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Business Cooperation Program
Keeps Tax Dollars in Commerce
Qualified local businesses can help Commerce keep tax dollars in the community by participating in the Commerce Business Cooperation Program.

When Commerce businesses make large purchases from out-of-state or out-of-country vendors, they pay a one percent “Use Tax” which is put into a tax pool and shared with other cities in Los Angeles County. Commerce’s share of the tax pool is one percent of one percent or less.

The Commerce Business Cooperation Program assists eligible local businesses with applying for a California State Board of Equalization Use Tax Direct Payment Permit that changes the way the State distributes local “Use Tax” and results in the City receiving 100 percent of its one percent share.

Participation is voluntary, free of cost, and does not result in new or increased taxes. By participating in the program, eligible businesses keep ”Use Tax” revenue in the community, generating much-needed funding for infrastructure and services like public safety and fire protection. Businesses may also be able to extend the use of their money due to a delayed tax remittance versus an immediate tax remittance. The Business Cooperation Program has also been vetted by the Commerce Industrial Council.

City staff will be contacting eligible Commerce businesses for voluntary participation. Businesses and nonprofit corporations with equipment expenditures of $500,000 or more from out-of-state vendors will be encouraged to take part in the program. Consultants from Municipal Revenue Advisors will work with City staff and local businesses to facilitate implementation of the program.

For more information, email Business License or call the Business License Officer at (323) 722-4805, extension 2327.