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Prestige Parking Owes $73 Million in Withheld Taxes That Could Pay for City Services on the Chopping Block.
City workers slapped a heavy public fine on a parking lot that owes taxpayers $73 million according to a report from the Office of Finance.
On Tuesday, March 16, workers placed the spotlight on Prestige Parking and the top 50 debtors that owe the city a combined $123 million and unveiled a plan to collect on the money to save parks, neighborhood prosecutors and other programs on the chopping block.
Fact Sheet: Collect City Debts Now.pdf
“Every day that Prestige Parking doesn’t pay, that is $73 million worth of services that city residents won’t receive,” said Environmental Specialist Cathie Chavez.
City workers delivered an orange parking boot and a poster-sized parking violation to the son of Sohrab Sahab, the owner of Prestige Parking. Sohrab Sahab was convicted last year for collecting, but failing to pay, hundreds of thousands of dollars annually in parking occupancy taxes for 29 parking lots, according to the City’s Attorney’s website.
Sahab’s son currently owns SC Prestige Parking in Downtown Los Angeles, where LA City workers delivered the parking boot and the $73 million ticket.
“If I don’t pay rent, I get booted out of my house. If we don’t pay our bills, our electricity, water and power gets turned off. The City has an obligation to go after deadbeat debtors owing the city millions,” said tree surgeon Art Sweatman.
The top three debtors in Los Angeles are parking lot operators charged with underreporting Parking Occupancy Tax and Business Tax collected on all “auto park businesses” where any vehicle is parked or stored and a charge is made. A city audit by the city uncovered the withheld taxes but the city has been unable to collect.
Workers represented by the Coalition of City Unions propose an aggressive collection strategy to help strengthen city coffers and avoid the narrow-sighted approach of laying off 4,000 employees to solve a $485-million deficit next year.
“Think how many layoffs can be avoided with $73 million,” said Steven Kehrmeyer, a civil engineer in the Bureau of Street Lighting. “This money needs to be collected right now.”
Local media reported on the action. View KTLA’s coverage here.
SEIU 721 Event Photo Gallery