County IN BRIEF : LOS ANGELES : L.A. Votes to Hike Tax on Businesses

The Los Angeles City Council voted Tuesday to increase taxes on local businesses by 2.5%, putting in place the last piece of a $59-million tax package that will affect everyone from suburban commuters to downtown merchants. The council approved, 12 to 1, a 10% gross-receipts tax on businesses that is expected to raise $27 million annually for the city, which is facing its worst financial crisis in years, according to officials. The tax will replace the 7.5% surcharge now levied and will be based on a business’s total annual revenue, said Vallee Bunting, a spokeswoman for the mayor. Councilman Ernani Bernardi cast the lone negative vote. The business tax represents a significant chunk of a $59.3-million revenue package approved by the council in May as part of the city’s 1990-91 budget. Other key components included a 10% parking tax that went into effect in August, and a doubling of a special levy that pays for trash trucks. “It’s been my philosophy and that of the other council members that the financial burden of the city should be balanced equally between business, industry and residential taxpayers,” said Councilman Zev Yaroslavsky, chairman of the Finance and Revenue Committee.