San Francisco and Los Angeles, among other localities, impose a variety of taxes on businesses located in those cities or doing business there. There are many complexities surrounding these taxes, including what constitutes doing business, what types of entities are required to file, and when the returns are due, with dates that often do not correlate with federal or state due dates. While many remember March and April 15 as major tax deadlines, these localities have earlier filing dates.

San Francisco

Persons other than lessors of residential real estate are required to file an Annual Business Tax (ABT) return if, during the tax year, the taxpayer was engaged in business in San Francisco, was not otherwise exempt, and had more than $2,000,000 in combined taxable San Francisco gross receipts.

This filing includes the reporting and payment of (1) the Gross Receipts Tax (GRT) or Administrative Office Tax (AOT); (2) the Homelessness Tax (HGRT) or the Homelessness Administrative Office Tax (HAOT); and (3) the Commercial Rents Tax (CRT).

The Gross Receipts Tax Rate (GRT) depends on the business’s level of gross receipts and nature of business activity.

The Homelessness Gross Receipts Tax (HGRT) (effective January 1, 2019) imposes an additional gross receipts tax of 0.175% to 0.69% on combined taxable gross receipts over $50 million.

The Commercial Rents Tax (CRT) generally applies to businesses leasing commercial space in the City.

As part of Proposition F, San Francisco's Payroll Expense Tax (PET), which was a part of the SF ABT return in the past, has been eliminated, starting with the 2021 filing.

The San Francisco 2021 Annual Business Tax (SF ABT) return is due on February 28, 2022.

A 60-day filing extension is available for the Annual Business Tax (ABT) return.

Los Angeles

The Los Angeles City Business Tax (LACBT) is a license tax for the privilege of conducting business in the City of Los Angeles. It is gross receipts-based and levied against taxpayers that are either located within the city or engaged in business in the city.

The Los Angeles 2021 Business Tax return is due on February 28, 2022 with a possible extension of 45 days.

Neighboring cities such as Beverly Hills and Santa Monica impose their own gross receipts tax on businesses operating within their jurisdictions with differing deadlines (January 31 for Beverly Hills and August 31 for Santa Monica).