BUSINESS FEE HIKES DELAYED GUN DEALERS FAIL TO GET SAME RELIEF AS OTHERS.

Byline: James Nash Staff Writer

The Los Angeles City Council backed off Wednesday from a controversial proposal to raise some fees on businesses by factors of 10 or more, agreeing instead to study the fees for another three months.

Gun dealers, however, did not get any relief.

City officials sparked an outcry from many business owners recently when they informed hundreds of businesses that they would have to pay as much as $2,000 by Dec. 31 for an annual police permit. Previously, the renewal fees were no higher than $296.

Although the City Council approved the increases in September 2001, many business owners complained they had not been informed prior to receiving the city's letters warning them to pay by Dec. 31.

The council voted Wednesday to postpone the due date to March 31, 2003, and to ensure that the fees are based on the actual cost of providing police services to the taxed businesses.

However, council members did not extend the relief to gun shops, which still will owe $2,000 by Dec. 31. Councilmen Jack Weiss and Nate Holden said the city needs to crack down on firearms vendors, which they blamed in part for violence in Los Angeles.

``If that sends a message that the city of Los Angeles is business-unfriendly to gun dealers, well, hallelujah,'' Weiss said.

Gene Lumsden, vice president of the company that owns Turner's Outdoorsman in Reseda, said the vote represents another slap at legitimate gun dealers.

``The City Council is doing something that's discriminatory against an industry based on their likes and dislikes,'' Lumsden said. ``That's a sad state of affairs.''

Spared from the increases, at least for now, were businesses such as masseuses, pawnbrokers and tow truck operators - about 2,400 citywide.

Diane Taylor, co-owner of Traders Loan and Jewelry in Reseda, said she was relieved the city will delay collecting the higher fee but continues to believe the proposed rate is out of line.

``The length of time isn't the issue,'' she said. ``The amount of the fee is the issue.''

In a separate vote, the City Council imposed higher fees on the 190 lobbyists licensed to do business in Los Angeles. Lobbyists now will pay $400 to register with the city, up from $300, and an additional $75 per client, up from $50.

City officials noted that fees for lobbyists haven't increased in eight years despite the increasing expense of regulating them.

The increase in police permit fees was expected to generate $1.7 million a year while the lobbyist fee increase is projected to bring in about $35,000 a year.

Both proposed increases come as city officials grapple with expected cuts in money received from Sacramento for libraries, meals for senior citizens, traffic-relief measures and redevelopment projects.

The state is projecting a deficit as high as $34.8 billion. City officials said Wednesday they are bracing for cuts to local programs but haven't received information on what, if any, reductions are coming.

State legislators already have proposed cost reductions to cover about $6 billion of the deficit. The reductions do not significantly affect Los Angeles, City Administrative Officer Bill Fujioka said.

The council's Budget and Finance Committee was scheduled Wednesday to consider increases to fines for the owners of dogs and cats not spayed or neutered - but delayed a vote on the proposal because only two of five council members on the committee were present.