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Across-the-Board Rate Reduction

Effective January 1, 2006

This reform measure (LAMC Section 21.03.1) involves reducing all the gross receipts tax rates, each January 1st, by up to 4% per year depending upon the prior year’s business tax receipts. However, there will be no tax reduction for any year in which the net revenue increase from the prior year is less than one-percent (1%). Any net revenue percentage increase below one percent (1%) shall be carried over and added to next year’s percentage increase for purposes of calculating the rate reduction for that year. Rates would be reduced over time to a maximum total reduction of 15% if net revenue percentage increase conditions are met. Therefore, when the forecasted revenue thresholds are met, the rate reduction will be a minimum of 1% to a maximum of 4% per year but not exceeding a total of 15% for the life of the program. Only gross receipts classifications will be included in the rate reduction.

For 2008, the reduced percentage rate is 4.0%.

• 2008 Tax Rates [PDF, 1 page, 32 KB]
• 2007 Tax Rates [PDF, 2 pages, 59 KB]
• 2006 Tax Rates [PDF, 2 pages, 495 KB]
• 2005 Tax Rates [PDF, 2 pages, 26 KB]

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