Los Angeles Mayor Antonio Villaraigosa on Monday signed a measure to cut business taxes for Internet-based firms, many of which last year saw their tax rate jump from the lowest in the city to the highest.
The change, unanimously approved by the City Council on March 5, will affect about 1,400 businesses in Los Angeles.
Some of those companies had threatened to leave the city if the tax rate was not reduced. Villaraigosa signed the ordinance at the Westside Internet firm Shopzilla, one of the companies that had considered relocating.
"Not only is this ordinance good business policy, it is a proactive step toward increasing revenues and committing the City to long-term fiscal health," Villaraigosa said in a written statement. "We are sending a message loud and clear that Los Angeles will fight to keep good-paying and high-growth jobs in our city."
Council President Eric Garcetti, who wrote the ordinance, said the change was critical because Internet-based businesses by their very nature are nimble and can "pack up and move anywhere in the world very quickly."