LOS ANGELES : Task Force to Draft Criteria for Business Tax Cuts
The Los Angeles City Council created a task force Wednesday to draft criteria for awarding business tax cuts and development fee waivers for commercial and industrial construction projects.
Some council members called for such a task force after the panel waived more than $1 million in fees and charges for construction of the Metropolitan Water District’s new Downtown headquarters.
The council approved the MWD waiver as a friendly gesture to a major employer, but some members objected to depriving the city of the revenues.
If successful, the criteria could help officials weigh the cost of tax cuts and fee waivers against the economic benefits, such as new taxes and fees that the city would collect after a project is completed.
The criteria could include a minimum threshold for waivers and business tax cuts unless the city can recover the lost revenues within two to five years after construction is completed.