L.A. Ordinance Cuts Internet Taxes

The age of the internet business just got more affordable. As many Southern Californians know, the Santa Monica corridor is full of dot-coms working hard to stay afloat in the new recession. Los Angeles Mayor Anthony Villaraigosa signed a measure to cut business taxes for Internet-based firms, many of which last year saw their tax rate jump from the lowest in the city to the highest.

Villaraigosa signed the ordinance at the Westside Internet firm Shopzilla. Many dotcoms threatened to move if tax issues were not addressed. Under the new classification, dotcoms were placed in the “business and professions” category, which has a tax rate of $5.07 per $1,000 of gross receipts. Godo to keep in mind when starting up an American dotcom.