A business license tax is a tax that businesses pay annually, either based on a percentage of their gross revenues or as a flat tax, depending on business type.

Every business operating in Culver City is required to file a business license tax application before opening up shop and to pay the annual tax each year thereafter.

The following businesses and organizations are required to obtain a business tax certificate and any necessary permits; however, they are not required to pay a business tax: charitable organizations; parks, recreation & community services contractors; employees (whether on salary, commission, or other compensation basis); and homeowners’ associations.

As a part of the 2018-2023 Strategic Plan, City Council directed staff to assess the long-term financial stability of the City by reviewing existing sources of revenue. The business license tax was identified as one of the existing sources of revenues that should be reviewed for long-term financial stability.

Culver City’s business license tax has not been updated since 1965, and many of the categories for different business types are outdated or no longer applicable.

On June 13, 2022, City Council voted to place Measure BL on the November 8, 2022 general election ballot. If passed, Measure BL would generate approximately $10 million annually. That revenue would go into the City's General Fund to use for general City purposes, including for services like emergency response, addressing homelessness and maintaining parks.

Culver City’s business license tax rates are based on either gross receipts or a flat rate tax, depending on business type, and currently ranges from 0.1% to 0.3%:

Gross Receipts Tax Rates

• GRT-A – 0.1% or $1/$1,000
• GRT-B – 0.1% or $1/$1,000
• GRT-C – 0.3% or $3/$1,000
• Oil well operations tax rate – 1.8% or $18/$1,000
• Flat tax up to $720
• No tax exemption on gross receipts

View "Exhibit B" of the proposed ordinance for a list of business classifications.

Measure BL proposes updating Culver City's business license tax rates from the current range of 0.1% - 0.3% to a new range of 0.13% - 0.35%, based on either gross receipts or a flat rate tax. Tax rates will vary by business classification.

Gross Receipts Tax Rates

• GRT-A – 0.13% or $1.30/$1,000
• GRT-B – 0.15% or $1.50/$1,000
• GRT-C – 0.16% or $1.60/$1,000
• GRT-D – 0.20% or $2.00/$1,000
• GRT-E – 0.25% or $2.50/$1,000
• GRT-F – 0.30% or $3.00/$1,000
• GRT-G – 0.35% or $3.50/$1,000
• Oil well operations tax rate – 4.0% or $40/$1,000
• Flat tax up to $1,000
• Tax exemption on the first $200,000 in annual gross receipts for businesses whose tax rate is based on gross receipts
• Additional tax of 0.01% or $0.10/$1,000 on gross receipts more than $100 million

View "Exhibit B" of the proposed ordinance for a list of business classifications.

Culver City currently has approximately 10,300 active businesses. If voters approve Measure BL, approximately 6,000 businesses will no longer pay the annual business license tax, due to the $200,000 gross receipts exemption. Businesses whose annual gross receipts exceed $200,000 could pay a higher or lower business license tax, depending on their business type and gross receipts.

If voters approve Measure BL, approximately 6,000 businesses will no longer pay the annual business license tax, due to the $200,000 gross receipts exemption. Businesses whose annual gross receipts exceed $200,000 could pay a higher or lower business license tax, depending on their business type and gross receipts.

Business license tax revenue is a part of the General Fund and can be used for any general City purpose. If voters approve Measure BL, revenue from the measure could generate approximately $10 million annually (until ended by voters) and would require annual independent audits. The City could use this revenue for services such as emergency response, maintaining parks and addressing homelessness.

Yes, if voters approve Measure BL, approximately 6,000 businesses will no longer pay the annual business license tax, due to the tax exemption on the first $200,000 in annual gross receipts for businesses whose tax rate is based on gross receipts.

The existing exemption from the business license tax will continue to apply to the following businesses and organizations:

• Charitable Organizations
• Parks, Recreation & Community Services Contractors
• Employees
• Homeowners’ Associations

Measure BL is a "general tax," not a "special tax," and may be used for any general City purpose, such as emergency response, maintaining parks and addressing homelessness. General tax revenues are deposited into the City's General Fund. Because it is a general tax, Measure BL requires a simple majority voter approval ("50 percent plus one") to pass in the November 8, 2022 election.

Like other City revenues, business license tax revenue is subject to annual independent audits.

If approved, Measure BL would go into effect on April 1, 2023 for all new businesses. Businesses currently active in Culver City would not be impacted until the 2024 business license tax renewal period, which is due no later than February 2024.

