The Lynwood City Council has approved a ballot question that will enact a tax on for-profit hospitals operating in the City of Lynwood. The money generated from the proposed three (3) percent gross receipts tax will be used to provide programming and funding the assist residents recover from COVID 19, develop affordable housing, protect, maintain and enhance vital public safety, street, park and recreation services and other vital services to the residents. The proposed tax is only on for-profit hospitals like St. Francis, which recently changed ownership. What was once a non-profit hospital that had a charitable focus and was a tremendous partner to the community will now be a for profit facility that seeks to maximize revenue. This business tax will not financially impact the city’s residents nor patients of St. Francis. In fact, approval of this measure will allow the City to provide greater programs and services to the community. All of the funds generated by the tax on the hospitals will go into the city’s general fund. If the voters approve the tax, it will allow the city to sustain—and perhaps even expand– the services that have been impacted by theCOVID-19 public health emergency which has hit the city very hard.
Here is the approved ballot language that will be on the November 5 ballot.
Enactment of Hospital Tax to Protect Public Safety and Vital City Services
To protect, maintain and enhance vital public safety services, infrastructure needs including streets, utility maintenance, park and recreation services including programs for youth and seniors, and other essential services, shall the City of Lynwood impose a three percent (3%) privilege tax on the gross receipts of for-profit hospitals operating within the City of Lynwood? All funds to be deposited in Lynwood’s general fund.