Digital Salute
When is the internet not the internet? When the City of Los Angeles sends you a tax bill big enough to choke your fiber optics.
The City, under Mayor Richard Riordan, lured hundreds of internet startups to LA ten years ago with a promised tax break. Some of those firms turned out pretty well, like Shopzilla.com, a shopping comparison site which now employs 220 people and, according to the LA Times, spends over half a million a year just on locally catered lunches for staff.
The City, in its panicked grasp for ready cash, decided to re-define the term “internet” and silently dropped tax bill bombs on several of these companies. Shopzilla’s past-due definition overhaul cost them $2.5 million in additional taxes. They’ll see the City in court.