LA council moves to send tax boost to voters

Los Angeles City Council moves to send half-cent sales tax increase to voters in March

Associated Press

LOS ANGELES (AP) -- Los Angeles is hoping taxpayers are in a generous mood.

One week after voters approved a statewide sales tax increase pushed by Gov. Jerry Brown, the Los Angeles City Council on Tuesday tentatively approved placing a half-cent boost on the March city ballot.

The city of nearly 4 million people has been wrestling with long-running budget gaps and soaring health and pension costs for retired city workers.

Proposition 30 approved last week will increase the sales tax in the city from 8.75 percent to 9 percent on Jan. 1.

The city proposal would kick that rate to 9.5 percent — among the highest in the nation.

The proposal approved 10-4 must return for a second vote next week.

It would raise an estimated $200 million a year.

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