ONE: Get a City of Los Angeles Business Tax Registration Certificate (“BTRC”).
Apply for and be issued a LA City Business Tax Registration Certificate (“BTRC”) (See attached Letter from the City Office of Finance and complete and submit the Application for Business Tax on pages 3 & 4);

TWO: Pay the City tax on an apportioned amount.
Remit the tax on the apportioned gross receipts from all sales made to retailers or other customers in the City of LA. The City doesn’t tax total sales you make in LA; instead, it will apportion the tax to 35% (City Clerk Ruling No. 13).

Determine whether you owe 1% or 2% tax. The applicable tax rate depends on which activity you are engaged in. The tax rate for distribution is 2% of the apportioned amount. The tax rate for transport-only distribution is 1% of the apportioned amount. See Sections 21.51 and 21.52 of Los Angeles Municipal Code (L.A.M.C.).

Example
Let’s say you are a transporter with total gross receipts of $350,000 from transactions in LA.
Reportable amount: 35% of your gross receipts = $122,500
Tax due: 1% of the reportable amount = $1,225

THREE: Print and store a copy of the BTRC in all vehicles that distribute or deliver in LA.