HUNTINGTON PARK : Business Promotion Tax Is Cut in Half
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The Huntington Park City Council has given businesses a break by cutting mandatory promotional taxes in half--to 17.5%-- for a year. About 330 businesses that have already paid their annual dues will be sent refund checks, Finance Director Ed Chow said.
The reduction followed action taken last month by the city on a 20% cut in payments to the Chamber of Commerce, which has an annual contract with the city to promote Huntington Park as a place to shop. As a result, the city will save more than $23,000 annually.
The amount of promotional tax charged to a business is based on the price of an annual license fee, which ranges from $81 to $4,400, said Angel Melendrez, business license coordinator. The city has about 1,800 businesses, and all are required to pay the tax.
The tax was 25% of the fee when it started in 1978. It jumped to 35% two years ago.
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