Council cancels sales tax election

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The head of the committee that proposed the measure to the City Council says she supports the council’s decision to remove the item from the ballot. In other action, the council informally forms a quasi-city agency to raise private funds for parks and ball fields.

By Hans Laetz/Special to The Malibu Times

The City Council voted unanimously Monday to call off the half-cent sales tax election that had been scheduled for June. Responding to a plea from the Chamber of Commerce, which was opposed to the tax measure, the council agreed to jump-start an already-planned inventory of business activity in Malibu to see what sort of taxes or fees can be imposed without harming business activity.

Two weeks ago the council had voted 4-1 to put a half-cent sales tax measure on the ballot, with the tax revenue going toward “law enforcement, parks and open space acquisition, facilities and community services.” Last week, the Chamber of Commerce board voted to oppose the tax. President Christine Rodgerson said the main reason was that no economic study had been done to determine how a tax would affect local businesses.

Arnold G. York, publisher of The Malibu Times and chamber vice president, repeated the chamber’s demand for an economic study during the council meeting.

“We’re not quite sure where we are and we’re not quite sure where we’re going and what we can support,” he said. Councilmembers agreed that the city needs to complete a comprehensive survey of business activity in Malibu, first proposed in 2000, before setting any new business taxes.

An unusual coalition of environmentalists, park advocates, homeowners and business interests had hoped to use the tax revenue money to invest in parkland, open space and other investments in civic life. Laura Rosenthal, who had led the committee that proposed the tax to the council, said the committee supported canceling the special election.

“We also would like to see the results of the economic study,” she told the council. “But our goal is to raise revenue for the city, and we will be back.”

Also at Monday’s meeting, the council agreed to set up a second quasi-city agency to raise private funds for parks and ball fields. Two weeks ago, the council approved the idea of a separate legal entity, controlled by the council, to solicit major contributions for a community arts and education facility.

Councilmembers agreed to postpone formal action on the two quasi-city agencies until volunteers in the two groups can decide how much city involvement they want.

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