Measure BL would remain in effect until ended by voters.

Here are some examples of how different business classifications may be affected by Measure BL:

• Retail/Restaurant businesses that generate gross receipts less than $600,000 a year would pay a lower tax or no tax. Retail/Restaurant businesses that generate gross receipts that total $600,000 or more a year would pay a higher tax under the proposed tax structure.
• Building Contractors that generate gross receipts less than $400,000 a year would pay a lower tax or no tax. Building Contractors that generate gross receipts that total $400,000 or more a year would pay a higher tax under the proposed tax structure.
• Apartment/Commercial Property Rentals that generate gross receipts less than $865,000 a year would pay a lower tax or no tax. Apartment/Commercial Property Rentals that generate gross receipts that total $865,000 or more a year would pay a higher tax under the proposed tax structure.
• Studios, motion picture/television/radio, that generate gross receipts less than $533,000 a year would pay a lower tax or no tax. Studios, motion picture/television/radio, that generate gross receipts that total $533,000 or more a year would pay a higher tax under the proposed tax structure.
• Medical and Professional Services that generate gross receipts less than $1,400,000 a year would pay a lower tax or no tax. Medical and Professional Services that generate gross receipts that total $1,400,000 or more a year would pay a higher tax under the proposed tax structure.
• Business & Administrative Office Services that generate gross receipts less than $300,000 a year would pay a lower tax or no tax. Business & Administrative Office Services that generate gross receipts that total $300,000 or more a year would pay a higher tax under the proposed tax structure.

To see how your business type is affected, view "Exhibit B" of the proposed ordinance for a list of business classifications.

Businesses can use the Business Tax Rate Calculator solely for the purpose of helping you estimate what your business tax rate could be if Measure BL is adopted by the voters. The calculator is being provided for your information and convenience and is not a binding statement of how much you would owe in business taxes if Measure BL is adopted by the voters.

If you experience any issues with the calculator or have questions regarding the estimated rate for your business, please email MeasureBL@CulverCity.org.

For more information on business classifications, view "Exhibit B" of the proposed ordinance.

To contact the City Manager’s Office:

(310) 253-6000 | MeasureBL@CulverCity.org

Llame a la Ciudad al (310) 253-6000 si necesita información en español.

The next City Council election is on November 8, 2022 for two city council seats and two ballot measures.

To vote on Measure BL in the City of Culver City, you need to register to vote by the October 24, 2022 deadline:

• Check your registration voter status on the State of California's Voter Status website.
• Go to the California Online Voter Registration webpage to register.
• Visit the Culver City Election Information webpage for more details about how to register to vote.

What You Need to Know About Measure BL

Business classifications list: View "Exhibit B" of the linked proposed ordinance

Impartial Analysis(PDF, 12MB)

Argument in Favor(PDF, 325KB)

Informational Flyer (August 2022)(PDF, 432KB)

Resolution 2022-R059 Calling the Election on November 8, 2022(PDF, 12MB) includes the text of both Measure VY (Exhibit A) and Measure BL (Exhibit B)

Several municipalities have passed similar measures and some states allow youth to vote in primaries at age 17 if they are 18 by the time of the election. Currently, 17-year-olds may pre-register to vote in California. Measure VY would allow additional residents to participate in municipal and school board elections.

If approved, Measure VY would only go into effect once the conditions established by the Measure are in place. The City Council and the CCUSD Board must each decide to do the following for their respective elections: (1) approve the budgetary funds to cover any additional election costs that may be incurred; (2) determine that logistical systems are in place to conduct the election; and (3) determine that including 16- and 17-year-olds in the election would not prevent consolidation of the election with the County election, which has occurred since 2020.

To contact the City Clerk's Office:

(310) 253-5851 | city.clerk@CulverCity.org

Llame a la Ciudad al (310) 253-5851 si necesita información en español.

The next City Council election is on November 8, 2022 for two city council seats and two ballot measures.

To vote on Measure VY in the City of Culver City, you need to register to vote by the October 24, 2022 deadline:

• Check your registration voter status on the State of California's Voter Status website.
• Go to the California Online Voter Registration webpage to register.
• Visit the Culver City Election Information webpage for more details about how to register to vote.

