Banks and Business license fees in Torrance

Why are banks allowed an exemption from paying a business license fee in the city of Torrance, California?  As I have pursued an answer to this question I have learned that banks are also exempt from business license fees in many cities throughout Los Angeles county, and probably beyond.  Why?  I have not found any clear, logical, or acceptable explanation so far.  I welcome an explanation that makes sense, no matter how egregiously unfair.  The problem is that no one seems to really know when this cozy deal was made, why it was made, or why it is continuing.  I suppose it has to do with some broken promise about banks equating with prosperity and easier access to credit for small businesses and homeowners.  But, by the looks of today’s news and the dismal economic situation for the majority, including those in the city of Torrance, any promise by Banks that a good deal will follow from such an exemption is a lie.

I ask for any reasonable explanation for this glaringly suspicious deal that benefits banks but no others—especially now when municipalities are crying and cutting because they complain about empty coffers.  Further, how many other mega-corporate “job creators” are enjoying cozy yet unspoken deals with cities, counties, states, or the federal government?

Published by anthonycollinsfilm

I am a documentary filmmaker, teacher, writer, and musician. I have lived, worked, and traveled in many parts of the world, and look forward to more adventures and opportunities for learning in the future. I am using this blog as a process of learning, a chance to reflect upon the past, and a good way to express what I know in the moment.

2 thoughts on “Banks and Business license fees in Torrance

  1. CALIFORNIA CONSTITUTION
    ARTICLE 13 TAXATION

    SEC. 27. The Legislature, a majority of the membership of each
    house concurring, may tax corporations, including state and national
    banks, and their franchises by any method not prohibited by this
    Constitution or the Constitution or laws of the United States. Unless
    otherwise provided by the Legislature, the tax on state and national
    banks shall be according to or measured by their net income and
    shall be in lieu of all other taxes and license fees upon banks or
    their shares, except taxes upon real property and vehicle
    registration and license fees.

  2. Thanik you to whomever shared this comment, letting me know that the California State Constitution has disallowed local city governments from collecting potential revenues from banks. I am surmising this is because banks already pay the state so they are somehow relieved of additionally paying local governments too—even though that is precisely what every other business has to do! I also found out that a similar waiver is enjoyed by the Insurance industry too—ALL banks and ALL insurance companies are not compelled to pay business license fees in the State of California. Now, I am trying to find out are they also being relieved of paying Community Development Fees for their businesses? I think this entire arrangement is unfair and needs to be reversed but first I am trying to figure out the scope of the problem.

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