Mayor Bass Implements Business Tax Relief for Fire Victims Amid State Sales Tax Discussions

Los Angeles Mayor Karen Bass has actively pursued tax relief measures for residents and businesses affected by recent wildfires, despite social media claims suggesting otherwise. Responding to a tweet from Spencer Pratt, who stated, "> How about Karen Bass stops charging sales tax on the fire victims that have to rebuy everything she let burn!", official records indicate that sales tax is primarily a state-level responsibility, and Mayor Bass has focused on city-specific tax relief and broader recovery efforts. The California Department of Tax and Fee Administration (CDTFA) is the state agency responsible for sales and use tax, offering its own emergency relief for declared disasters.

The CDTFA provides emergency tax or fee relief, including extensions for filing and payment of various taxes, such as sales and use tax, for individuals and businesses directly impacted by state-declared emergencies. This relief applies to specific counties and disaster types, including recent fires in Los Angeles County. Taxpayers must typically apply for this state-level assistance, which offers extensions rather than blanket exemptions on purchases.

Mayor Bass's administration has implemented city-level tax relief, particularly for businesses affected by the January 2025 wildfires. She issued an emergency executive order, later approved by the Los Angeles City Council, to waive 2025 Los Angeles Business Taxes for significantly impacted businesses. Additionally, the Mayor directed the Office of Finance to explore relief from the Transient Occupancy (Hotel) Tax for fire-displaced residents, demonstrating a proactive approach to city-specific financial burdens.

The accusation that Mayor Bass "let burn" properties also lacks substantiation. While the Los Angeles Fire Department (LAFD) budget has faced scrutiny, Mayor Bass and her team have stated that the budget increased following firefighter raises and investments in equipment. Her administration has consistently thanked firefighters and taken steps to support fire recovery, including appointing a Chief Recovery Officer for the city's rebuild efforts.

Further, Mayor Bass has engaged in discussions regarding potential exemptions from Measure ULA, the city's "mansion tax," for homeowners in fire-affected areas selling damaged properties. This city-level real estate transfer tax, distinct from sales tax on goods, is another area where the Mayor has sought to alleviate financial pressure on fire victims to facilitate rebuilding. These comprehensive efforts highlight a multi-faceted approach to disaster recovery, distinguishing between state and local tax authorities.