Lobby Unit Seeks to Avoid Subway Tax : Asks Exemption Despite Strong Support for Metro Rail Plan

The Central City Assn. of Los Angeles, a downtown business lobbying organization and one of the strongest backers of the proposed Metro Rail subway system, Friday asked the City Council to exempt it from a special property tax needed to pay for the subway system.

Christopher Stewart, the president of the CCA, acknowledged that the association was one of the original advocates of the tax, known as a benefit assessment, but said it would not be fair to levy the assessment against nonprofit organizations like the CCA, which do not own any property.

“It was never intended by the blue-ribbon committee set up to work on the benefit assessment plan that nonprofits who don’t own property be denied the exemption,” Stewart said.

Stewart acknowledged that the blue-ribbon committee included CCA members.

Stewart said that other nonprofit groups that rent space downtown and should be exempted are the Southern California Businessmen’s Assn., the Western Oil and Gas Assn., the Building Owners and Managers Assn. and the Los Angeles Taxpayers’ Assn.

Ordinance Approved

The council approved Friday a transportation ordinance that would subject the CCA to the assessment but instructed the city attorney’s office to look into the possibility of an amendment that would exempt the CCA and similar groups.

The council vote came after several council members let fly a volley of sarcasm at the idea of exempting the CCA.

“I’m shocked that the business community could ask for such special privileges,” said Councilman Marvin Braude.

Braude argued that the exemptions should be limited to religious and charitable groups.

‘Foisting It on Poor’

“The people coming here for an exemption from the benefit assessment are the same ones foisting it on the poor people who are going to lose their property because of it,” said Councilman John Ferraro, an opponent of Metro Rail who has said that the assessment will be too costly for some small businesses to bear.

Other members of the council warned that any exemption for the CCA and similar associations would likely extend to prestigious downtown social clubs, such as the Jonathan Club and the California Club, that are also nonprofit.

However, Councilman Howard Finn said it might be possible to create an exemption that would apply to groups like the CCA, which do not own property, but would not apply to social organizations, like the clubs, that own property.