Backers of a ballot initiative to eliminate LA’s $800 million business tax took actions to end it after officials negotiated a new deal

Proponents behind a ballot initiative aimed at eliminating the city’s $800 million-plus business tax began actions today to rescind the proposal after Los Angeles elected officials negotiated a deal between business and labor to phase-in wage increases for certain hotel and airport workers.

The move came after months of behind-the-scenes discussions, according to Mayor Karen Bass, who said she was called on by both sides to close the deal.

Los Angeles City Council members were expected to approve amendments to effectuate the proposed changes in wage increases.

Bass and other city officials previously warned that eliminating the business tax would devastate the city financially.