Los Angeles is taking steps to provide financial relief to businesses impacted by the devastating January wildfires. On January 24, 2025, Los Angeles Mayor Karen Bass issued an Executive Order directing the city’s Office of Finance to draft an ordinance that would waive 2025 business taxes for business most impacted by the fires. This follows a prior announcement made on January 20, 2025 extending the filing deadline for Los Angeles City Business Tax renewals from February 28, 2025 to April 14, 2025 for businesses impacted by the fires.
What is the Los Angeles Business Tax Renewal?
All businesses registered with the City of Los Angeles must file an annual tax renewal, regardless of whether the business generated income that year. Filing on time ensures businesses avoid penalties and interest while also making them eligible for tax credits and incentives.
Typically, this renewal is due by the last last day of February, which would have been February 28, 2025 for this year. However, due to the wildfires, some businesses now have extra time to file.
Who Qualifies for the Business tax Renewal Extension?
To provide relief to businesses impacted by the fires, the city has automatically extended the business tax renewal deadline to April 14, 2025 for businesses located in the following zip codes:
Additionally, taxpayers with business locations outside of these zip codes may also qualify for an extension if their business was interrupted as a direct result of the fires. To apply, business owners must submit a written request, along with reasonable proof of the interruption, to the LA Office of Finance before February 28, 2025.
How to Apply:
What are the details regarding the proposed Los Angeles Business Tax relief?
Under Emergency Executive Order No. 3, the Mayor has directed the Office of Finance to draft an ordinance that, if approved, would waive the 2025 Los Angeles Business Tax for businesses directly impacted by the wildfires.
If enacted, the ordinance would eliminate the business tax for the 2025 tax year (based on 2024 receipts) for businesses that meet either of the following criteria:
As more details emerge about the proposed tax relief, we will share updates.
Have questions or need guidance?
If you have any questions regarding the status of these proposed changes, please contact your HCVT state and local tax partners for assistance.
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