Los Angeles City Council approved Friday a series of initiatives aimed empowering the city's stagnant economy by providing a tax break for it, great new businesses and taking measures to attract a Chinese car maker and a museum planned by billionaire Eli Broad.
Hoping to get more of her constituents back to work, council voted 10-0 to remove the business tax for three years for companies that move into town and get more than $ 500,000 in annual gross receipts .
The Council also extended an existing tax break for it, new businesses and smaller until December 31, 2012.
Supporters of the proposal, including Mayor Antonio Villaraigosa, said the changes that are expected to create 55,000 jobs and prevent new businesses from choosing other Southern California cities over Los Angeles.
"We are in a difficult environment, competing with our neighbors – 90 or so jurisdictions that surround us, most of whom would not pay a gross-receipts tax," said consultant Richard Alarcón.
In a separate action, the council agreed to spend $ 2,000,000 to convince BYD, an electric car maker based in China, to open an office on Figueroa Street just south of 10 freeway. And in a third vote, the council unanimously approved a broad financial agreement to bring a new museum for the Grand Avenue corridor, across road from Walt Disney 2nd Concert Hall.
As part of that proposal, the city agency rizhvillim will provide up to $ 30 million for a new parking garage to serve the museum. The deal still needs approval from the county Board of Supervisors.
By three votes, the only serious debate focused on the business tax break. Because the city currently receives $ 411,000,000 from the gross-receipts tax on her this year – about 10% of its total revenue – some council members wanted assurances that the new tax break will not come to the city budget deeper in the hole.
In a written report to city officials, Professor Charles Swenson USC Marshall School of Business said the measure could produce an increase in "small" in income, while helping the city added about 55,000 jobs.
However, consultant Paul Koretz had doubts about the thoroughness of the study, saying that he expected some businesses to move into the city without regard to its tax policy.
"There is no doubt that we will help you sell an image that the city has started to become more business-friendly," he said. "But I'm not so sure we can say with certainty that we'll end up with more revenue as a result."
Koretz voted for the measure anyway. New tax break would not apply to companies already in Los Angeles, who pay $ 1.01 to $ 5.07 for each $ 1,000 of gross income, depending on the category of business to which they belong. http://articles.ex-youtube.com/2010/08/los-angeles-approves-business-tax/
Hoping to get more of her constituents back to work, council voted 10-0 to remove the business tax for three years for companies that move into town and get more than $ 500,000 in annual gross receipts .
The Council also extended an existing tax break for it, new businesses and smaller until December 31, 2012.
Supporters of the proposal, including Mayor Antonio Villaraigosa, said the changes that are expected to create 55,000 jobs and prevent new businesses from choosing other Southern California cities over Los Angeles.
"We are in a difficult environment, competing with our neighbors – 90 or so jurisdictions that surround us, most of whom would not pay a gross-receipts tax," said consultant Richard Alarcón.
In a separate action, the council agreed to spend $ 2,000,000 to convince BYD, an electric car maker based in China, to open an office on Figueroa Street just south of 10 freeway. And in a third vote, the council unanimously approved a broad financial agreement to bring a new museum for the Grand Avenue corridor, across road from Walt Disney 2nd Concert Hall.
As part of that proposal, the city agency rizhvillim will provide up to $ 30 million for a new parking garage to serve the museum. The deal still needs approval from the county Board of Supervisors.
By three votes, the only serious debate focused on the business tax break. Because the city currently receives $ 411,000,000 from the gross-receipts tax on her this year – about 10% of its total revenue – some council members wanted assurances that the new tax break will not come to the city budget deeper in the hole.
In a written report to city officials, Professor Charles Swenson USC Marshall School of Business said the measure could produce an increase in "small" in income, while helping the city added about 55,000 jobs.
However, consultant Paul Koretz had doubts about the thoroughness of the study, saying that he expected some businesses to move into the city without regard to its tax policy.
"There is no doubt that we will help you sell an image that the city has started to become more business-friendly," he said. "But I'm not so sure we can say with certainty that we'll end up with more revenue as a result."
Koretz voted for the measure anyway. New tax break would not apply to companies already in Los Angeles, who pay $ 1.01 to $ 5.07 for each $ 1,000 of gross income, depending on the category of business to which they belong. http://articles.ex-youtube.com/2010/08/los-angeles-approves-business-tax/
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