Los Angeles City Council member Adrien Nazarian is proposing a new tax on nonprofit membership clubs such as private golf courses that he says could raise up to $250 million a year for city services and capital improvement projects.
A proposed parcel tax of $4 per square foot would require voter approval. Nazarian plans to introduce a resolution to the City Council on Friday to move to put the parcel tax measure on the Nov. 3 ballot.
The measure would target large, private recreational membership-based clubs and similar facilities within city limits. If the council approves Nazarian’s proposal, it will go to the city attorney’s office to draft a resolution and ordinance to get it on the ballot.
The money generated can be used for capital improvements, such as curb cuts, fixing potholes and sidewalks, and repaving damaged streets and roads; supporting the film and television industry in the city with tax credits and permit fee relief; And a program that provides financial assistance for first-time homebuyers in L.A., according to a copy of Nazarian’s proposal seen by The Times.
“Such a framework could provide a meaningful and ongoing revenue stream to support critical investments including affordable housing production and preservation, homelessness response, infrastructure improvements, economic development initiatives including support for the film and entertainment industries, and programs that expand pathways to homeownership for Angelenos,” the proposal states.
According to a colleague, Nazarian was inspired to take this measure after listening to podcast from Author Malcolm Gladwell questioned why private country clubs, which are closed to the public, pay so little in property taxes.
Under Proposition 13 in 1978, annual property tax increases are limited and cannot be reassessed at market value until the property is sold, meaning that private golf courses and other properties that rarely change hands benefit from relatively low property taxes.
