CD12 Blog

Keeping Car Dealerships and Jobs in Los Angeles

September 28, 2018

I would like to share with you a copy of my motion seconded by Councilmember David Ryu and Councilwoman Monica Rodriguez to permanently exempt New Car Dealers from the City’s Gross Receipts Tax.

I first introduced legislation in 2011 to exempt New Car Dealers from Los Angeles’ Gross Receipts Tax as a way to spur growth from a key industry. New Car Dealers provide thousands of good paying jobs and significant economic revenue for our City.

Since the exemption of New Car Dealers from the City’s Gross Receipts Tax, 14 new dealerships have located in the City and seven more are under construction or pending. There have been 10 major expansions of existing dealerships.  

The City has also seen the total amount of tax revenue generated from New Car Dealers increase by over $30 million.

Due to the overwhelming success of this legislation, I feel it’s critical to permanently eliminate the January 2020 sunset clause of exempting New Car Dealers from Los Angeles’ Gross Receipts Tax.

I will continue to keep you updated throughout the legislative process.Read the full  motion, here.