LOS ANGELES : Riordan Won’t Veto Tax Breaks for Businesses
Despite reservations about the effectiveness of a business tax-relief ordinance passed by the council last week, Mayor Richard Riordan said Friday that he will not veto the measure.
“I am skeptical of the claim that this waiver will help promote new businesses in these underserved communities,” Riordan said in a statement noting he would allow the measure, which provides tax breaks for businesses in the city’s most blighted areas. About 12,000 businesses in a 20-square-mile zone, including Watts, Pacoima and parts of Lincoln Heights, will be eligible for the business tax breaks aimed at stimulating the economy in those neighborhoods.
When the measure first reached the City Council, the mayor called it a giveaway that would do little to revitalize the areas while depriving the cash-strapped city of revenues.
On Friday, however, he indicated that he was willing to try the program pending an evaluation of its costs and benefits after one year.
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