New businesses that relocate to Los Angeles will continue to be exempt from city business taxes, under a measure signed by Mayor Antonio Villaraigosa today.
The mayor signed the ordinance at an architectural design firm that took advantage of the tax break to open an office in L.A. Under the 2010 measure, companies get a pass on municipal business taxes for three years if they create jobs in the city.
“The New Business Tax Holiday is a key economic tool at our disposal to attract and incentivize firms to locate and start businesses in L.A.,” said Villaraigosa in prepared comments.
The mayor’s office released statistics that showed 516 new firms grossing $500,000 and above took advantage of the tax loophole in 2011, and 1,279 the next year. Companies that have relocated to Los Angeles and taken advantage of the tax holiday include Google, Beverly Hills BMW, Farmer’s Insurance, Blackline Software and Telscape Communications.
The mayor signed the extension in the offices of HKS, Inc., an architectural design firm that has 29 offices worldwide. A director of the firm said the L.A. tax holiday led his company to relocate to Westwood.
“The three-year business tax holiday offered by the City of Los Angeles is a a strong incentive that helps enhance our business goals,” said Scott Hunter. “We remain optimistic about the fundamentals of the Southern California economy…”
