Inglewood Voters to Decide on Tax Hikes for New Arena

Inglewood residents will decide April 1 whether the city should increase three local taxes to generate about $1.5 million a year to help pay for a sports arena for the Lakers basketball team and the Kings hockey franchise.

The taxes, which would go into effect July 1, were approved by the City Council in September to help pay for its offer to arena developers Ed Roski Jr. and Philip Anschutz to help build a $200-million facility in Inglewood. Developers also are negotiating with Los Angeles to build an arena next to the downtown Convention Center.

But Proposition 218, which passed in November, mandated that all local tax increases made since Jan. 1, 1995, must be approved by a majority of voters.

On Tuesday, the City Council voted 4 to 0 to place the taxes on the ballot.

If approved, the taxes will increase the hotel occupancy tax to 15% from 12%, double the parking lot tax to 10% and raise the sports ticket tax from its current 60 cents to 5% of the ticket price. All three taxes would be paid primarily by visitors.

Inglewood negotiators in November temporarily had to withdraw their arena proposal while they figured out how to pay for the deal that would give developers $35 million to help build the arena. The city also would lease land for $2 million a year from Hollywood Park and turn it over to arena builders for $1 a year.

The Lakers and the Kings continue to play at the Great Western Forum in Inglewood and will be there until at least September 1999.