L.A. to Sue California Over Lost Car Tax Revenues

[kskiska]

LOS ANGELES (Reuters) - The Los Angeles City Council and county Board of Supervisors voted on Tuesday to sue the state of California to recover hundreds of millions of dollars in revenues lost when newly installed Gov. Arnold Schwarzenegger rescinded an unpopular increase in car taxes.

The two councils authorized their attorneys to join other municipalities seeking to restore the lost funds, which in Los Angeles County amounts to $2 million a day and is used to pay for fire, police and other services.

Schwarzenegger met with state Senate leader John Burton on Tuesday to discuss ways to make up for the estimated $350 million per month in lost revenues to municipalities.

(snip)

Los Angeles City Attorney Rocky Delgadillo said the city was reluctant to sue but had been "backed into a corner" by the prospect of losing $150 million in the coming fiscal year.

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http://www.reuters.com/newsArticle.jhtml;jsessionid=ZUX0JLCBCG55CCRBAEOCFFA?type=topNews&storyID=4004770

[pinniped]

1. No doubt LA is losing big. I think there are more cars in LA than...

any other US city. How many are legally registered is another thing.

Where is the money to pay LA going to come from should they win?

[aquart]

2. This is adorable.

[Nomad559]

3. Fresno ( Freeper City ) to sue state for VLF funds

The Mayor Is pissed. :evilgrin:

http://mywebpages.comcast.net/nomad559/VLF.wmv

[dusty64]

4. Interesting.

:kick:

[havocmom]

5. Glad to see city and county governments learned something from

the Reagan years. Governments cut funds at higher levels and the counties/cities are left high and dry. Local politicians end up taking the heat for decisions made by holders of higher offices to ensure their own re-electability. Glad local level pols are gonna play roungh this time.

My grandma used to say "You pay for what you need, whether you buy it or not." US taxpayers need to wake up and realize the infastructure they all depend on costs money and shut the ***k up with the whining about taxes.

[Ernesto]

10. Sounds like your Granny would be a flop as a Reublican politician

The problem: too honest.

[nn2004]

6. Hope they win but why not double city sales tax until then?

Also an increase in city property tax would help backfill the shortage. The people will understand that it's need to keep the city and social programs running in this time of need. Just raise the taxes now and work out the details later. Meanwhile the city workers, homeless and hungry need the tax collections so they need action now.

[Robb]

7. sales tax is just a tax on the poor

People with money will just make their major purchases out-of-state.

I don't, actually, see a solution for California.

[cally]

9. Property taxes do not go directly to the city

They are allocated back to them by the State. The State took property tax revenues after Prop. 13 to balance the budget. Then they started short changing the cities and counties. The car tax revenues were supposed to make up the shortfall.

Tax districts (city, county, school district, etc.) can impose special fees with a two-thirds vote of the district. For instance, I pay a special fire tax, a couple of school taxes, and I think a recycling tax. The State in all it's wisdom has now decided to re-allocate some school fees. So even some of these special taxes will not necessarily increase funding.

[David__77]

8. let Schwarzenegger come up with the money.

He's the one who jeopardized it, let HIM say where it is to come from, and let him bear the political consequences. No passing the buck!