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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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MedicKirk1 Champion Author New Hampshire Posts:1,348 Points:807,710 Joined:May 2008	Message Posted: Jul 10, 2012 6:21:25 PM Ignore MedicKirk1 Report Abuse That's kind of an odd tax.
jlisk1970_us Sophomore Author St. Louis Posts:233 Points:94,930 Joined:Feb 2012	Message Posted: Jul 10, 2012 6:18:13 PM Ignore jlisk1970_us Report Abuse guess ford, chevy and dodge may of moved so they can keep charging more money. Just think they may force us to buy foreign made cars and trucks.
heysailor Champion Author Pittsburgh Posts:9,587 Points:2,333,645 Joined:Mar 2006	Message Posted: Jul 10, 2012 6:16:20 PM Ignore heysailor Report Abuse Creative thinking
g747 Champion Author Mobile Posts:4,541 Points:933,670 Joined:Jul 2009	Message Posted: Jul 10, 2012 6:14:30 PM Ignore g747 Report Abuse Can't say i don't blame you guys!!!!!!!.
csh7586 Champion Author Wilmington Posts:4,792 Points:849,045 Joined:Dec 2010	Message Posted: Jul 10, 2012 6:13:40 PM Ignore csh7586 Report Abuse Gee. What a shock. Are you trying to tell us that lowering taxes and fees may actually work? I am astounded.
carpenter4u Champion Author Virginia Posts:2,436 Points:616,395 Joined:Jul 2011	Message Posted: Jul 10, 2012 6:12:40 PM Ignore carpenter4u Report Abuse I love the previous replies...... Maybe they will learn that higher taxes don't work
libertyut Champion Author Utah Posts:1,350 Points:291,625 Joined:Mar 2012	Message Posted: Jul 10, 2012 6:10:59 PM Ignore libertyut Report Abuse Is California waking up.
cougfanSC Champion Author South Carolina Posts:1,902 Points:1,296,905 Joined:Nov 2008	Message Posted: Jul 10, 2012 6:07:33 PM Ignore cougfanSC Report Abuse L.A. City Council obviously hates children, teachers, police officers, and firefighters!
carbuilder Rookie Author Detroit Posts:78 Points:90,360 Joined:Jul 2007	Message Posted: Jul 10, 2012 6:04:05 PM Ignore carbuilder Report Abuse Let's see if this works: reduce or eliminate taxes and business comes back.
J Eric Champion Author Los Angeles Posts:10,277 Points:2,072,080 Joined:Feb 2004	Message Posted: Jul 10, 2012 6:01:58 PM Ignore J Eric Report Abuse And that's why our city never has enough money to fix the roads, sidewalks, or provide other services, without raising our utility taxes... Costs me something like $35 per month to "rent" the trash bins for their "free" garbage collection. [Edited by: J Eric at 7/10/2012 7:03:52 PM EST]
mitchell6597 Champion Author New Hampshire Posts:3,462 Points:728,360 Joined:Apr 2010	Message Posted: Jul 10, 2012 6:01:51 PM Ignore mitchell6597 Report Abuse Crazy Californians!
gass12 Champion Author Omaha Posts:8,394 Points:2,304,690 Joined:Oct 2005	Message Posted: Jul 10, 2012 5:56:38 PM Ignore gass12 Report Abuse Just some their Stupid Laws they have there.
fire@53 Champion Author Philadelphia Posts:11,833 Points:2,770,050 Joined:May 2003	Message Posted: Jul 10, 2012 5:50:32 PM Ignore fire@53 Report Abuse Is the city realizing that taxes are taking jobs and tax revenue out of their city?
amearly Champion Author Michigan Posts:12,119 Points:2,467,610 Joined:Jan 2006	Message Posted: Jul 10, 2012 5:49:10 PM Ignore amearly Report Abuse For how long ,until they come up with some other tax ?
Settjec Champion Author Little Rock Posts:1,979 Points:687,745 Joined:May 2010	Message Posted: Jul 10, 2012 5:46:52 PM Ignore Settjec Report Abuse bend over and grab cheeks
dong1971 All-Star Author Vancouver Posts:660 Points:218,640 Joined:May 2012	Message Posted: Jul 10, 2012 5:46:01 PM Ignore dong1971 Report Abuse OK.
1MustangSally Rookie Author Salt Lake City Posts:39 Points:2,205 Joined:Jul 2012	Message Posted: Jul 10, 2012 5:41:48 PM Ignore 1MustangSally Report Abuse Thanks for this article.
scubadaniel Champion Author Dayton Posts:1,421 Points:692,070 Joined:Jan 2011	Message Posted: Jul 10, 2012 5:40:01 PM Ignore scubadaniel Report Abuse SCOTUS did not give us that tax, they just pulled the curtain off of it.