Measure CC: The Continuation of City Services Transactions and Use Tax

During the Special Election on March 3, 2020, Culver City residents can vote on Measure CC: the continuation of the current Measure Y half-cent sales tax. Currently, Measure Y will sunset in the year 2023. If approved by Culver City voters, Measure CC would extend Measure Y by 10 more years. The half-cent sales tax would continue to generate approximately $9.8 million dollars annually until 2033.

Measure CC would continue to provide revenue to maintain the current level of general city services and programs. Revenues would fund:

• Police, fire and public safety services
• 911 emergency response
• Programming for seniors and youth
• Maintenance of parks and recreation centers
• Street repairs and traffic improvements
• Emergency preparedness efforts and resources

The half-cent sales tax (in other words, 5 cents for every $10 spent) applies only to certain goods and services within Culver City, such as restaurants, bars, gasoline, and retail stores like clothing stores. It does not apply to most groceries or the services of a doctor, dentist or attorney. Visit the California Department of Tax and Fees Administration's website for full details about sales tax exemptions.

To vote on Measure CC in the March 3 special election, you need to be registered to vote by February 18:

• Check your registration voter status on the LA Vote website
• Or go to the LA Vote Voter Registration page to register
• Visit the Culver City Election Information page for more details about how to register to vote, VSAP Vote Centers, or to contact election officials

Culver CityBus offers multiple routes to voting centers. On Election Day (March 3, 2020), bus transit is free! Visit the Culver City Bus Maps, Bus Stops & Schedules webpage to find your route.

Llame a la Ciudad al (310) 253-5851 si necesita información en español.

 (PDF, 4MB)

Click/tap the image above to see a larger version(PDF, 4MB)

 (PDF, 4MB)

Click/tap the image above to read the "What you need to know about Measure CC" flyer(PDF, 4MB)

For more information about Measure CC:

City Manager’s Office
(310) 253-6000 | City.Manager@CulverCity.org

For more information about the March 3, 2020 election:

Visit the Election Information page or contact the City Clerk's Office
(310) 253-5851 | City.Clerk@CulverCity.org

Llame a la Ciudad al (310) 253-5851 si necesita información en Español

CC Counts

For more information about how to participate in Culver City elections, please visit the Culver City Election Information page.

On October 28, 2019, the City Council of the City of Culver City approved Resolution 2019-R082, calling and giving notice of the holding of a Special Municipal Election to be held in the City on Tuesday, March 3, 3020, for the submission of one (1) question to the voters relating to one (1) tax measure. 

General Municipal Election Information email updates

FULL MEASURE QUESTION: 

What's New in 2020

 In L.A. County, polling places have been upgraded to Vote Centers. Voters now have the option to cast a ballot in-person at ANY Vote Center in L.A. County.

Voters have up to 11 consecutive days to vote in-person at certain Vote Center countywide from February 22 - March 3, 2020.

Go to the full list of Vote Centers to determine when and where to vote. Search for a Vote Center near you!

Here is a full list of Vote Centers in Culver City:

Ballot Measure Texts, Arguments, and Impartial Analyses

• Full Ballot Measure Text(PDF, 163KB)
• Impartial Analyses(PDF, 230KB)
• Argument in Favor(PDF, 1MB)
• Argument Against(PDF, 1MB)
• Rebuttal to Argument Against Measure CC(PDF, 1MB)
• Rebuttal to Argument In Favor of Measure CC(PDF, 1011KB)

Official Notices and Resolutions

• Notice of Calling of the Special Municipal Election for a Ballot Measure(PDF, 90KB)
• Notice of Argument and Impartial Analysis Deadlines(PDF, 99KB)  (Argument Forms and Declaration Page)
• Resolution 2019-R081 - Declare Fiscal Emergency, Article 8 of CA Constitution(PDF, 1MB)
• Resolution 2019-R082 - Call and Give Notice of Special Municipal Election on Tuesday, March 3, 2020 for 1 Tax Measure Question(PDF, 4MB)
• Resolution 2019-R083 - Request Board of Supervisors of County of LA to Consolidate a Special Municipal Election on Tuesday, March 3, 2020(PDF, 4MB)
• Resolution 2019-R084 - Authorize City Council or Member to Submit Argument on 1 Tax Measure March 3, 2020(PDF, 4MB)
• Resolution 2019-R085 - File of Rebuttal Arguments for City Measures Submitted at Municipal Elections(PDF, 814KB)

Why is Measure CC on the March 2020 ballot?

