‘Open for Business': Los Angeles Pioneers Local Tax Reforms in Challenging Economic Environment

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

The recession that began in 2007 caused many cities to face conflicting pressures: a need to create jobs and a healthy business climate, and a decline in revenues that put their budgets seriously out of balance. In one such city, Los Angeles, the conflict rejuvenated efforts to reform the Los Angeles Business Tax (LABT), including a push to repeal the levy. In this article, authors from Deloitte Tax LLP recount the history of the LABT as a framework for considering future tax reform efforts.