SEC. 21.27. ENTERTAINMENT AND MULTIMEDIA BUSINESS TAX LIMITATIONS.

(Added by Ord. No. 170,798, Eff. 1/21/96, Oper. 1/1/96.)

(a) For every person engaged in an entertainment or multimedia business, which business is located in either the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area, the total tax due under Sections 21.79, 21.109, 21.166, 21.167, 21.189.2, 21.189.4, 21.190 and 21.192 of this article at each such business shall not exceed $25,000.00 plus 10 percent of the amount of tax in excess of $25,000.00 that would otherwise be due. (Amended by Ord. No. 171,521, Eff. 3/27/97, Oper. 1/1/97.)

(b) The “Hollywood Redevelopment Area” is the area established by Ordinance No. 161,202 of the City of Los Angeles, adopted on May 7, 1986. The “North Hollywood Redevelopment Area” is the area established by Ordinance No. 152,030 of the City of Los Angeles, adopted on February 21, 1979.

(c) For the purposes of this section, the following definitions shall apply:

1. An “Entertainment Business” shall mean a business which has as its primary purpose the development, production, post-production, distribution, licensing, or marketing of motion pictures, television programming, video or audio recordings, video graphic images, and/or animation.

2. (Amended by Ord. No. 171,521, Eff. 3/27/97, Oper. 1/1/97.) A “Multimedia Business” shall mean a business that primarily:

i. Produces films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or more media, which media include, without limitation, computer generated graphics and video, film, slides, video tapes, audio tapes and photographs;

ii. Provides computer programming services on a contract or fee basis to the producer of films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or more media, which media include, without limitation, computer generated graphics and video, film, slides, video tapes, audio tapes and photographs, such services to include computer software design and analysis, modification of custom software, digital imaging and other related programming services; and

iii. Develops online and internet services, including the design of WEB sites, for clients.

(d) The terms “entertainment business” and “multimedia business,” as used in this section, shall not include any “adult entertainment business,” as defined in Section 12.70 B. of this Code.

(e) The provisions of this section shall apply only to businesses that generate more than 50% of their gross receipts from entertainment and/or multimedia business activities.

(f) The provisions of this section shall not become operative prior to January 1, 1997, except that they shall become operative upon the commencement of operations for businesses which commence operations in the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area on or after January 1, 1996.

(g) If either the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area, or both, shall become dissolved, the provisions of this section shall not apply thereafter to businesses located within what had been the boundaries of the dissolved area.