The Los Angeles County Board of Supervisors on July 19 unanimously approved Assessor Jeffrey Prang’s initiative to raise the minimum threshold for business personal property assessments from $2,000 to $5,000.

Prang launched the initiative to reduce government bureaucracy and eliminate the property tax burden for some small business owners.

The Los Angeles County Office of the Assessor was previously required to assess business personal property – such as furniture and equipment – valued at more than $2,000. However, in many assessments, the cost of completing the assessment exceeded the property tax collected. Raising the minimum amount liminates property tax bills for many small business owners.

“[The] vote will allow my staff to refocus our efforts on larger assessments while dispensing with a requirement that costs the county money and creates challenges for business owners,” Prang said. “In fact, approximately 50,000 business owners will see combined property tax relief of roughly $3.2 million.”

The initiative is one component of the Los Angeles County Board of Supervisors’ Small Business Initiative, a five-year program to help small businesses transition to paying the county’s new minimum wage.

“Growing and supporting small businesses is an initiative of the highest priority for our department,” said Brian J. Stiger, director of the Los Angeles County Department of Consumer and Business Affairs. “We applaud the decision by the board of supervisors and the assessor to institute a higher tax threshold which should allow many small businesses to thrive.”

Los Angeles County Treasurer and Tax Collector Joseph Kelly also supports the increase because of its positive effect on taxpayers.

“Small or low dollar billings are easy for taxpayers to overlook or forget about when updating their billing address,” Kelly said. “If bills go unpaid, taxpayers incur penalties and costs as well as a potential tax lien.”

For information, visit us online at www.assessor.lacounty.gov.