Los Angeles Mayor Antonio Villaraigosa said Tuesday that new businesses in the city should continue to enjoy a tax holiday.
The policy gives new businesses a three-year break before they must pay the city’s gross receipts tax. The mayor said it’s helped to persuade companies like Google, Blackline Software and Costco to create jobs in L.A.
Los Angeles started the business tax holiday last year, but it’s set to expire next year. City Council members Mitch Englander, Eric Garcetti and Tom LaBonge have proposed extending the policy for another four years.
Villaraigosa wants to go a step further and extend it indefinitely. He proposed the idea during a speech to Chamber of Commerce members in Woodland Hills.
He said Los Angeles collects some of the highest gross receipts tax rates in the region. So it has a tough time competing with cities with that don’t levy such taxes, like Glendale and Santa Clarita, for businesses looking to start up or relocate.