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Effective January 1, 2002, gross receipts received from or charged to a related entity or entities are now exempt from business tax as provided by Ordinance No. 174086 that amends LAMC Section 21.00 (a). However, to qualify for the exemption from business tax, an 80% minimum ownership interest both in value and voting power is required. The only gross receipts exempt from business tax are those activities performed to a related entity or to a third party that is solely for the benefit of the related entity whether a direct or indirect relationship exists between them.
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