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LA eliminates tax to entice auto dealers to stay in city limits

KABC -- The city of Los Angeles has been losing auto dealerships to neighboring cities for years. That's because until now, L.A. charged a business tax that drove many dealers away. A new law signed by L.A. Mayor Antonio Villaraigosa aims to lure more dealerships back to the city.

There are 50 workers at the new Kia dealership in downtown Los Angeles. That number will soon be going to 75. Officials say in this economy that's a big deal. The Kia dealership is the second new dealership to open in downtown Los Angeles in the last 18 months.

"Those are jobs we want to keep," said L.A. City Councilman Eric Garcetti. "We want you to be able to support your families. We want you to be able to go out and spend that money in our restaurants."

Car dealerships bring in a lot of sales-tax revenue,

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Submitted Jul 10, 2012 By: DellDude2

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honda0105 Champion Author Tallahassee Posts:18,609 Points:1,608,545 Joined:Nov 2008	Message Posted: Jul 14, 2012 5:21:15 AM Ignore honda0105 Report Abuse time will tell if it doesn't backfire on them.
Gas_Buzzer Champion Author South Carolina Posts:14,149 Points:2,592,415 Joined:Sep 2005	Message Posted: Jul 11, 2012 5:55:10 AM Ignore Gas_Buzzer Report Abuse Old and unrelated news
BEGTWO Champion Author Maryland Posts:1,937 Points:723,315 Joined:Sep 2010	Message Posted: Jul 11, 2012 4:49:25 AM Ignore BEGTWO Report Abuse I guess it wasn't working
tomok Champion Author Portland Posts:32,984 Points:2,344,535 Joined:Aug 2006	Message Posted: Jul 11, 2012 2:48:48 AM Ignore tomok Report Abuse In order to keep businesses from moving out of the city and loosing that revenue, a city has to do what a city has to do. Sweeten the 'deal' with less taxes or no taxes and keep that earning potential inside the city limits. The money spent inside the city limits will multiply itself many times over. More jobs are created, which Barry has a very hard time trying to do! Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost. The price of fuel at the pump is too high! 12/22/2012!
rjhenn Champion Author Des Moines Posts:22,434 Points:2,228,950 Joined:Aug 2005	Message Posted: Jul 10, 2012 9:52:30 PM Ignore rjhenn Report Abuse Funny how Villaraigosa just announced this on Monday and the ignoratti are already claiming it's a success.
52MPG Champion Author Dayton Posts:7,257 Points:1,740,730 Joined:Apr 2006	Message Posted: Jul 10, 2012 9:47:42 PM Ignore 52MPG Report Abuse It is amazing how less taxes promotes more commerce.
rahcat Champion Author Grand Rapids Posts:2,463 Points:661,975 Joined:Jan 2010	Message Posted: Jul 10, 2012 9:28:21 PM Ignore rahcat Report Abuse LA need every last penny that it can get its grubby hands on.
crreed1 Champion Author West Virginia Posts:1,980 Points:2,525,360 Joined:May 2005	Message Posted: Jul 10, 2012 9:14:29 PM Ignore crreed1 Report Abuse good for LA
PaylessKY Champion Author Kentucky Posts:8,715 Points:1,580,475 Joined:Oct 2008	Message Posted: Jul 10, 2012 9:12:28 PM Ignore PaylessKY Report Abuse Working deals like this and retaining jobs will keep or increase payroll taxes due to more employment.
Dodge_Me Champion Author Atlanta Posts:2,214 Points:555,480 Joined:Mar 2006	Message Posted: Jul 10, 2012 9:08:25 PM Ignore Dodge_Me Report Abuse Sounds good but at what cost, they will just get the taxes another way
Jumpmaster82 All-Star Author South Carolina Posts:920 Points:848,630 Joined:Nov 2008	Message Posted: Jul 10, 2012 9:02:43 PM Ignore Jumpmaster82 Report Abuse So, lowering taxes means more jobs? Amazing! Car dealership owners probably make more than $250k a year - wonder if obama understands this? uh, no.
pgerassi Champion Author Milwaukee Posts:10,896 Points:2,131,605 Joined:Apr 2007	Message Posted: Jul 10, 2012 8:55:50 PM Ignore pgerassi Report Abuse ok
tco9436 Champion Author Connecticut Posts:1,772 Points:721,425 Joined:Mar 2010	Message Posted: Jul 10, 2012 8:54:53 PM Ignore tco9436 Report Abuse Great
danreino Champion Author Twin Cities Posts:8,343 Points:1,538,780 Joined:Mar 2008	Message Posted: Jul 10, 2012 8:53:22 PM Ignore danreino Report Abuse Shocking