CPGas1815 Champion Author Michigan Posts:6,027 Points:1,099,605 Joined:Apr 2008	Message Posted: Jul 10, 2012 5:39:59 PM Ignore CPGas1815 Report Abuse As currently manufactured vehicles cost more than an arm and a leg and almost all of them are foreign vehicles the profits are shipped back to the foreign from which they came.
scubadaniel Champion Author Dayton Posts:1,421 Points:692,070 Joined:Jan 2011	Message Posted: Jul 10, 2012 5:39:02 PM Ignore scubadaniel Report Abuse Hmm Someone in government that realizes that businesses don't pay taxes, they just collect them from their customers. Drop the tax on businesses and they come back. What a concept! Are you listening over there in DC?
cutter1330 Champion Author Oklahoma Posts:8,035 Points:1,694,115 Joined:Jul 2005	Message Posted: Jul 10, 2012 5:38:08 PM Ignore cutter1330 Report Abuse Taxes hurt, not help the economy......didn't we just get a new tax on the middle by way of SCOTUS???
doggod Champion Author Anchorage Posts:2,848 Points:741,360 Joined:May 2009	Message Posted: Jul 10, 2012 5:37:23 PM Ignore doggod Report Abuse Oops, got here too late today. SandeeC already stole my line, so here's all I can say: Yeah, right!
preacherjohn Champion Author Modesto Posts:3,990 Points:1,919,760 Joined:May 2006	Message Posted: Jul 10, 2012 5:36:36 PM Ignore preacherjohn Report Abuse how long before they lay them off.
Pramodsharma Champion Author Richmond Posts:1,974 Points:387,390 Joined:Feb 2012	Message Posted: Jul 10, 2012 5:36:06 PM Ignore Pramodsharma Report Abuse It creates job for locals, brings more revenue from s/tax and hurts neighbors who were taking advantage. 3 wins!
mossimo36 Champion Author St. Louis Posts:2,665 Points:497,725 Joined:Sep 2011	Message Posted: Jul 10, 2012 5:35:41 PM Ignore mossimo36 Report Abuse Good luck with that.
paulydel Champion Author Delaware Posts:8,789 Points:847,900 Joined:Jan 2008	Message Posted: Jul 10, 2012 5:31:48 PM Ignore paulydel Report Abuse What a stupid question. The cars use gas don't they? The more cars on the road the more gas is used. Figures someone from CA who desn't ahve a clue and you wonder why they are bankrupt.
SandeeC Champion Author Ontario Posts:2,993 Points:460,705 Joined:Apr 2011	Message Posted: Jul 10, 2012 5:31:26 PM Ignore SandeeC Report Abuse It's amazing what a cut in taxes will do! Take a hint, governments!!!!
Spankster85 Champion Author Chicago Posts:1,729 Points:357,065 Joined:Nov 2011	Message Posted: Jul 10, 2012 5:30:52 PM Ignore Spankster85 Report Abuse Okay.
Fhuang66 Champion Author Cleveland Posts:1,325 Points:912,570 Joined:Oct 2005	Message Posted: Jul 10, 2012 5:29:45 PM Ignore Fhuang66 Report Abuse Sale more car, mor gas will be consumed
reeneedan Champion Author San Jose Posts:1,200 Points:385,245 Joined:May 2011	Message Posted: Jul 10, 2012 5:24:26 PM Ignore reeneedan Report Abuse so what does this have to do with gas prices
big_mac64 Champion Author Tennessee Posts:10,593 Points:1,485,690 Joined:May 2005	Message Posted: Jul 10, 2012 5:17:46 PM Ignore big_mac64 Report Abuse ok
balljars Champion Author Michigan Posts:8,113 Points:1,610,595 Joined:Aug 2008	Message Posted: Jul 10, 2012 5:16:03 PM Ignore balljars Report Abuse I want to own a Kia some day.
arcaneradio Champion Author Michigan Posts:2,527 Points:491,930 Joined:Dec 2010	Message Posted: Jul 10, 2012 5:15:53 PM Ignore arcaneradio Report Abuse k
voyagerkim All-Star Author Los Angeles Posts:620 Points:172,860 Joined:Oct 2011	Message Posted: Jul 10, 2012 5:15:39 PM Ignore voyagerkim Report Abuse Smart - The sales tax will definitely offset the business tax (especially at 8.75%!). The surrounding cities realized this years ago and enticed these businesses away from Metro LA.
bad_sailor Champion Author London Posts:7,778 Points:1,673,345 Joined:Dec 2007	Message Posted: Jul 10, 2012 5:11:32 PM Ignore bad_sailor Report Abuse That's nice.
no8c Champion Author Ohio Posts:2,809 Points:705,825 Joined:Jul 2008	Message Posted: Jul 10, 2012 5:11:29 PM Ignore no8c Report Abuse Thanks for posting this article!
suchont Veteran Author Los Angeles Posts:308 Points:166,715 Joined:May 2012	Message Posted: Jul 10, 2012 5:10:04 PM Ignore suchont Report Abuse .
