Do I owe Los Angeles City tax or not?

[DIY_Tax_Person]

I'm not sure if I owe local city taxes or not. I sit and collect royalties on spoken word audio albums. I simply get paid from SoundExchage (Internet and satellite radio royalties) and Tunecore (distributor to Amazon music store and iTunes). This sounds more like an 'investment', which of course would not be taxed.

The City of Los Angeles states that "Every person engaged in any trade, calling, occupation, vocation, profession or other means of livelihood in the City of Los Angeles, must obtain a Tax Registration Certificate (TRC) and pay the required business tax due". Very vague!

If, by their definition, I am engaged in some sort of business, then the question becomes what is my fund category, which determines my tax rate. "Multimedia business" @1.01%? "Wholesale sales" @ 1.01%? "Miscellaneous services" @ 3.56%?

http://finance21.cityofla.acsitefactory.com/sites/g/files/wph1721/files/2024-02/Tax%20Rate%20Table%2...

BTW, I tried calling the city and I was number 663 in line.  The city of LA is just a joke. I really hate paying one dime to this city if I don't have to.

[TomD8 · Accepted solution]

This is an income tax forum, not a business tax forum.  But perhaps the answer to Question #20 in this reference will help you:

https://finance.lacity.gov/faq/entertainment-creative-talent-faq#:~:text=Residuals%2Froyalties%20rec....

[DIY_Tax_Person]

Indeed royalties are not subject to local tax. The city closed out my 'account' and stopped hounding me.