As a tax attorney, Irvine stands out as one of Orange County’s thriving business and tax centers. Along with Newport Beach, Irvine is one of the favorite corporate and retail centers for many sectors, whether it is legal, financial, technological, or consumer shopping.
Our tax law firm’s Irvine clients often hold patents which are integral to the products of major manufacturers or provide high-level consulting or technical support to nationwide or global industries. Tax attorney Daniel Layton’s background as an IRS attorney in San Jose, California, at the heart of silicone valley, and his experience handling Orange County cases since practicing in the area for more than a decade have given him unique experience which allows him to efficiently and competently handle those cases. Mr. Layton has helped clients successfully resolve cases involving the Research & Development Tax Credit, tax basis in intellectual property, and patent license agreements at both the IRS and FTB audit and appeal levels, including in U.S. Tax Court.
City of Irvine Tax Profile
In addition to income tax and employment and payroll tax, residents and businesses in the City of Irvine are subject to the following types of taxes.
Sales tax in Irvine is the same rate, the lowest Orange County rate, as other OC cities – 7.75%. This is comprised of the California Sales and Use Tax plus a 0.5% county-wide Measure M Transportation Tax. Compared to Los Angeles County, where the cities’ sales tax rates vary between 9.5% and 10.25%, this is a favorable rate. In fact, only four cities in OC have higher rates than Irvine, maxing out at 8.75%.
Real Property Tax Assessments
For 2015-2016, the average effective real property tax rate for Irvine was 0.80%. However, with Mello-Roos and other assessments the annual bill often ranges from between 1-2%. To see any property tax assessment, you can type in your address at http://tax.ocgov.com/tcweb/search_addr.asp and it will provide you the parcel no. to select and view information on your property. For a law firm address:
100 Spectrum Center Dr., Irvine, CA 92618
The tax.ocgov website provided the information that the tax bill was fully paid and by clicking on the button with the ###=###-## parcel no., I was quickly provided the exact amount of the payments, the assessed values and exemptions on the land, improvements, personal property, and other aspects of the property. The effective tax rate on the assessed values and exemptions in that case was about 1.2%.
Irvine Special Tax Revenues
Irvine has a “Transient Occupancy Tax” (TOT) which is set at 8% and Irvine Hotel Improvement District Assessment (IHID) set at 2% as of January 14, 2019, which both apply to hotels and motels and are collected from occupants. This total 10% tax applies for occupancy of 30 days or less.
In addition, there is a Utility User Tax (UUT) on telephone use, electricity, gas, and water of 5.5%.
Tax Attorney Serving Irvine
Daniel W. Layton is a tax attorney serving Irvine, California, clients and other Orange County cities. He is a former IRS tax trial attorney in the Internal Revenue Service’s Silicon Valley office and former U.S. Department of Justice attorney in Los Angeles U.S. Attorney’s Office. He may be contacted at (949) 301-9828.