- Business leaders submitted 79,300+ signatures to qualify LA tax repeal.
- Measure would repeal the tax on business revenues.
- Only measure this year lowering taxes and boosting Angelenos’ pay.
A COALITION OF business and hospitality leaders submitted more than 79,300 signatures to the city supporting a repeal of the city’s $742 million tax on business revenue for the November ballot. The American Hotel & Lodging Association supports the ballot measure.
The measure, titled "Repeal of Los Angeles City Business Gross Receipts Tax," follows a months-long grassroots effort that secured nearly twice the required signatures, according to a joint statement.
"Today marks a turning point for a business community that refused to be passive. After years of policy decisions that threaten our industry’s viability, we stood up, organized and acted,” said Rosanna Maietta, AHLA’s president and CEO. “At a time when the city is proposing multiple tax increases, this will be the only measure on the ballot that lowers taxes and puts money back into residents’ pockets."
For decades, the GRT has hit small and minority-owned businesses and contributed to higher costs for goods, the statement said. Repealing it will provide relief to residents, protect jobs at companies facing high operating costs and restore a more competitive business climate. Los Angeles is one of three California cities with a gross receipts tax, which has driven employers to neighboring markets.
Nella McOsker, Central City Association’s president and CEO, said repealing the tax supports main streets and small businesses that sustain neighborhoods.
“These businesses face the same affordability crisis as families across the city and by eliminating the GRT we're removing one more reason to relocate or shut down,” she said. “This repeal gives local entrepreneurs a real chance to stay in Los Angeles, create jobs, reinvest in communities and keep commercial corridors active.”
The measure has broad voter support, the statement said. This year, it is the only measure on the ballot that lowers taxes, addresses inflation and increases take-home pay for Angelenos.
“Los Angeles is facing an affordability crisis — repealing the gross receipts tax tackles it head-on. It will be the only measure on the ballot that lowers taxes," said Stuart Waldman, Valley Industry & Commerce Association’s president. “This repeal is necessary to halt the exodus of businesses, recruit new employers and secure our economic future.”
In May, AHLA urged Los Angeles Mayor Karen Bass to veto the proposed tourism wage ordinance, warning it would trigger an “economic tsunami” as the city’s tourism faces wildfires, stalled international travel and a slow pandemic recovery.
