LOS ANGELES—The City of Los Angeles could generate millions of dollars in additional tax revenue by putting more emphasis on giving municipal contracts to local businesses, a move that would also support the city’s economy and create jobs, City Controller Ron Galperin said May 20.
Galperin sent a letter to the mayor and city council, saying city agencies paid $7 million in sales taxes that went to other California jurisdictions for commodity purchases between the 2018 and 2020 fiscal years due to out-of-area contracts. During that same period, the city paid just $4.1 million in sales taxes through local contracts that went back into the city’s general fund.
