New Look at Business Tax
The El Segundo City Council has scheduled another public hearing Wednesday to discuss restructuring a proposal that would increase taxes on businesses.
Officials from Hughes Aircraft Co., Rockwell International Corp., Northrop Corp., and the Chamber of Commerce told the City Council on Tuesday that they would like more time to offer feasible alternatives to the council plan.
The council is considering a payroll tax paid by the employer based on a percentage of the amount spent on wages and salary. A draft of the ordinance was released by the city Friday. The city now assesses a $60-per-employee business tax, which was adopted in 1986. Business officials complained Tuesday that it would be burdensome to compute a payroll tax.
El Segundo is considering the tax increase because it has projected a deficit of at least $1.6 million in the $20-million operating budget for the 1989-90 fiscal year.
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