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Thursday, Mar 28, 2024

The Numbers Guy

At the Valley Industry and Commerce Association’s 55th annual general meeting on December 9, well-known Valley businessman Mel Kohn was presented with the Harmon Ballin Award as recognition for his work in helping to pass business tax reform in Los Angeles. The award, created in 1991 in memory of Ballin, a former VICA officer, civic leader and philanthropist, recognizes VICA members who have served individuals and the community within the San Fernando Valley. Kohn is co-chair of the Business Tax Advisory Committee, which was formed five years ago to advise the city on overhauling its business tax system. Passed on November 17, the reform package will allow for $92 million in tax relief, eliminating taxes for 60 percent of current ratepayers. It reduced the number of taxpayer categories from 75 to seven, and offered specific relief for the entertainment industry, and gives a 15 percent across the board tax cut to all businesses. Kohn has also been a practicing public accountant since 1970. Question: Who helped the most in reforming the business tax? Answer: At first it was (former city councilman) Mike Feuer, who was chair of the budget and finance committee, and Rocky Delgadillo, who was appointed from the mayor’s office. When we first started (in 1999) there was a flourish of activity. We had support from them just to get the first exemptions passed, for example for businesses under $5,000. The committee drew up a blueprint for tax reform. We really didn’t have a lot more activity until the new election when we had Mayor Hahn and Wendy Greuel, who both worked hard on business tax reform. In 2001 the election brought on new council people and at that point Wendy Greuel had a very strong interest in business tax reform and there were several that were also campaigning on business tax reform. The mayor also supported several tax reform measures. The second phase of tax reform really started then. The council, at BTAC’s recommendation reinstated the ad hoc committee on business tax reform, of which Councilmember Greuel was originally the chair and very active. After that Councilmember Cardenas took over and was very active. Both BTAC and VICA had said that we want tax reform by October 31, so I really give them credit for moving everybody in city government along to meet that date. It wasn’t just an idle date, it was set because we wanted some reform to take effect January 1, which is what happened. You had various people throughout all these years supporting tax reform, but Wendy Greuel has always been in the forefront of tax reform. Q: Who are you supporting for mayor? A: I have not committed, I don’t believe any of the BTAC members have because we’re still committee members. Q: Whoever it is, what do you hope the mayor who is elected is going to do for the Valley? A: First I think they have to address things citywide, but secondly they can’t neglect one neighborhood over the other. Q: What makes you such a staunch business advocate? A: Well, when I first joined VICA, it really came from the firm here, we really collectively wanted to give back to the community. One day I was reading the newspaper and I saw VICA and I didn’t know what it was, so I just called them. It seemed to make sense, the Valley Industry and Commerce Association, and it was something I felt I could contribute to. It was just my way of giving back to the community. I was on the local issues committee and the issue of tax reform came up and maybe because I was a CPA, I was chosen and that’s how it started. It’s important that if you’re part of a group that has a goal, you work hard to fulfill that goal, it just takes people. Which is what I said in city council, the reason that BTAC was successful was that you chose hard-working, smart people. Q: Do you think more businesspeople are aware of VICA now? A: I can’t really answer that. But I do think with the issues they’ve been addressing there’s higher visibility for VICA and I think with the coalition which they spearheaded with the L.A. Chamber and the CCA, a lot more people, not necessarily here in the Valley but citywide, understand VICA, and that’s good. Q: You seem to have maneuvered through City Hall pretty well with BTAC, what did you learn about working through the bureaucracy? A: I think we just applied business sense and kept our goal in mind. I think communication with people is probably the most important thing, and realizing that they are civil servants and working for the government and we are business people and that many times we operate differently. You can still disagree but it’s important you work together. I think that’s one thing we really found working with different offices in city hall. We could have differences but we could talk about them and respect each other. Q: What do you think the relationship is between the Valley and the rest of the city two years after secession? A: I don’t know if I can answer that because I’m seeing it at a different level. We finished business tax reform which turned out to be a citywide issue, and then you read in the paper a couple days ago where you have LAUSD and you have all these classroom seats taken from the Valley. Well that’s a problem. I still think that everybody’s neighborhood needs representation and ours is the Valley. Q: What do you think is the biggest locally originated problem for the business community? A: We’re dealing with business tax, so we’re headed in the right direction. There are other issues that I am not involved with, but it just appears in talking to people they are really (concerned about having) the ability to expedite projects through planning. Q: What’s changed about the accounting profession since you began your career? A: I think the major thing has been technology, at least affecting the economics of practice. I think just in the last several years there is a shortage of accountants, demand exceeds supply, and I think that’s a big issue. We’re very fortunate to have in the Valley CSUN, which has a terrific accounting department, it’s just the number of students who are getting into accounting. I think if you talk to every firm in the Valley, even in the city, our biggest issue is just training and hiring people. I think the years of the IPO took a lot of people away from public accounting to private accounting. Now that the bubble’s burst, I think we’re seeing a return to normalcy. SNAPSHOT – Mel Kohn Title: Partner in accounting firm Kirsch Kohn & Bridge Age: 64 Education: Bachelor’s degree in accounting, 1963, University of California, Los Angeles. Personal: Married, two children, two grandchildren Most Admired Person: “I admire the principles of (former UCLA basketball coach) John Wooden, just because of integrity, and whatever organization you’re in it requires teamwork.”

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