A proposal for a ballot measure that would create a tax on billboards and other outdoor advertising got an initial rejection by a Los Angeles City Council committee on Monday.

The ballot measure, which is aimed at helping close a $300 million budget deficit, would levy a 12 percent tax on billboards, supergraphics and other forms of outdoor advertising if voters approved. It would generate an estimated $24 million a year for the city’s general fund.

Facing a Nov. 3 deadline to qualify for the March ballot, administrators drafted the measure last week and sent it to the budget and finance committee. After testimony from sign companies and business groups all opposed to the tax, the committee voted to reject the proposal.

The proposal for the ballot measure will be heard by the council’s Rules Committee on Oct. 27 and may later move to the full council for a final decision.