Glendale City Council Split on Taxes

At the Glendale City Council's first budget study session, the city council was presented with ideas for new taxes, including a transfer and parcel tax.

The other proposed taxes included a business license tax and a marijuana tax proposal.

Council members appeared split on the appropriateness of the taxes. Mayor Elen Asatryan, in particular, stated she would not support new tax measures but encouraged staff to focus on other means to improve city revenue. 

Background

The Glendale city budget would meet its reserve goal for the next few years; however, starting in 2028, reserves are expected to drop. 

As part of its budget process, the city council received a presentation on some forms of "revenue enhancement" available to the city. 

Revenue enhancement is another term for taxes. It can include other money-making items, but it refers to taxes in this context. 

The presented items included a proposal for a transfer tax or a parcel tax.

Both taxes specifically target properties and place the burden primarily on property owners, but by extension, their tenants too. 

The presentation did not include a specific proposal; however, we recognize that any parcel or transfer tax is a non-starter. 

The proposal referenced the cities of Culver City and Santa Monica. Notably, ULA was absent from the staff analysis. 

The other tax considered was a business license tax, which would increase the cost of doing business in the city. And the other was a marijuana tax. 

The marijuana tax, in particular, caused some consternation among council members because the city does not currently allow the sale of cannabis. 

It was presented as a "just in case" tax. 

How It Impacts You and the Next Steps

No new taxes are welcome. However, parcel taxes and transfer taxes, in particular, are non-starters. These taxes specifically target properties. 

Our members have already suffered at the hands of Measure ULA and the region's other transfer taxes. 

The policies have also failed to bring in the promised revenue. The reality is that transfer taxes stifle growth and inhibit investment. 

With a specific proposal, we could tell members what their new tax bill would be. But we know it would not be good to have such taxes in place. 

Fortunately, with opposition from the Glendale Association of Realtors, the Apartment Association, and BOMA/GLA, the transfer tax and parcel tax lack majority support on the city council. 

Still, we cannot count on victory yet. The final decision on proposed revenue enhancements will be at the June 4th budget adoption hearing. 

In the meantime, we must keep up the pressure against these taxes.

You can help! Email the city clerk and council to tell them that transfer and parcel taxes harm economic growth in the city.  

And make plans to speak at the June 4th meeting. 

In the meantime, stay connected with BOMA on the Frontline.