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Tax Reform Bill to Be Reintroduced

September 19, 2000|KAREN ROBINSON-JACOBS

Assemblyman Gil Cedillo (D-Los Angeles) plans to reintroduce state legislation that was a key component of the Los Angeles business tax reform program, an aide to Cedillo said Monday.

The measure would require the state to share with cities information on who pays state taxes, said David Galaviz, legislative director for Cedillo. The state already shares such information with the IRS, state governments across the country and the government of Mexico.

A bill to require the information sharing, AB 1992, went down to defeat in the final minutes of the just-completed legislative session. Cedillo plans to reintroduce the legislation in December or January, Galaviz said.

In the meantime, members of the Los Angeles panel charged with reforming the city's antiquated business tax program said they are working with the city clerk's office to find alternative ways to get the information that would have come from the state Franchise Tax Board had the measure passed.

The defeat of the bill was "important but not devastating," said Mel Kohn, who heads the city's Business Tax Advisory Committee. "There are alternatives to get to the same place."

Committee member Hilary Norton-Orozco said the panel still plans to propose selected tax cuts when it issues its report later this year. By proposing tax cuts in growth industries, the committee hopes to lure more companies to the city.

"Experience has shown that when the business community is catered to in terms of tax relief, it draws in businesses," said Norton-Orozco. "Tax reform is not over by any means."

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