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Other Exemptions

Major Exempt Business Activities

  • Airlines-passenger/ interstate air freight for businesses that deal in air commerce, which includes the transportation of passengers or property only
  • Constitutionally exempt businesses, such as state government institutions 
  • State colleges and state universities
  • Court reporting/transcribing services performed under the control of a court of competent jurisdiction are treated like employees of the court
  • Non-profit businesses that qualify for 501 C3 exemptions with the Federal and State governments
  • Exemptions under LAMC Section 21.194, Transporting Persons For Hire:
    • Charter Party Limousines where the business address must be out of the City of Los Angeles (vehicle must be a limousine or luxury sedan only, seating capacity of no more than nine (9) including the driver)
    • Taxicabs-must have a franchise granted by the City Department of Transportation
    • Persons operating vehicles that meet all of the following:
      1. Operated exclusively between fixed termini or over regular routes in passenger stage operations
      2. Operated as indicated above under certificate issued by the Public Utilities Commission, AND
      3. Operation has been issued a certificate of public convenience and necessity by the Interstate Commerce Commission
  • Exemption under LAMC Section 21.195, Trucking and Hauling for the following:
    • Persons in the business as for hire motor carrier of property required to pay a fee to the State under the Household Goods Carriers Uniform Business License Tax Act or the Motor Carriers of Property Uniform Fee Act
  • Financial Institutions (Banks, Savings/Loans, etc.) for which “in lieu” taxes are paid to the State of California
  • Credit Unions
  • Governmental Agencies while carrying out governmental affairs
  • Insurance agents receiving a notice of appointment from insurance companies that pay “in lieu” taxes to the State of California (does not include insurance brokers)
  • Insurers – activities for which “in lieu” taxes are paid to the State of California
  • No nexus businesses – businesses with a physical presence within the City of Los Angeles limited to six (6) or less days per calendar year
  • Notaries public
  • Persons who rent three (3) or fewer residential rental units
  • Real estate agent (does not include real estate broker) - exemption under LAMC Section 21.190
  • Religious leaders in their religious capacity
  • Residential care facility for the elderly, which serves six or fewer residents
  • Small family day care home, which serves eight or fewer children
  • Licensed bail bond agents/companies

For additional information on any of these exemptions, please contact us.