Is your charitable organization paying the Los Angeles business tax? As a result of state legislation, the City of Los Angeles amended its municipal code to authorize the Director of Finance to issue a Tax Exempt Registration Certificate to charitable, non-profit or religious institutions. If your organization is exempt under Internal Revenue Code Section 501 or under California Revenue and Taxation Code Section 23701d, you should complete the Business Tax and/or Carnival Police Permit Exemption Application (Form 501.1) and include a copy of the tax determination letters. The Application also requires a description of the business or activity for which exemption is requested.
What should be done if your nonprofit organization has been paying taxes but has been recognized as tax-exempt by the IRS and/or FTB? Your organization should apply for a refund under Los Angeles Municipal Code Section 21.07. This section provides for a refund of overpayment when the refund claim has been filed within a period of one year from the date of the claimed overpayment. The refund claim should be filed using the Claim for Refund Application (Form 96.006). Additionally, you need to apply for exemption from business taxes mentioned above.
For more information, look at the website for City of Los Angeles Office of Finance: see the following link where you can find additional information and forms.
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