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City Business Gross Receipts Tax / Virtually All Businesses Operating in the City / Ordinance Initiative Petition / Certification of Sufficiency

Council File 26-1100-S7

Introduced
2026-03-25
Last changed
2026-05-15
Status
open
Expires
2028-05-13
Initiated by
City Clerk
References
City Attorney Report: R26-0188; R26-0289City Administrative Officer Report: 0220-06397-0000

Brief

This file documents the City Clerk's certification that an ordinance initiative petition—which would impose a gross receipts tax on virtually all businesses operating in Los Angeles—met the signature requirement to advance. The City Council voted 15-0 on May 13, 2026 to adopt two motions (by Harris-Dawson and others) related to the certification. The file was transmitted to the Mayor on May 15, 2026, with a deadline for mayoral action of May 26, 2026. The matter remains open pending the Mayor's response.

Full summary

This file tracks a citizen-initiated ordinance that proposes to repeal the existing Los Angeles City Business Gross Receipts Tax on virtually all businesses operating within city limits. After the City Clerk certified that the petition gathered sufficient signatures to qualify, the Council was required by state law to choose among several paths: adopt the initiative as-is, reject it, or place it on the ballot. The Council chose to place the measure on the ballot without alteration. On May 13, 2026, Council Member Marqueece Harris-Dawson introduced Motion 19A, which directed the City to adopt an election ordinance and ballot resolution submitting the proposed initiative to voters at the City's General Municipal Election on November 3, 2026. That motion also amended the ballot question language to disclose that the measure would result in an estimated annual decrease in city tax revenues of approximately $860 million — a figure drawn from the City Administrative Officer's fiscal analysis submitted May 6, 2026. A companion motion by Harris-Dawson and Council Member Tim McOsker directed the Council to adopt a revised ordinance drafted by the City Attorney on May 13 to implement that ballot question amendment. Both motions passed 15-0. The legislative path proceeded in two stages. On April 15, 2026, the Council had first adopted the certification and referred the initiative to the City Administrative Officer for a fiscal impact report — a step moved by Harris-Dawson and seconded by Council Member Katy Yaroslavsky, conditioned on the Council taking a final disposition within 30 days. That condition was met when the Council voted on May 13 to place the measure on the November 2026 ballot. The Rules, Elections and Intergovernmental Relations Committee waived formal consideration at multiple points, allowing the matter to move directly to the full Council. The file was transmitted to the Mayor on May 15, 2026, with a deadline for mayoral action of May 26, 2026. If the Mayor acts or the deadline passes without a veto, the measure will be placed before voters in November 2026, where a yes vote would eliminate a tax that the CAO estimates generates roughly $860 million annually for the City.

Activity (16)

  • 2026-05-15 City Clerk transmitted file to Mayor. Last day for Mayor to act is May 26, 2026.
  • 2026-05-13 Council adopted Motion 19A (Harris-Dawson - Blumenfield) and Motion (Harris-Dawson - McOsker), subject to reconsideration, pursuant to Council Rule 51.
  • 2026-05-13 City Attorney document(s) referred to Council.
  • 2026-05-13 Document submitted by City Attorney, dated May 13, 2026.
  • 2026-05-08 City Clerk scheduled item for Council on May 13, 2026.
  • 2026-05-07 City Administrative Officer document(s) referred to Council.
  • 2026-05-06 Document submitted by City Administrative Officer, dated May 6, 2026.
  • 2026-04-20 Council action final.
  • 2026-04-15 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
  • 2026-04-10 City Clerk scheduled item for Council on April 15, 2026.
  • 2026-04-10 Rules, Elections and Intergovernmental Relations Committee waived consideration of item .
  • 2026-04-09 City Attorney document(s) referred to Rules, Elections and Intergovernmental Relations Committee.
  • 2026-04-09 Document submitted by City Attorney, dated April 9, 2026.
  • 2026-03-27 Rules, Elections and Intergovernmental Relations Committee waived consideration of item .
  • 2026-03-27 City Clerk document(s) referred to Rules, Elections and Intergovernmental Relations Committee.
  • 2026-03-26 Document submitted by City Clerk, dated March 26, 2026.

Documents (18)

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