Jeeputtputt Champion Author Ohio Posts:3,002 Points:677,465 Joined:Aug 2009	Message Posted: Jul 10, 2012 8:50:59 PM Ignore Jeeputtputt Report Abuse a start
GLCSHADOW Champion Author Oregon Posts:1,616 Points:1,885,560 Joined:Dec 2005	Message Posted: Jul 10, 2012 8:46:44 PM Ignore GLCSHADOW Report Abuse Duh! Who would have thought that taxing businesses would drive them away and reducing taxes would attact them. What a crazy world....
drobbbb Champion Author Maryland Posts:3,470 Points:811,260 Joined:Dec 2010	Message Posted: Jul 10, 2012 8:46:12 PM Ignore drobbbb Report Abuse ok
naiiawah Champion Author Boise Posts:2,385 Points:688,875 Joined:Mar 2011	Message Posted: Jul 10, 2012 8:42:20 PM Ignore naiiawah Report Abuse What happens when all the business taxes are eliminated and someone figures it out?
satrn38mpg Champion Author Raleigh Posts:5,062 Points:1,052,065 Joined:Sep 2009	Message Posted: Jul 10, 2012 8:40:46 PM Ignore satrn38mpg Report Abuse ok
jessek Champion Author Detroit Posts:2,657 Points:1,280,490 Joined:Sep 2008	Message Posted: Jul 10, 2012 8:40:07 PM Ignore jessek Report Abuse This is one smart decision by LA.
jorod55 Champion Author California Posts:1,470 Points:430,750 Joined:Dec 2011	Message Posted: Jul 10, 2012 8:39:18 PM Ignore jorod55 Report Abuse LA really needs more cars on the road. 24 - 7 grid lock. Get out and walk.
walkingtall Champion Author Toronto Posts:3,989 Points:1,119,730 Joined:Nov 2004	Message Posted: Jul 10, 2012 8:37:53 PM Ignore walkingtall Report Abuse Cities that impose taxes to business,they just drive the businesses elsewhere.
us4usa Champion Author Missouri Posts:5,984 Points:1,111,375 Joined:May 2008	Message Posted: Jul 10, 2012 8:35:19 PM Ignore us4usa Report Abuse Greed started than tax any ways...
bonzoonfmb Champion Author Florida Posts:1,777 Points:643,610 Joined:Feb 2010	Message Posted: Jul 10, 2012 8:35:07 PM Ignore bonzoonfmb Report Abuse They can have some of Florida's.
ERO Champion Author Milwaukee Posts:21,614 Points:3,679,535 Joined:Feb 2003	Message Posted: Jul 10, 2012 8:33:58 PM Ignore ERO Report Abuse now your talking pro growth - obama take note
REKEY Champion Author South Carolina Posts:8,569 Points:1,698,215 Joined:May 2008	Message Posted: Jul 10, 2012 8:33:29 PM Ignore REKEY Report Abuse Does LA need more cars?
WIPACKERFAN Champion Author Chicago Posts:8,799 Points:1,842,475 Joined:Aug 2005	Message Posted: Jul 10, 2012 8:29:51 PM Ignore WIPACKERFAN Report Abuse Tax breaks will always wow businesses. Is it really the best use of tax dollars?
camel1 Champion Author Minnesota Posts:8,265 Points:2,265,640 Joined:Jul 2006	Message Posted: Jul 10, 2012 8:26:56 PM Ignore camel1 Report Abuse cities need to be business friendly
mcmonsta Champion Author Honolulu Posts:3,222 Points:817,570 Joined:Sep 2009	Message Posted: Jul 10, 2012 8:25:52 PM Ignore mcmonsta Report Abuse more workers, more cars more taxes .....seems about right....my god they are actually thinking
mstearno Champion Author Dayton Posts:8,061 Points:1,730,260 Joined:Jan 2008	Message Posted: Jul 10, 2012 8:21:04 PM Ignore mstearno Report Abuse cities do not understand business
wayoung56 Champion Author Alabama Posts:2,795 Points:817,360 Joined:Oct 2006	Message Posted: Jul 10, 2012 8:19:34 PM Ignore wayoung56 Report Abuse About time...
CAroadrunner101 Champion Author California Posts:1,822 Points:1,314,450 Joined:Mar 2009	Message Posted: Jul 10, 2012 8:17:37 PM Ignore CAroadrunner101 Report Abuse oops...
bif65 Champion Author Virginia Posts:1,023 Points:195,230 Joined:Jan 2011	Message Posted: Jul 10, 2012 8:17:14 PM Ignore bif65 Report Abuse ok
tessnlu Champion Author Missouri Posts:24,238 Points:1,106,265 Joined:Aug 2008	Message Posted: Jul 10, 2012 8:14:10 PM Ignore tessnlu Report Abuse taxes can run people away. don't blame them.
TRAIN RIDER Champion Author San Bernardino Posts:9,077 Points:2,756,845 Joined:Oct 2004	Message Posted: Jul 10, 2012 8:10:33 PM Ignore TRAIN RIDER Report Abuse How many years did it take these smart politicans to figure out they were losing dealerships and how to keep them?
serrog Champion Author Nova Scotia Posts:5,559 Points:1,511,155 Joined:Oct 2008	Message Posted: Jul 10, 2012 8:05:32 PM Ignore serrog Report Abuse Interesting