During the budget process for Fiscal Year (FY) 2019/20, the City Council approved of staff’s recommendation to add Measure CC to the Special Election ballot. While the City currently has sufficient reserves in its General Fund, its 10-year financial forecast predicts that reserves will no longer meet the State General Fund Reserve requirement by FY 2023/24.

In order to ask Culver City residents to consider Measure CC during the March 3, 2020 Special Election, the City Council had to unanimously declare a fiscal emergency (Staff Report). This is a State requirement for placing a tax measure on a ballot other than a regularly-scheduled General Municipal Election.

Is Measure CC a new/additional tax?

No. Measure CC is a continuation of the current Measure Y half-cent sales tax. Currently, Measure Y will sunset in the year 2023. If approved by Culver City voters, Measure CC would extend Measure Y by 10 more years. In other words, the sales tax rate would stay the same as it is now. The half-cent sales tax would continue to generate approximately $9.8 million dollars annually until 2033.

What is the current sales tax rate in Culver City?

The statewide sales tax rate is 7.25% and Culver City only receives funds from 1.0% out of that 7.25%. Los Angeles County, the municipalities, and districts within the County are allowed to increase the sales tax an additional 3.00%, up to a combined total of 10.25%. Over 20 L.A. County cities, including Culver City, currently have a sales tax rate of 10.25%.

Why would a City want to have the maximum sales tax rate?

Between L.A. County and the City of Culver City, there can be an additional 3.00% of sales tax on top of the statewide sales tax rate of 7.25%. Los Angeles County has claimed 2.25% of the allowed 3.00% through its own sales tax measures. In 2012, Culver City voters approved Measure Y: a half-cent local sales tax that generates approximately $9.8 million dollars annually. In November 2018, Culver City voters approved Measure C: a quarter-cent sales tax that generates approximately $4.9 million dollars annually. Through Measure C and Measure Y, Culver City has claimed the remaining 0.75% of the allowed 3.00%.

All the revenue generated by that 0.75% of sales tax--approximately $14.7 million dollars annually--stays in Culver City. None of that revenue goes to the County or the State. If voters approve Measure CC, that $9.8 million in sales tax revenue will remain available for City services. If voters disapprove Measure CC, then the County could pass a new sales tax that might not have direct benefits to the community, and that would prevent the City from increasing its own sales tax because of the overall 10.25% cap imposed by state law.

 Is Measure CC a special tax or a general tax?

Measure CC is a general tax. It proposes to continue a one-half-percent transactions and use tax, commonly known as a sales tax, whose revenue would be deposited into the City's General Fund rather than go to the State or County. The revenue from this sales tax could be used for any valid general municipal purpose. As a general tax, Measure CC will require approval by a simple majority ("50 percent plus one") of those voting on the measure.

What are some of the financial challenges facing Culver City?

Maintenance and capital improvement projects for City infrastructure, spanning streets, roads, pavements, traffic safety projects and city buildings. Consultants at Faithful Gould found $38 million in necessary capital improvements at 25 City-owned structures over a 10-year period. Out of the $38 million, $20 million in improvements has been identified as immediate and $8.5 million were identified as Priority 1 Life/Public Safety items.

Capital and maintenance expenditures for network infrastructure, cloud-based software deployments and replacement of end-of-life hardware that streamline and facilitate efficient operations.

How will Measure CC appear on the March 2020 ballot?

"CONTINUATION OF CITY SERVICES TRANSACTIONS AND USE TAX. Shall the measure to maintain 911 emergency response services by training firefighters/police officers/paramedics; addressing homelessness; fixing potholes/streets; maintaining storm drains, parks, after-school programs, senior services, and other general fund services, by continuing the voter-approved one-half cent sales tax, generating approximately $9.8 million dollars annually, until March 31, 2033, requiring independent annual audits, all funds used locally, with no tax rate increase, be adopted."

What could happen if Measure CC does not pass?

Without the revenue that Measure CC would provide, the City would likely not be able to continue to provide the same level of service it provides today. That could involve cutbacks to essential services such as 911 emergency and paramedic response, police and fire protection, programming for parks, recreation and seniors, as well as fixing streets and potholes might be necessary.

How does Culver City use sales tax revenue?

Sales tax is the City’s largest tax revenue source in the City: currently, 28.5% of the General Fund revenue comes from sales tax. All the revenue generated by Culver City sales taxes goes into the City's General Fund, which can only be spent on City resources, services and programs, such as Police, Fire, Public Works and Parks. The Measure Y and Measure C sales taxes generate approximately $14.7 million dollars annually for the City's General Fund.

