LA COUNTY FIRE TAX
WHAT: On December 3rd the County of Los Angeles Fire Department (County LAFD) will be presenting a proposal to the Los Angeles County Board of Supervisors for approval of a parcel tax initiative. The tax would be set to appear before voters on the March 2020 ballot. If approved, the initiative will place between a 6¢ to 8.9¢ parcel tax per square foot of a building and include a 100,000 square foot cap. This parcel tax will affect all residential development, commercial and industrial buildings. Only exemptions for government and non-profit buildings, and qualifying seniors would apply.
 
The tax is estimated to raise $100,000,000 annually and also allows for a 2% annual adjustment. The tax does not have a sunset date and is anticipated to exist in perpetuity. This initiative would apply to all those in the unincorporated Los Angeles County and 12 other LA County cities who contract with County LAFD. Because this initiative creates a new tax it would require a 2/3rds vote for approval.
BACKGROUND: In addition to the many unique taxes and fees that are imposed on residential development, an annual County LAFD parcel tax was already passed in 1997. Most recently, there have already been two other County parcel taxes passed impacting development:

  • Measure A in 2016: A 1.5¢ per square foot parcel tax was passed for parks.
  • Measure W in 2018: A 2.5¢ per square foot parcel tax was passed for stormwater.

The County LAFD met with BIA-LAV on September 30th, at that time they did not have any specific information and BIA shared concern over impacts to housing and the timing of the March ballot. BIA met with County LAFD twice over the last month in stakeholder meetings and they still do not have draft ballot language available for our review and want to proceed with a March 2020 date. They provided us with information linked below. The draft language won't be available to the public until two weeks before the Board of Supervisors hears their proposal on December 3rd.
 
The costs for housing production continues to increase based on regulatory costs and market expenses such as, labor, building materials, and land. This tax would be another hurdle in the building process.
NEXT STEPS: As language becomes available we will distribute the information to our members and provide an action alert for testimony opportunities closer to the December 3rd hearing date. For more information contact Director of Government Affairs Diana Coronado.

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