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AB 178 MAY END `BIG-BOX' BID WARS; RIVAL CITIES OFTEN COMPETE FOR STORES.


Byline: Jim Skeen Staff Writer

Legislation aimed at blocking municipal bidding wars for auto dealers and ``big-box'' retailers - like those that break out periodically between Lancaster and Palmdale - cleared the state Legislature A state legislature may refer to a legislative branch or body of a political subdivision in a federal system.

The following legislatures exist in the following political subdivisions:
 and now awaits the governor's signature.

Assembly Bill 178 - authored by Assemblyman George Runner George C. Runner, Jr. (born March 25 1952 in Scotia, New York) is a Republican California State Senator, who represents the 17th Senate District, which includes portions of Los Angeles County, San Bernardino County and Ventura County. , R-Lancaster; and Assemblyman Tom Torlakson Thomas A. "Tom" Torlakson (born 19 July 1949) is a Democratic politician from Antioch, California. He is currently serving his second and final term in the California State Senate. Torlakson represents the 7th District, which includes most of Contra Costa County. , D-Martinez - was approved by an Assembly with only one dissenting vote. The vote was for concurrence CONCURRENCE, French law. The equality of rights, or privilege which several persons-have over the same thing; as, for example, the right which two judgment creditors, Whose judgments were rendered at the same time, have to be paid out of the proceeds of real estate bound by them. Dict. de Jur. h.t.  on Senate amendments.

The bill prohibits a city, county or redevelopment agency from providing financial assistance to an auto dealership or a big-box retailer, defined as any store over 75,000 square feet, that is relocating from one community to another within the same market area.

The bill provides for exceptions if the receiving community offers the community that is losing the business a sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government.  revenue-sharing agreement.

``It makes no sense to start an expensive bidding war with a neighboring community in order to lure a big-box retailer already located in the same market area,'' Runner said. ``Since the taxpayers in both communities are equally utilizing these big retail stores and auto malls, there is no reason to waste taxpayer dollars in an attempt to move these stores a couple of miles down the road.''

The bill requires a study on its effects by the California Research Bureau. The measure also requires the bureau to provide the results of the study to the Legislature by 2004.

The bill's provisions end in 2005.

The cities of Lancaster and Palmdale had discussed the possibility of a sales-tax sharing agreement in an order to cut down on the bidding wars for big retailers, but the two cities could not agree on a formula.

The possibility of losing their Costco warehouse store to Palmdale prompted Lancaster officials to offer the retailer giant additional property for a proposed expansion. Lancaster is planning to pay between $3.5 million to $5 million to acquire property for Costco.

The plan, which will be considered by the City Council on Sept. 14, is roughly equivalent to a $5 million incentive the city of Palmdale had on the table for a store, Lancaster officials said.

Palmdale officials had expressed interest in seeing that incentive used to bring a Costco store to their city.

``This bill will prevent many of the bidding wars that occur between neighboring communities, while providing additional opportunities for communities to share sales tax revenue,'' Runner said.

The measure is opposed by the California Motor Car Dealers Association, car dealership This article is about car dealerships. For the indie pop band, see Dealership (band).

A car dealership or vehicle local distribution is a business that sells new cars and/or used cars at the retail level, based on a dealership contract with an automaker or
 chain CarMax, electronics store giant Circuit City, and the cities of Chula Vista Chula Vista (ch`lə), city (1990 pop. 135,163), San Diego co., S Calif., on San Diego Bay; inc. 1911.  and Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. .

Opponents of the bill say it unfairly singles out their businesses for the shortcomings A shortcoming is a character flaw.

Shortcomings may also be:
  • Shortcomings (SATC episode), an episode of the television series Sex and the City
 in the way the state funds municipal governments.

Supporters include the California State Association of Counties, the California Redevelopment Association and the California Business Properties Association.
COPYRIGHT 1999 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Daily News (Los Angeles, CA)
Date:Sep 5, 1999
Words:468
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