Council Extends Amnesty for Home Businesses

The Los Angeles City Council on Wednesday approved one of the remaining pieces of Councilwoman Laura Chick’s effort to regulate home-based businesses, extending an amnesty period for such businesses until Sept. 5.

In April, the council approved Chick’s motion to extend the amnesty from June 5 to Sept. 5. Wednesday’s vote made it official.

Los Angeles residents who work at home must register with the city, paying a $25 fee plus a tax that is assessed according to their type of work. In legalizing home businesses last November, city officials pointed out that home workers have always owed business taxes.

Chick, who represents the west San Fernando Valley, and others faced a backlash from constituents when they announced earlier that city tax law required collection of three years of back taxes for all newly registered businesses. The amnesty program was designed to offset the retroactive nature of the city tax code, Chick said.

When residents register with the city, officials will provide them with a tax forecast for the year to come, Chick said.

Before Wednesday’s vote was taken, Councilman Hal Bernson proposed extending the amnesty to the end of the year, but Chick maintained that Sept. 5 was a realistic cutoff.

If home business owners fail to register by Sept. 5, they may be subject to an audit to determine the amount of back taxes owed, Chick said.