April 17, 2014 

Councilmember Paul Krekorian
Chair, Budget and Finance Committee
Los Angeles City Council
200 N. Spring Street, Room 435
Los Angeles, CA 90012

RE:  AIA|LA Supports Gross-Receipts Business Tax Reform

Dear Councilmember Krekorian,

On behalf of the Los Angeles Chapter of the American Institute of Architects (AIA|LA) and the 3200+ design professionals that we represent, we are writing to share our strong support for Mayor Eric Garcetti’s budget proposal, which integrates a proactive first step to phase out the city’s gross receipts business tax.  In addition to initiating the 15-year phase-out as recommended by the Business Tax Advisory Committee (BTAC), AIA|LA offers several key reform recommendations that specifically address the business of leading an architectural practice within the City’s borders.

Attached, please find “Modifications to the Gross Receipts Business Tax” (PDF) for your review and consideration.

The City of Los Angeles offers its citizens an invaluable array of services, which must be sustainably funded well into the future to ensure the vibrancy and delight of Los Angeles as a world-class destination.  Therefore, to generate the revenue streams essential to providing city services, proactive measures must be acted upon by city leadership that will facilitate the growth in revenue for a more prosperous city.  One key mechanism to deliver that revenue growth is job creation, which will be a direct consequence of smartly phasing-out the business tax and reforming it so that the City isn’t unduly encouraging architects to locate their businesses elsewhere.

The City of Los Angeles’ gross receipts business tax continues to be a major disincentive for job creation and for businesses starting up in, relocating to, staying in and/or expanding in the City of Los Angeles.  

If Los Angeles is to remain a culturally vibrant, economically thriving community, the business tax needs to be gradually and responsibly phased out, as recommended by the BTAC and implemented in the Mayor’s 2014/ 2015 budget proposal.  

We trust that City leadership will take the bold step necessarily to reform and phase-out the business tax.

Very truly yours,


Andrea Cohen-Gehring, FAIA
President, AIA Los Angeles

Photo by: Fitzgerald Whitney / L.A. Times

Last updated: 17-Apr-2014 02:58 PM
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