Pasadena : Rebates for Auto Dealers

The city’s auto dealers will be eligible for sales tax rebates under an ordinance tentatively approved Tuesday by the Board of Directors.

Under the measure, the city’s Housing and Development Department must first establish a redevelopment project in order to legally return tax money to dealers within the project boundaries.

Dealers in the redevelopment project area who wish to build or expand their showrooms could apply for a rebate equaling up to 50% of the sales tax generated by the new facilities. The rebates could continue up to 10 years from the date of the construction.

The ordinance was passed in an effort to keep the city’s 16 auto dealers from leaving for auto malls in neighboring areas. Pasadena’s dealerships provide the city $3 million a year in sales taxes.