Garcetti Signs Law Reducing Top Business Tax Rates

Businesses have long complained about the gross-receipts tax, both because its rates are higher than in other cities and because it’s a tax on top-line revenues, before operating expenses and other business costs are factored in. Several major business groups have called for the elimination of the tax altogether, a stance supported by a special city committee two years ago. The say dropping the tax would drive business investment in the city.