The Hermosa Beach City Council met briefly Tuesday morning to put the finishing touches on a tax-hike measure that will go on the November ballot, to compete with a citizens’ tax-hike initiative that has been repudiated by its own sponsor.
The surreal election season features the citizens’ initiative, which would raise taxes steeply on some nightspots, and is now being opposed by the activist who gathered the signatures to place it on the ballot, and the city’s measure, which would impose more modest increases on nightspots and some other businesses, and was brought to the fore to compete with the now-wounded citizens’ initiative.
Hermosa Beach has not increased any of its business license taxes in 23 years.
Under activists Jim Lissner’s initiative, the highest business license taxes could soar from about $2,000 to as much as $640,000 a year, according to a city analysis. Lissner has since said the initiative would prompt unwanted lawsuits against the city.
The city measure would cap the business license tax for an individual nightspot at $8,000. The measure would impose a $5,000 license tax for a nightspot serving alcohol, with live music and dancing, that closes after midnight five or more nights a week.
In addition, all businesses would pay a 20 percent surcharge if they are located downtown, or a 10 percent surcharge if they are on upper Pier Avenue. Alcohol-serving establishments would pay a 5 percent surcharge if they are located in other parts of town, and other businesses not located downtown or on upper Pier would escape the surcharge.
