NORTHEAST VALLEY : Wachs Says City Pays Unnecessary Taxes

In his latest charge of waste in City Hall, Los Angeles Councilman Joel Wachs said Friday that the city pays millions of dollars annually in sales taxes on shipping costs of supplies and equipment that it is not obligated to pay.

In a news conference, Wachs said the city is excluded from paying sales taxes on shipping costs but pays it nonetheless because vendors who sell supplies to the city do not itemize the shipping costs on bills.

Wachs, who represents the northeast area of the San Fernando Valley, introduced a motion Friday asking that the city’s purchasing procedures be amended to require vendors to list shipping charges separately.

He said the city purchases about $700 million worth of supplies and equipment annually. If all the purchases were to include shipping charges that were taxed, that would amount to $7.5 million, Wachs said. But he acknowledged that most of the purchases do not include shipping charges and the overpayment is closer to $2 million annually.

Wachs, who recently took over leadership of the council’s Governmental Efficiency Committee, criticized the city last week for making bulk purchases of supplies and materials that he said could be bought much cheaper at retail stores.