation of signs on street lighting posts provided the sign is a part of a program sponsored by a CityDepartment having specific responsibility for public safety and such signs and locations are approved by the Department of Public Works and are installed andmaintained as authorized in Section 80.07 of this Code. Any fees previously paid for such installation shall be refunded upon application to the Department ofTransportation for such refund by the person or persons who made the payment to the City. Such person or persons shall declare under penalty of perjury that anymoney received by he, she, or them, shall, in turn, be paid to those persons who provided funds to the applicant to make such payment to the City and further that ifthe applicant is not able, for any reason, to make such reimbursement to any such person, the applicant, shall return, within 60 days said respective sum to the City.(Amended by Ord. No. 158,469, Eff. 12/23/83.)

(g) (Added by Ord. No. 173,343, Eff. 7/15/00.) Nothing in this section shall prohibit the installation of signs on street lighting posts relating to theoperation of the street lighting system.

SEC. 28.05. HAND-BILLS, SIGNS – BEACH OR TIDELAND OF CITY – EXCEPTION.

No person shall paint, mark or write on or post, or otherwise affix or attach any hand-bill or sign to or on any land belonging to this City fronting on thePacific Ocean or upon any tideland or submerged lands granted to this City by the State or heretofore or hereafter acquired by this City by annexation orconsolidation.

Provided, however, that nothing in this section contained shall be deemed or construed to prohibit any person lawfully occupying any portion of any tideland orsubmerged land by virtue of any lease or permit from placing upon such portion thereof advertising or advertisements pertaining exclusively to the businessconducted or maintained upon such portion thereof pursuant to said lease or permit.

SEC. 28.08. HAND-BILLS – NAME AND ADDRESS OF DISTRIBUTOR.

It shall be unlawful for any person to post or otherwise affix on public property, or distribute in any public place any hand-bills, placard, poster, pamphlet, orother printed matter that does not bear upon the face thereof the name and address of the person who caused the same to be distributed. This section does not in anyway affect the provisions of Section 28.01.1 of the Los Angeles Municipal Code.

SEC. 28.09. ADVERTISING – GOODS AS DEALERS – EXCEPTION.

No person engaged in the business of selling goods, wares or merchandise shall advertise the sale of said goods, wares or merchandise, or any part thereof, inany newspaper, periodical, magazine or in or upon any advertising medium unless it shall be stated in the advertisement of the sale of said goods, wares ormerchandise, clearly and unequivocally that said person, advertising the sale of said goods, wares or merchandise, is a dealer of the same, or unless it is stated insaid advertisement that said person, is engaged in the business of selling said goods, wares or merchandise or unless the word “dealer” is used conspicuously insaid advertisement; provided, however, that the advertisement of the sale of any goods, wares or merchandise in any advertising medium, in such form or with suchdisplay as to prices, quality and description of said goods, wares or merchandise and the character of the business engaged in as to make it plainly apparent that suchperson thus advertising the sale of said goods, wares or merchandise, is actually engaged in such sale as a business, shall be deemed a sufficient compliance withthe terms of this section.

SEC. 28.10. BALLOON – USE FOR ADVERTISING.

No person shall release or allow the release of any free balloon, toy balloon or any group of the same which has attached thereto any substance, matter ormaterial used, designated or intended for any advertising purpose.

SEC. 28.11. CAPTIVE BALLOONS AND SIMILAR DEVICES. (Amended by Ord. No. 173,944, Eff. 6/18/01.)

It shall be unlawful to permit a balloon or similar device which floats in the air and is restrained, attached or held in place by a cord, rope, cable or similarmeans, to float, ascend, rise or remain aloft at a vertical height of five feet or more above the surface of the ground measured to the highest point of the balloon orsimilar device.

SEC. 28.12. AIRPLANES – LOUD SPEAKERS ON.

No person, while flying any type of aircraft over this City, shall operate thereon any loud speaker, siren or other device, except the unmuffled exhaust of eachaircraft, which makes any noise or sound sufficiently loud to attract attention of persons on the ground; provided that the Board of Police Commissioners may issuea temporary permit for a period of time not to exceed twenty-four hours to persons to operate a loud speaker, siren or other noise making device on aircraft, if theBoard determines that such operation may be necessary in connection with any important celebration in this City.

SEC. 28.13. ANIMALS – USE FOR ADVERTISING.