NorthglennBill Champion Author Denver Posts:7,427 Points:1,472,920 Joined:Oct 2008	Message Posted: Jul 10, 2012 5:09:39 PM Ignore NorthglennBill Report Abuse Finally - a politician who knows that less taxes results in more business and a better economy.
speedys Champion Author Utah Posts:7,017 Points:2,558,885 Joined:Nov 2005	Message Posted: Jul 10, 2012 5:05:08 PM Ignore speedys Report Abuse Great idea.
LostAgain2009 Champion Author New Mexico Posts:2,398 Points:711,685 Joined:Apr 2009	Message Posted: Jul 10, 2012 5:03:43 PM Ignore LostAgain2009 Report Abuse There used to be articles about gas prices here.
farn1958 All-Star Author Twin Cities Posts:886 Points:183,385 Joined:Feb 2011	Message Posted: Jul 10, 2012 5:00:40 PM Ignore farn1958 Report Abuse interesting.
lucky69 Champion Author Austin Posts:2,761 Points:1,468,465 Joined:May 2008	Message Posted: Jul 10, 2012 5:00:07 PM Ignore lucky69 Report Abuse so what
bradley1969 Champion Author Wisconsin Posts:1,538 Points:331,330 Joined:Mar 2012	Message Posted: Jul 10, 2012 4:51:35 PM Ignore bradley1969 Report Abuse WHATEVER...
ethanol_is_bad Sophomore Author Boise Posts:242 Points:143,710 Joined:Oct 2011	Message Posted: Jul 10, 2012 4:48:17 PM Ignore ethanol_is_bad Report Abuse Funny how you lower taxes and business returns... The problem is our country can't lower taxes because we already spend more money than we take in. DID YOU HEAR THAT OBAMA! CUT THE SPENDING! YOU ARE RUINING THE ECONOMY! KEYNESIAN ECONOMICS DOESN'T WORK! IN NOVEMBER... GET HIM OUT OF OFFICE AND OUT OF THE COUNTRY! If we don't I hope you all have food storage because you will need it.
N5EXY Champion Author Austin Posts:5,497 Points:1,510,755 Joined:Jul 2004	Message Posted: Jul 10, 2012 4:44:55 PM Ignore N5EXY Report Abuse Finally - a better idea in democrappy dystopia.
Number43 Champion Author Lexington Posts:8,697 Points:1,638,170 Joined:Oct 2008	Message Posted: Jul 10, 2012 4:42:42 PM Ignore Number43 Report Abuse That's seems to be the sensible thing to do.
hank1326 Champion Author Los Angeles Posts:8,914 Points:1,733,810 Joined:Jun 2008	Message Posted: Jul 10, 2012 4:39:42 PM Ignore hank1326 Report Abuse Smart move. We need all the help. Perhaps they should lower our taxes when they are at it.
altima2008 Champion Author Philadelphia Posts:8,165 Points:1,737,990 Joined:Apr 2008	Message Posted: Jul 10, 2012 4:35:22 PM Ignore altima2008 Report Abuse Nobama won't allow this.
milespergallon Champion Author Illinois Posts:9,749 Points:1,909,335 Joined:Feb 2007	Message Posted: Jul 10, 2012 4:34:19 PM Ignore milespergallon Report Abuse Isn't that state bankrupt?
NemoIL Champion Author Illinois Posts:3,025 Points:1,313,220 Joined:Aug 2008	Message Posted: Jul 10, 2012 4:30:56 PM Ignore NemoIL Report Abuse More psychotic liberal policies at work, remember California use to be the home of numerous car manufacturing plants, that was until the greens forced them to leave the state. Now there are no major auto manufacturing plants in California. They all left and took their high paying jobs with them.
saleboss Champion Author Phoenix Posts:3,929 Points:1,177,875 Joined:Feb 2006	Message Posted: Jul 10, 2012 4:30:19 PM Ignore saleboss Report Abuse Jobs are good for everyone!