Long Beach : Sales Tax Incentive Offered to Attract Major Retailers
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In an effort to woo big business to Long Beach, the city will offer a tax break to new retail businesses that yield more than $5 million a year.
The incentive, approved unanimously by the City Council, will return to businesses 50% of the sales taxes generated in excess of $50,000.
City officials hope the incentive will attract major retailers, such as auto dealerships and shopping malls, to the city, particularly to 19 acres of vacant land in northern Long Beach. Residents who now travel to Cerritos, Lakewood and other surrounding cities would be encouraged to spend more of their dollars in Long Beach, councilmen said.
The incentive also can benefit existing businesses that plan major additions.
“I do think this gives us an opportunity to be more competitive,” Councilman Clarence Smith said.
Councilman Ray Grabinski cautioned the council that the incentive ought to be reviewed in two years. “This is one of those fixes that may be a help, but it’s not a fix-all,” he said. “They help a few and hurt the many.”
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