No person shall lead, ride or drive upon any street or sidewalk any animal upon which is carried or to which is attached any advertising banner, flag, board,placard, sign, transparency or other device commanding, announcing, publishing or calling attention to any goods, wares or merchandise or any place of business orentertainment or any business, occupation, show, exhibition, entertainment or event.

SEC. 28.15. SIGNS – LIQUOR ESTABLISHMENTS.

(a) No person shall place, maintain, suspend, affix or attach any banner, flag, marquee, canopy or awning bearing any words or figures referring in anymanner to any malt, vinous, fermented or spiritous liquors to or upon any building or premises occupied by any place of business where food is served or preparedfor consumption on the premises where malt, vinous, fermented or spiritous liquor or any admixture thereof is sold, offered for sale, and served and consumed onsaid premises.

Provided that signs, other than banners, flags, marquees, canopies or awnings, referring to malt, vinous, fermented or spiritous liquor may be placed or attachedto or on the front, sides or back of any such building or premises, providing that no area of the building upon which such sign is maintained abuts or faces propertyused for residential purposes, and further provided that no such sign shall be affixed, attached or painted so as to conceal or obstruct the clear view through thedoorway or windows of any such premises occupied as aforesaid.

(b) No person shall place, maintain, affix or attach on, in, over or upon any window on any premises or building mentioned in this section, any substancewhich in any way obstructs the clear vision or view through any door or window of the interior of such place from the exterior thereof above a line parallel to thelower sill thereof and distant four feet from the highest point of the surface of the sidewalk adjacent to and immediately in front in such building and premises.Provided that the provisions of this subsection shall not apply to any bona fide permanently constructed window display, shelving or housing which does notsubstantially obstruct the clear vision or view through any such window of the interior of such place from the exterior thereof.

The provisions of this subsection with respect to obscuring windows at places where alcoholic beverages are sold may not be enforceable, as it had been held that a municipality may notby ordinance prohibit maintenance of a public eating place where alcoholic beverages are served because it had a window so obscured that one may not look into said place from the street.Such matters are exclusively within the jurisdiction of the State Board of Equalization. People v. Fine, CR AP 2521 Citing: People v. Leaf, CR AP 2337; People v. Steponovich, CR AP 2183; ART. XX, Sec. 22, Constitution of the State of California.

SEC. 28.16. SIGNS – GASOLINE PRICES – POSTING. (Added by Ord. No. 145,634, Eff. 3/8/74.)

(a) Every person, firm, partnership, association, trustee or corporation which owns, operates, manages, leases or rents a gasoline service station or otherfacility offered for sale, selling or otherwise dispensing gasoline or other motor vehicle fuel to the public from such a facility abutting or adjacent to a street orhighway shall post or cause to be posted or displayed and maintain at said premises at least one sign, banner or other advertising medium which is clearly visiblefrom all traffic lanes in each direction on such street or highway.

Each said sign, banner or advertising medium shall be readable from said traffic lanes and shall indicate thereon the actual price per gallon, including all taxes,at which each grade of gasoline or other motor vehicle fuel is currently being offered for sale, sold or otherwise dispensed, if at all, at said facility on said date.

(b) No person, firm, partnership, association, trustee or corporation which owns, operates, manages, leases or rents a gasoline service station or otherfacility offered for sale, selling or otherwise dispensing gasoline or other motor vehicle fuel to the public shall advertise, either in connection with any signs,banners or other advertising medium utilized to satisfy the requirements of this section or otherwise, the price of any grade of gasoline or other motor vehicle fuelwhich is not immediately available to be sold or dispensed to the public at said premises.

(c) Each sign, banner or other advertising medium posted, displayed or maintained pursuant to the requirements of this section shall not be inconsistentwith the provisions of Article 8, Chapter 7 of Division 8 (Sections 20880 et seq.) of the State of California Business and Professions Code.

SEC. 28.16.1. SIGNS – GASOLINE SALES – VOLUME. (Amended by Ord. No. 152,387, Eff. 5/17/79.)

(a) Every person, firm, partnership, association, trustee, or corporation which owns, operates, manages, leases or rents a gasoline service station or otherfacility offering for sale, selling, or otherwise dispensing gasoline or other motor vehicle fuel to the public from such a facility abutting or adjacent to a street orhighway shall post, or cause to be posted or displayed, and maintain and shall keep current at the premises from which said retailer offers sale, sells or otherwisedispenses gasoline or other motor vehicle fuel, at least one sign, banner or other advertising medium which is clearly visible from all traffic lanes in each directionon such street or highway.

