COUNCIL APPROVES TAX RELIEF FOR L.A.'S HMOS.Byline: Rick Orlov Daily News Staff Writer Under the threat that HMOs would leave the city, the Los Angeles City Council  The Los Angeles City Council is the governing body of the City of Los Angeles, California, United States. gave final approval Friday to a new method of limiting
taxes for those businesses.
Acting without comment, the council voted 9-5 for the law, which will reduce the tax bills of five companies - four located in Warner Center - from $25 million to $7 million a year. ``This has been a long road, and we are delighted to have an ordinance A law, statute, or regulation enacted by a Municipal Corporation. An ordinance is a law passed by a municipal government. A municipality, such as a city, town, village, or borough, is a political subdivision of a state within which a municipal corporation has been that very clearly established the basis on which we pay taxes.'' ``We think this is fair. It is good for the HMOs and good for the city,'' Gagan said. The council refused to change the tax rate on which the HMOs are charged, but did agree they should not have to pay taxes for income from outside the city limits. There are similar provisions for other businesses operating in the city. Opponents to the change have argued it gives an unfair tax break to health maintenance organizations and not other businesses. The HMOs began their campaign in October 1996, threatening to leave the city unless some changes were made in the city's tax policy. Among the firms were Blue Cross of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , CareAmerica, Health Net and Prudential Prudential is the name of two different companies and buildings named after them: Companies:
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