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. “Los Angeles is missing out on millions in sales tax revenue that is benefiting other cities instead because so much contracting is done with non-local vendors,” Galperin said. “I see an opportunity to change that, which would both support local businesses—including small …
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