Los Angeles gives in and eliminates a tax on the rich. In order to raise revenue, a few years ago, Los Angeles decided to tax new car dealerships. The rich buy new cars! Make them pay.
The dealerships left and what the city got was, well here it is.
Mayor Villaraigosa urges end to business tax on new car dealers - latimes.com
The mayor credited his business team with helping to persuade Beverly Hills Porsche to move by accelerating the permitting process. He said the luxury car dealer racked up $100 million in sales last year, which would mean about $1 million a year in sales tax revenue that would go toward the city's general fund. The mayor's office also said Beverly Hills BMW had $145 million in sales last year, which would mean about $1.45 million in sales tax revenue for Los Angeles if it hits that mark again.
Englander and Garcetti plan to press the council to pass a motion to eliminate the business tax for new auto dealers. The motion points out that, although the city has 10.7% of the state's population, it has just 3.7% of the auto dealerships. It also notes that the Greater Los Angeles New Car Dealers Assn. says that car dealers in Los Angeles employ 5,200 people and pay $640 million in wages and benefits.
The motion concludes: "Eliminating the gross receipts tax is a crucial incentive that can help bring new businesses to Los Angeles and help existing businesses stay and thrive, create jobs and breathe life into our economy. Eliminating the gross receipts tax for new car dealerships is the perfect first step because they generate so much sales tax revenue and jobs."
The dealerships left and what the city got was, well here it is.
Mayor Villaraigosa urges end to business tax on new car dealers - latimes.com
The mayor credited his business team with helping to persuade Beverly Hills Porsche to move by accelerating the permitting process. He said the luxury car dealer racked up $100 million in sales last year, which would mean about $1 million a year in sales tax revenue that would go toward the city's general fund. The mayor's office also said Beverly Hills BMW had $145 million in sales last year, which would mean about $1.45 million in sales tax revenue for Los Angeles if it hits that mark again.
Englander and Garcetti plan to press the council to pass a motion to eliminate the business tax for new auto dealers. The motion points out that, although the city has 10.7% of the state's population, it has just 3.7% of the auto dealerships. It also notes that the Greater Los Angeles New Car Dealers Assn. says that car dealers in Los Angeles employ 5,200 people and pay $640 million in wages and benefits.
The motion concludes: "Eliminating the gross receipts tax is a crucial incentive that can help bring new businesses to Los Angeles and help existing businesses stay and thrive, create jobs and breathe life into our economy. Eliminating the gross receipts tax for new car dealerships is the perfect first step because they generate so much sales tax revenue and jobs."
