With the stroke of a pen Monday, Mayor Antonio Villarigosa eliminated the which has driven dozens of car dealerships, jobs and sales tax revenue out of Los Angeles and into neighboring cities.
"Those are jobs we want to keep," said Councilman Eric Garcetti. "We want you to be able to support your families. We want you to be able to go out and spend that money in our restaurants."
“We’ve been out of the city of Los Angeles for many years,” Councilman Mitch Englander said last week.
Twenty-five years ago, there were 147 new auto dealers in Los Angeles. Today there are only 52. Dozens of new and used auto dealers are located in North Hollywood, particularly along Lankershim Boulevard.
Englander, Garcetti and Villaraigosa called for the tax break during a news conference last November to announce that Beverly Hills Porsche would move into the city.
"With the savings our dealerships realize from the elimination of the business tax, we'll hire and train new employees, invest in equipment and infrastructure, and continue to give back and support our local communities," Lenny Sage, of the Sage Automotive Group, said at his new Kia dealership where the signing took place.
Officials say the money they lose from the gross receipts tax will be offset by the extra sales tax.