LA Labor Movement Prepared to Defeat Tourism Industry-Backed Business Tax Repeal that would Gut City Services

Repeal of Gross Receipts Tax Puts City Fire, Sanitation, and Other Core City Services at Risk in Favor of Corporate Greed

LOS ANGELES—Today, the Los Angeles City Clerk’s Office announced that the hotel and airline-backed proponents of the ballot initiative to repeal the Gross Receipts Tax have met the signature threshold to qualify for the ballot. This corporate-backed measure to repeal the business tax would slash $742 million from the General Fund annually, decimating city services.

In response, the Los Angeles County Federation of Labor, SEIU 721, UNITE HERE Local 11, SEIU-USWW, AFSCME District Council 36, The Engineers and Architects Association, and LAANE reaffirmed the Los Angeles labor movement’s commitment to defeating this irresponsible and damaging measure.

Fortunately, Los Angeles voters have the good sense to see through such a reckless measure, as shown by recent polling conducted by the Los Angeles County Federation of Labor.

“Our poll found that almost 70% of likely voters in November oppose repealing the gross receipts tax, with only a mere 22% in support,” said Yvonne Wheeler, President of the Los Angeles County Federation of Labor. “But even without the polling, we know that the working people of Los Angeles want our essential city services like fire, sanitation, and pothole and sidewalk repair funded—and we are committed to making sure our 800,000 members join us in defeating this reckless act of greed on behalf of corporations and airlines.”

The proposed business tax repeal is funded by airline and hotel interests, with major funding by United and Delta Airlines, which are exempt from the gross receipts tax. These same corporations spent millions to repeal the Olympic Wage in a failed referendum bid last June and are now wielding the business tax repeal against the City in an attempt to cut wages and healthcare for tourism workers.

“It’s beyond cynical that the major backers of this measure—which would devastate our city services—don’t even pay the tax they’re trying to repeal,” said David Huerta, President of SEIU-USWW. “Meanwhile, these same corporate interests have been lobbying the city to take money out of workers’ pockets by weakening the wages and healthcare that tourism workers won last year.”

“Repealing the Gross Receipt Tax is the epitome of corporate greed at the expense of Angelenos. Repealing the GRT will take away funding needed to fix LA’s streets and sidewalks and provide critical sanitation services,” said David Green, President of SEIU 721. “The GRT repeal will result in trash piling up on our city streets while businesses hoard money and exempt themselves from paying their fair share.”

“Angelenos depend on core city services as part of their everyday lives. Whether it’s for recreation in our city parks, education at our libraries, or the need for emergency service through our call centers, core city services provide our neighbors with the comfort that they need,” said Matt Maldonado, Executive Director of AFSCME District Council 36. Repealing the gross receipts tax would put all of this in jeopardy, and drastically reduce the quality of life for the residents of Los Angeles.”

“City employees are currently sacrificing their own pay due to budget shortfalls caused by overspending and years of declining revenues. Thousands of EAA members are taking unpaid days to keep the City staffed and maintain a baseline level of essential services for residents.

Eliminating a major source of City revenue would be catastrophic,” said Marleen Fonseca, Executive Director of the Engineers and Architects Association. “It would lead to further reductions in staffing, slower response times, delayed repairs, reduced oversight, and increased liabilities across Los Angeles. It would force the City to look into alternative revenue sources that would increase the cost of living for Angelenos. We unequivocally say NO to any corporate interests undercutting city services.”

“It is shameful that corporate interests are threatening to loot our city budget at a time when so many Angelenos are struggling with skyrocketing costs, from groceries to rent to gas prices,” said Victor Sanchez, Executive Director of LAANE. “Even more shameful is that these corporations have been using this threat to pressure our City Council into rolling back wages and healthcare for tourism workers. We know Angelenos will stand up to this negligent money grab at the polls, and we call upon our elected officials to do the same.”

While the tourism industry has poured millions into this ploy to decimate the city budget, the Los Angeles labor movement is advancing an initiative that would bring in over $500 million a year to benefit working people.

“The Overpaid CEO Tax would also fund tens of thousands of units of new housing for working families,” said Kurt Petersen, Co-President of Unite Here Local 11. “It’s also a surefire way to defeat the business tax repeal, because with just one more vote, it will cancel it out.” In contrast to the gross receipts tax repeal’s dismal support, the Overpaid CEO Tax polls at 78% among likely November 2026 voters.