General Funds Revenues

A real estate transfer tax is a one-time fee imposed when a property is sold.

Transfer tax rules and rates vary widely by state, county and city. The County of Los Angeles assesses a Documentary Transfer Tax on the consideration or value of the interest or real property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds $100 at the rate of $0.55 per $500 or fraction part thereof. In addition, Culver City imposes an additional rate.

Either the seller or buyer may pay the real estate transfer tax during the real estate transfer or sale. If it is not paid, the seller and buyer are jointly and severally liable to the City for the payment of the tax.

The real estate transfer tax rate in Culver City was a flat 0.45% (or $4.50 per $1,000 valuation) applied to all real property transfers and sales, regardless of price paid.

Because the City’s General Fund relies heavily on revenues such as shopping, tourism, hotels, dining/entertainment and the economic success of local businesses, the City is faced with a proposed FY 2020/2021 budget deficit of $16 million. Despite efforts to drastically reduce General Fund expenditures, no one knows how long the impacts of COVID-19 will continue to plague the City; because of this uncertainty, the proposed revenue estimates for FY 2020/2021 could vary from actual revenues received.

The Culver City City Council voted to place Measure RE on the November 3, 2020 ballot as a revenue measure that could help towards closing the gap in the City's finances.

It is estimated that Measure RE would generate approximately $6,000,000 per year. That revenue would go into the City's General Fund to use for any valid municipal purpose. The General Fund can be used for any valid municipal purpose such as: maintaining essential services; deferred maintenance on streets, parks and facilities like the Veterans Memorial Building; addressing homelessness in Culver City; after-school and senior services; and economic recovery from the COVID-19 pandemic.

Measure RE establishes a marginal tax rate with four brackets, based on sales price or value, for the City's real estate transfer tax:

1) 0.45% on amounts of $1,499,999 or less. (Same as current rate)
2) 1.5% on amounts from $1,500,000 to $2,999,999.
3) 3.0% on amounts from $3,000,000 to $9,999,999.
4) 4.0% on amounts $10,000,000 and above.

A “marginal” tax rate means each bracket of a transaction is taxed at a different rate. For example, on a sale of $11,000,000, the first $1,499,999 would be taxed at the 0.45% first bracket rate. Next, the amount from $1,500,000 to $2,999,999 would be taxed at the 1.5% second bracket rate. The amount from $3,000,000 to $9,999,999 would be taxed at the 3% third bracket rate. Then, any amount from $10,000,000 and over would be taxed at the 4% fourth bracket rate. The amount of tax for each sales price bracket would be added together for the total tax due.

• With the voter approval of Measure RE, approximately 70% of property sales remain at the current 0.45% rate because their property sale price is under $1,500,000. (In calendar year 2019, approximately 73% of all property sales in Culver City were under $1.5 million.) Therefore, Measure RE would affect approximately 30% of all property sales, mostly luxury and commercial properties.

• Even if Measure RE passes, the 0.45% flat rate would still apply for:

• • Property sales under $1,500,000,

  • Transfers or sales of 100% of deed-restricted affordable housing, and

  • The first transfer of newly-constructed multi-family housing.

• If approved, Measure RE would adjust the thresholds for the four tax rate brackets every five years, based on the Consumer Price Index, so that as prices adjust with inflation, properties would be taxed at sale at the current rates. The tax rates (0.45%, 1.5%, 3.0%, and 4.0%) will stay the same over time.

Yes, Culver City's real estate transfer tax applies to all property sales, including residential and commercial.

Property conveyed by inheritance may be exempt from the real estate transfer tax. See the County of Los Angeles's "Notice of Exempt Transactions Under the Documentary Transfer Tax" document for a list of more exemptions. You may also contact the County Recorder's Office staff at (562) 462-2125 if you have any further questions about exemptions.

Measure RE is a "general tax," not a "special tax," and may be used for any valid municipal purpose. General tax revenues are deposited into the City's General Fund and do not go to the County or State. Because it is a general tax, Measure RE requires a simple majority voter approval ("50 percent plus one") to pass in the November 3, 2020 election.

Like other City revenues, real estate transfer tax revenue is subject to annual independent audits, ensuring full accountability and transparency.

Measure RE goes into effect on April 1, 2021.  This tax will be collected by the County of Los Angeles.