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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
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: LA eliminates tax to entice auto dealers to stay in city limits Back to Topics
REPLIES (newest first) Post a Reply
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honda0105
Champion Author Tallahassee

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Message Posted: Jul 14, 2012 7:21:15 AM

time will tell if it doesn't backfire on them.
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Gas_Buzzer
Champion Author South Carolina

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Message Posted: Jul 11, 2012 7:55:10 AM

Old and unrelated news
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BEGTWO
Champion Author Maryland

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Message Posted: Jul 11, 2012 6:49:25 AM

I guess it wasn't working
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tomok
Champion Author Portland

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Message Posted: Jul 11, 2012 4:48:48 AM

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!
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rjhenn
Champion Author Des Moines

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Message Posted: Jul 10, 2012 11:52:30 PM

Funny how Villaraigosa just announced this on Monday and the ignoratti are already claiming it's a success.
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52MPG
Champion Author Dayton

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Message Posted: Jul 10, 2012 11:47:42 PM

It is amazing how less taxes promotes more commerce.
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rahcat
Champion Author Grand Rapids

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Message Posted: Jul 10, 2012 11:28:21 PM

LA need every last penny that it can get its grubby hands on.
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crreed1
Champion Author West Virginia

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Message Posted: Jul 10, 2012 11:14:29 PM

good for LA
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PaylessKY
Champion Author Kentucky

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Message Posted: Jul 10, 2012 11:12:28 PM

Working deals like this and retaining jobs will keep or increase payroll taxes due to more employment.
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Dodge_Me
Champion Author Atlanta

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Message Posted: Jul 10, 2012 11:08:25 PM

Sounds good but at what cost, they will just get the taxes another way
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Jumpmaster82
Champion Author South Carolina

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Message Posted: Jul 10, 2012 11:02:43 PM

So, lowering taxes means more jobs? Amazing! Car dealership owners probably make more than $250k a year - wonder if obama understands this? uh, no.
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pgerassi
Champion Author Milwaukee

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Message Posted: Jul 10, 2012 10:55:50 PM

ok
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tco9436
Champion Author Connecticut

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Message Posted: Jul 10, 2012 10:54:53 PM

Great
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danreino
Champion Author Twin Cities

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Message Posted: Jul 10, 2012 10:53:22 PM

Shocking
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Jeeputtputt
Champion Author Ohio

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Message Posted: Jul 10, 2012 10:50:59 PM

a start
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GLCSHADOW
Champion Author Oregon

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Message Posted: Jul 10, 2012 10:46:44 PM

Duh! Who would have thought that taxing businesses would drive them away and reducing taxes would attact them. What a crazy world....
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drobbbb
Champion Author Maryland

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Message Posted: Jul 10, 2012 10:46:12 PM

ok
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naiiawah
Champion Author Boise

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Message Posted: Jul 10, 2012 10:42:20 PM

What happens when all the business taxes are eliminated and someone figures it out?
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satrn38mpg
Champion Author Raleigh

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Message Posted: Jul 10, 2012 10:40:46 PM

ok
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jessek
Champion Author Detroit

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Message Posted: Jul 10, 2012 10:40:07 PM

This is one smart decision by LA.
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jorod55
Champion Author California

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Message Posted: Jul 10, 2012 10:39:18 PM

LA really needs more cars on the road.
24 - 7 grid lock. Get out and walk.
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walkingtall
Champion Author Toronto

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Message Posted: Jul 10, 2012 10:37:53 PM

Cities that impose taxes to business,they just drive the businesses elsewhere.
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us4usa
Champion Author Missouri

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Message Posted: Jul 10, 2012 10:35:19 PM

Greed started than tax any ways...
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bonzoonfmb
Champion Author Florida

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Message Posted: Jul 10, 2012 10:35:07 PM

They can have some of Florida's.
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ERO
Champion Author Milwaukee

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Message Posted: Jul 10, 2012 10:33:58 PM

now your talking pro growth - obama take note
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REKEY
Champion Author South Carolina

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Message Posted: Jul 10, 2012 10:33:29 PM

Does LA need more cars?
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WIPACKERFAN
Champion Author Chicago

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Message Posted: Jul 10, 2012 10:29:51 PM

Tax breaks will always wow businesses. Is it really the best use of tax dollars?
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camel1
Champion Author Minnesota

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Message Posted: Jul 10, 2012 10:26:56 PM

cities need to be business friendly
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mcmonsta
Champion Author Honolulu

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Message Posted: Jul 10, 2012 10:25:52 PM

more workers, more cars more taxes .....seems about right....my god they are actually thinking
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mstearno
Champion Author Dayton

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Message Posted: Jul 10, 2012 10:21:04 PM

cities do not understand business
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wayoung56
Champion Author Alabama

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Message Posted: Jul 10, 2012 10:19:34 PM

About time...
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CAroadrunner101
Champion Author California

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Message Posted: Jul 10, 2012 10:17:37 PM

oops...
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bif65
Champion Author Virginia

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Message Posted: Jul 10, 2012 10:17:14 PM

ok
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tessnlu
Champion Author Missouri

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Message Posted: Jul 10, 2012 10:14:10 PM

taxes can run people away. don't blame them.
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TRAIN RIDER
Champion Author San Bernardino

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Message Posted: Jul 10, 2012 10:10:33 PM

How many years did it take these smart politicans to figure out they were losing dealerships and how to keep them?
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serrog
Champion Author Nova Scotia

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Message Posted: Jul 10, 2012 10:05:32 PM

Interesting
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abcdMA
Champion Author Worcester

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Message Posted: Jul 10, 2012 10:04:43 PM

LA is leaving the liberal (tax and spend) mindset in favor of business
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melvindale
Champion Author Michigan

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Message Posted: Jul 10, 2012 10:00:38 PM

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!
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96sc1
Champion Author El Paso

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Message Posted: Jul 10, 2012 9:58:50 PM

What?!? Lower taxes entice businesses? Who'd 'a' thunk it?
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grandamgt1
Champion Author Illinois

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Message Posted: Jul 10, 2012 9:58:33 PM

Finally, liberals figuring it out.
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souly
Champion Author Montreal

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Message Posted: Jul 10, 2012 9:56:21 PM

thanks for the post
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lewpuckett
Champion Author Georgia

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Message Posted: Jul 10, 2012 9:55:12 PM

ok
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AnObserver
Champion Author New Jersey

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Message Posted: Jul 10, 2012 9:53:36 PM

They are called economic incentives
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DustyHorse
Champion Author Virginia

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Message Posted: Jul 10, 2012 9:53:02 PM

Now all the businesses will want a brak.
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OGW
Champion Author London

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Message Posted: Jul 10, 2012 9:50:04 PM

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.
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RUNNINONEMPTYFL
Champion Author Florida

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Message Posted: Jul 10, 2012 9:44:21 PM

Here we go again...
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bojiway1
Champion Author Minnesota

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Message Posted: Jul 10, 2012 9:43:44 PM

congrats to the mayor on a start. long ways to go to help L.A. and California
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Tekkersmom57
Champion Author Syracuse

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Message Posted: Jul 10, 2012 9:41:31 PM

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.
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eblair54
Sophomore Author Missouri

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Message Posted: Jul 10, 2012 9:38:35 PM

Good idea.
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IUVidiot
Champion Author Indiana

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Message Posted: Jul 10, 2012 9:37:21 PM

ok
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