Hi 2UrbanGirls,
The latest article you published Inglewood projecting $35M revenue shortfall for current fiscal year about the City’s finances sparked my curiosity to look further into the Admissions Tax Revenue that was highlighted.
According to the City, “Hollywood Park Company [SoFi Stadium, YouTube Theatre] has committed $15 million in Admissions Tax Revenue adjusted for inflation” which appears to be a blatant lie, at best.
Why? Well according to the City’s Municipal Code the Admissions Tax rate is set as follows:
“In the sum of fifty-six cents ($0.56) upon each admission for which a charge is made to any enclosure, auditorium or place when such admission is for the purpose of attending a live sporting, athletic, theatrical, contest or presentation or any other live entertainment type exhibition, spectacle or participation of any kind; provided that effective on July 1st of each year, the rate will be adjusted upward by the percentage of annual change in the Los Angeles/Long Beach Consumer Price Index (CPI) as identified each June 1st. Should the June 1st change in the CPI be a decrease over the prior year, the tax will remain the same.”
Inglewood Municipal Code Chapter 9, Article 9-6
According to state law, taxes can only be changed by voters, not the City’s elected officials via an agreement with entities operating within city limits. Additionally, these taxes are NOT adjusted for inflation. If this were the case, the city wouldn’t have placed two tax ballot measures before them a few years ago because they would have automatically adjusted each year.
When the City declared its fiscal emergency in August 2021 why didn’t the Finance Department have the wisdom to place the Admissions Tax before voters, in addition to the Real Estate Transfer and Transient Occupancy Taxes, as a way to increase revenue, especially with the Inglewood Transit Connector being another burden on the city’s infrastructure and budget if it’s built?
We are in June, and according to the City’s mid-year budget (above photo), NO Admissions Taxes have been collected since Quarter 1 of this current fiscal year (2023-2024) which ended January 31.
Mayor James Butts loves to “brag and boast” that he was the lone negotiator of these deals which looks like he missed a few economic classes when he obtained his Master’s degree in Business Administration and that the City’s Finance Department is just as inept.
Expenditures are up across the board and the elephant in the room is when our fire contract comes up for renewal which will no doubt increase the expenses for emergency services, particularly when the Intuit Dome comes online.
How much will be derived from that agreement?
Mayor Butts isn’t good for this City and it’s time his colleagues on the council and the residents wake up and face these cold hard facts.
Inglewood firefighter
1 Comment
Thanks for keeping an eye on the city for all of us.