Lynwood

A public hearing has been scheduled July 16 on a proposal to increase business license taxes by 50%, which could raise an additional $90,000 a year, according to a city spokesman.

Most of the additional money would be used to help the Lynwood Chamber of Commerce expand its promotional activities for the city, said Donald Fraser, assistant to the city manager.

The remaining money would be used to promote additional city activities, including such events as the Fourth of July fireworks display, Christmas parade, Black History Week celebration and Cinco de Mayo events.

“The theory behind the proposal is to have the businesses who profit directly by promotional activities of the chamber support the chamber rather than the city,” Fraser said.

Cities are permitted by state law to raise money for their chambers through similar proposals, Fraser said.

The city currently receives about $180,000 annually in business taxes from its 2,000 businesses. Businesses pay different rates based on their size and the number of employees. The city provides the chamber with about $28,000 a year, Fraser said.

If the businesses that would pay a majority of the proposed new taxes protest the measure, the council by state law cannot adopted it.