Council wises up on Internet

Internet companies are not the same as professional services companies, a distinction that seems obvious to most everyone except city of L.A. tax collectors., and other Los Angeles-based Internet companies threatened to leave when their business tax category was reclassified to professional services. That's a hike of almost $5 per $1,000 of gross receipts - and for companies that the city is supposedly trying to retain. The council voted today to create a new, lower business tax category specifically for Internet companies. Of course, establishing a lower tax category will result in the loss of several million dollars in tax revenue. (Business Journal)

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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