Business groups split on proposed L.A. sales tax hike - LA Daily News

The business community is divided over whether to support Measure A, the half-percent sales tax increase on the city of Los Angeles' March 5 ballot.

The Valley Industry and Commerce Association announced Friday is it opposing the measure, called the Neighborhood Public Safety and Vital City Services Funding and Accountability Measure.

"There is no question that the city of Los Angeles' budget needs help," VICA President Stuart Waldman said. "Imposing one of the highest sales tax rates in the county in a struggling economy is not the answer. It is bad for the city, bad for the economy, and bad for business."

The proposal is designed to help the city deal with its structural deficit and is estimated to bring in $216 million a year. Officials have said the money would be used primarily to restore services to the Los Angeles Fire Department.

It would increase the sales tax from 9 percent to 9.5 percent.

However, other business groups and large developers have backed the measure.

Earlier this week the Los Angeles Area Chamber of Commerce and the Los Angeles Business Council announced they are supporting the measure.

Waldman said the VICA board believes the City Council failed to look at other options to bring in revenue or cut city costs, including privatizing the Los Angeles Zoo and the Convention Center, collecting unpaid taxes and allowing digital billboards to bring in more revenue.

"VICA believes that

the city has many options to bring in the necessary revenue to stop cuts to public safety," VICA Chairman David Adelman said.

Staples Center and L.A. Live owner Anschutz Entertainment Group has contributed $100,000 to support the measure and several other developers also have contributed to the yes on Measure A campaign.

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Source: http://www.dailynews.com/news/ci_22501967/business-groups-split-proposed-l-sales-tax-hike

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