Press Release
From: Valley VOTE
Valley Voters Organized Toward Empowerment
14622 Ventura Blvd. #424, Sherman Oaks, CA. 91403
Contact: Joe Vitti
Email: javittisr@cs.com [818] 366 1668

Valley VOTE Press Release

Date: 7/17/06

The Valley VOTE Board of Directors strongly supports the plans of the City Council’s Ad Hoc Committee on Tax Reform to resume their efforts to improve the fairness and reduce the complexity of the Los Angeles City Business Tax. Two specific components of the overall tax reform package that need modification were recommended by Valley VOTE in a White Paper in November 2004. They are:

1] Reduce the number of tax categories from 75 to fewer than 7.
2] Exempt from the gross receipts of the business those amounts that are paid to other subcontractors or other businesses.

”Reducing the tax categories from about 75 to 7 or fewer is important in achieving compliance,” noted Richard Bort, Chair of Valley VOTE's Finance Committee. He stated that "Achieving simplification by consolidating down to a handful of meaningful business tax categories will further encourage proper reporting and correct payment of business taxes that are rightfully due"

Exempting the unfair "pass-through receipts" from the calculation of the amount of business tax due should also significantly improve compliance. The receipts that are passed through to subcontractors will ultimately be taxed, provided that the prime business reports those receipts and the related subcontractor and its business license number to the city. An increase in total business tax revenues collected from all parties should result as compliance will improve with this more equitable business tax system.

Valley VOTE Mission Statement
Valley VOTE, a diverse coalition of San Fernando Valley residents, business people, educators, community activists, and organizations, is committed to exploring and implementing programs that empower the people of the San Fernando Valley and the City of Los Angeles, including opportunities to improve local governance, education and public participation on policy matters.

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