Each said sign, banner or other advertising medium shall be readable from said traffic lanes and shall accurately indicate thereon the minimum and maximumlimits, if any, of gasoline or other motor vehicle fuel which will be sold thereat to any one purchaser at any one time for use in a motor vehicle and shall further setforth the hours and days said service facility will be open to the public for said purposes.

No changes in such availability of gasoline or other motor vehicle fuel shall be made with respect to the hours or days the facility will be open as aboveprovided, or as to maximum or minimum limits or amounts to be sold, without such change or changes being first shown on such posted sign, banner or advertisingmedium.

(b) Each sign, banner or other advertising medium posted, displayed or maintained pursuant to requirements of this section shall not be inconsistent withthe provisions of Article 8 of Chapter 7 of Division 8 (Sections 20880, et seq.) of the State of California Business and Professions Code.

SEC. 28.17. SIGNS – GASOLINE PRICES – UNIFORMITY.

No person shall keep, maintain or display on the premises of any motor vehicle service station, motor vehicle garage, gasoline service station or filling station,any sign, banner, streamer or card, or other advertising medium indicating or showing the price of gasoline or other motor vehicle fuel sold, offered for sale oradvertised for sale, unless the price per gallon, including all taxes, is quoted or shown on the sign, banner, streamer, card or other advertising medium, together withthe brand name or trade name of such gasoline or other motor vehicle fuel sold, offered for sale or advertised for sale, from such premises, provided, that if thegasoline or other motor vehicle fuel sold, offered for sale or advertised for sale is not sold under any trade name or brand name, then the same must be designatedas “No Brand.”

Each and all letters, words, figures, numerals used, placed or indicated on any such sign, banner, streamer, or other advertising medium shall be uniform insize, provided that the provisions of this section shall not apply to signs required to be placed on pumps or other gasoline or motor vehicle fuel dispensing apparatusreferred to in Section 28.16.

SEC. 28.20. ADVERTISING – KOSHER MEAT PRODUCTS. (Added by Ord. No. 86,898.)

(a) Definitions:

1. Kosher: this term is used herein as defined in Section 383b of the Penal Code of California;

2. Kosher Shop: any place of business where meat, meat products or any foodstuffs are sold, and where, or in connection with which, the word“Kosher” in English or any other language or any word or expression of similar import or effect, or any six pointed star, or any other advertisement, token,symbol or representation calculated to indicate that Kosher products are sold therein, is used or displayed; any place of business where oral representationsare made, expressly or by implication or insinuation, that Kosher products are there handled; and any place of business advertised as handling Kosherproducts, or advertised in a manner calculated to indicate that Kosher products are there available.

(b) Sale of Non-Kosher Products Prohibited – When. It shall be a misdemeanor for any person who operates any Kosher shop to sell, offer for sale, ordisplay therein any non-Kosher meat, meat products or food products containing meat, unless all such non-Kosher articles are kept in one or more display cases,vessels or containers which are physically separated from those containing Kosher articles, and which are clearly marked and identified as required by Section 383bof the Penal Code.

(c) It shall be a misdemeanor for any person who operates a Kosher shop, or who makes any sale therein, to sell any non-Kosher meat or meat productsunless at the time of such sale he informs the purchaser that the article is not Kosher. Provided, however, that the requirement of this subsection shall be deemedcomplied with if the package or wrapper enclosing the non-Kosher article sold has affixed thereto, or printed thereon, so as to be plainly visible to the purchaser atthe time of the sale, the word “non-Kosher” in letters of a stroke at least one inch high and at least one-eighth of an inch wide, together with the equivalent thereofin clearly legible English or any other language.

ARTICLE 9REPOSSESSION OF MOTOR VEHICLES – PERMIT REQUIREMENTS

Section29.02 Auto Wreckers – Notification Required.

SEC. 29.02. AUTO WRECKERS – NOTIFICATION REQUIRED.

Any Automobile Wrecker licensed by the State of California who obtains actual possession as a transferee of a vehicle which is subject to registration underthe California Vehicle Code for the purpose of wrecking or dismantling the vehicle shall forward, within 24 hours, notification of acquiring such vehicle to theRecords and Identification Division of the Los Angeles Police Department on a form specified by the Los Angeles Police Department. (Added by Ord. No.122,360, Eff. 8/9/62.)