The business property tax is for property over $100k. I don't think many offices have that much furniture. Also, it does not appear to be true that this tax is assessed on businesses outside of la county. Just how exactly are the figuring out who is driving "through" the county? They have to send you the assessment forms.
> The business property tax is for property over $100k. I don't think many offices have that much furniture.
No. It isn't. It applies above and below $100K. The rules are a little different on either side of that threshold.
> Also, it does not appear to be true that this tax is assessed on businesses outside of la county.
Well, then you know more than the tax assessor who visited me every year at my business and told me, almost verbatim, that if you do business in Los Angeles county or travel through the county to do business elsewhere, it doesn't matter where your home base might be, you have to pay this tax.
> Just how exactly are the figuring out who is driving "through" the county? They have to send you the assessment forms.
The way I learned of this tax, a couple of decades ago, is from a guy who knocked on my front door asking about a business next door. When I told him they were out at a conference, he asked me what my business was (we had no signage outside our industrial unit). When I told him, he said "Oh, yeah, I have you right here" as he opened a thick binder.
This guy was canvasing every single industrial center at the periphery of LA County to both assess and inform businesses they owed this tax. He was well trained. After identifying himself as working for LA county (showing ID, etc.) he asked stuff like "So, do you do business in LA County or are you just local out here". If you said "yes" to any number of his well-prepared questions out came an assessment form. He even tried to come into our facility to do an inventory. Non only was I not going to allow some random unannounced guy to come into our facility, we were doing a bunch of aerospace work that fell under ITAR regulations, NDA's, etc. You can't just walk random folks into your office when you do that kind of work. So, in what I am going to call a "third world style", he proposed an assessment value right there and then, in my lobby. I agreed and wrote the county a check.
F-ing thieves.
Think about it: Businesses in LA County have to perpetually pay taxes on their desks, chairs, tools, computers, tenant improvement (yes, that too!), SUPPLIES, etc. A perpetual tax on the damn chair you are sitting on. That's what it has come to. I don't understand why voters pass this crap and expect job creation, growth and the ability to compete with the likes of China.
100k is pretty easy to hit with 75-100 employees. 100 desks, chairs, and computers is going to be at least that much. hopefully you don't have meeting rooms, printers/copiers, a waiting area, a break room with fridge/microwave/coffee/table/chairs...
"businesses with personal property and fixtures that cost less than $100,000 are not required to file a Business Property Statement annually. Instead, a value is established based on an initial Business Property Statement filing or by an on-site appraisal. That value may be adjusted by subsequent annual on-site appraisals."
You pay this amount annually so long as you didn't buy anything new. They can show-up and do an on-site appraisal and get you if you under reported.
It doesn’t make it less ridiculous. It disincentivizes business creation in LA. Also, due to inflation $100k will be much less in a decade when small business owners will start getting hit by it.