abcdMA Champion Author Worcester Posts:7,917 Points:1,574,005 Joined:Nov 2008	Message Posted: Jul 10, 2012 8:04:43 PM Ignore abcdMA Report Abuse LA is leaving the liberal (tax and spend) mindset in favor of business
melvindale Champion Author Michigan Posts:1,438 Points:351,230 Joined:Jun 2011	Message Posted: Jul 10, 2012 8:00:38 PM Ignore melvindale Report Abuse About the dealers who left. They spent a lot of money to build a new store, even if they moved into an existing building the cost to make it look like their brand of car store is supposed to look like is fairly expensive. Then there is equipment: moving the good equipment and replacing the worn equipment. Finally there is advertising. They had to let everybody know where they are, especially after a move. Is the city of Los Angeles going to make it worth their while even with these costs? There are other costs as well. I don't know LA. I know Detroit. When certain businesses moved to Detroit, they had a lot of employees take an early retirement, find other jobs in the company, or even quit. All because they did not want to work in Detroit. There are dangerous areas in Detroit. While they did not have to work in those areas, they had to drive through them on the way to work. Then there is the city tax. Detroit charges everyone who works in Detroit 1.5% income tax. (Its 3% if you live in Detroit, and yes they still have property tax, but no personal property tax, and no sales tax. Not in Detroit at least.) How will LA overcome these sorts of issues for businesses? Does it only apply to car dealers, or to all businesses? If only to car dealers - watch for that class action law suit from all the other businesses who may benefit from such a program but are denied it by the type of business they are in. Otherwise, great idea!
96sc1 Champion Author El Paso Posts:8,517 Points:1,367,440 Joined:Mar 2008	Message Posted: Jul 10, 2012 7:58:50 PM Ignore 96sc1 Report Abuse What?!? Lower taxes entice businesses? Who'd 'a' thunk it?
grandamgt1 Champion Author Illinois Posts:2,336 Points:1,238,650 Joined:Apr 2008	Message Posted: Jul 10, 2012 7:58:33 PM Ignore grandamgt1 Report Abuse Finally, liberals figuring it out.
souly Champion Author Montreal Posts:1,760 Points:431,395 Joined:Jun 2010	Message Posted: Jul 10, 2012 7:56:21 PM Ignore souly Report Abuse thanks for the post
lewpuckett Champion Author Georgia Posts:1,155 Points:646,635 Joined:Mar 2011	Message Posted: Jul 10, 2012 7:55:12 PM Ignore lewpuckett Report Abuse ok
AnObserver Champion Author New Jersey Posts:8,354 Points:2,257,780 Joined:Sep 2005	Message Posted: Jul 10, 2012 7:53:36 PM Ignore AnObserver Report Abuse They are called economic incentives
DustyHorse Champion Author Virginia Posts:6,079 Points:1,390,785 Joined:Oct 2008	Message Posted: Jul 10, 2012 7:53:02 PM Ignore DustyHorse Report Abuse Now all the businesses will want a brak.
OGW Champion Author London Posts:5,324 Points:1,531,150 Joined:Sep 2005	Message Posted: Jul 10, 2012 7:50:04 PM Ignore OGW Report Abuse All businesses should pay a business tax but if it is excessive and not reasonable, it will drive business away. We have paid a fair and reasonable business tax for 25 years and have no intention of moving.
RUNNINONEMPTYFL Champion Author Florida Posts:1,408 Points:460,700 Joined:May 2011	Message Posted: Jul 10, 2012 7:44:21 PM Ignore RUNNINONEMPTYFL Report Abuse Here we go again...
bojiway1 Champion Author Minnesota Posts:2,039 Points:477,085 Joined:Dec 2011	Message Posted: Jul 10, 2012 7:43:44 PM Ignore bojiway1 Report Abuse congrats to the mayor on a start. long ways to go to help L.A. and California
Tekkersmom57 Champion Author Syracuse Posts:1,874 Points:700,215 Joined:May 2010	Message Posted: Jul 10, 2012 7:41:31 PM Ignore Tekkersmom57 Report Abuse It was smart of Los Angeles to be aware of this tax that was driving the dealerships away. Smart move in removing it so now you will begin to get more sales tax revenue. If only other government officials could be so wise.
eblair54 Sophomore Author Missouri Posts:143 Points:436,250 Joined:Sep 2011	Message Posted: Jul 10, 2012 7:38:35 PM Ignore eblair54 Report Abuse Good idea.
IUVidiot Champion Author Indiana Posts:3,580 Points:707,385 Joined:Jun 2011	Message Posted: Jul 10, 2012 7:37:21 PM Ignore IUVidiot Report Abuse ok