Los Angeles City Councilmember Adrin Nazarian is proposing a new tax on nonprofit membership clubs such as private golf courses, saying it could raise up to $250 million a year for city services and capital improvement projects.
The proposed parcel tax of $4 per square foot would require voter approval. Nazarian plans to introduce a motion to the City Council Friday to initiate steps to put a 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 motion, it would next head to the city attorney’s office to prepare a resolution and ordinance to get it on the ballot.
The funds generated could be used for capital improvements, such as curb cuts, fixing potholes and sidewalks, and repaving damaged alleys and streets; supporting the film and television industry in the city with a tax credit and permit fee relief; and a program that offers financial assistance for first-time homeowners in L.A, according to a copy of Nazarian’s motion viewed 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 industry, and programs that expand pathways to homeownership for Angelenos,” the motion states.
According to an aide, Nazarian drew inspiration for the measure after listening to a podcast from author Malcolm Gladwell that questioned why private country clubs, which are closed to the public, manage to pay so little in property taxes.
Under Proposition 13 in 1978, annual property tax hikes are limited and can’t be reassessed to market value unless the property is sold, meaning that private golf courses and other properties that rarely change hands benefit from relatively low property taxes.