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L.A. Could Soon See a Half-Cent Sales Tax Hike
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Thanks to our gaping budget hole, the City of Los Angeles could soon be hiking up our sales tax by half a cent in order to fund city services.
The Los Angeles City Council strongly supports the proposed plan, and is moving forward in the process to get it on the March 5, 2013 municipal ballot, according to City News Service.
City officials say the bump in sales tax would bring in a projected $215 million annually, which would go into the city's general fund.
City Administrative Officer Miguel Santana stressed the urgency of finding a new way to bring in funds during today's meeting. "Without a new revenue source, it is impossible to maintain public safety in both police and fire at the same levels that we have today," he said.
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The Council is also considering three other tax increases--property, home sales, and parking lots. However, many Councilmembers are looking to forth just one tax bump, and they prefer that it be the half-cent sales tax.
A wish to increase tax revenue is not unanimous within the council. For example, Councilman Mitch Englander opposes putting any of the proposed tax hikes on the ballot, and says that a sales tax increase would hurt small businesses. Englander believes cost-cutting in other departments--including contracting out management of the Convention Center, zoo and senior centers--would be a more prudent approach.
Time is running out though to make the call. The Council has until November 14 to submit final items for the March ballot.
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