Sales Tax in Los Angeles County Set to Rise: Key Details

News Summary

Starting April 1, 2025, Los Angeles County will increase its sales tax from 9.5% to 9.75%. This change is part of Measure A, approved by voters to fund homeless services and affordable housing. Significant portions of the revenue will address homelessness, while some areas in the county will face even higher rates. The increase has drawn mixed responses from local officials, sparking a debate about the impact on residents and businesses. It is crucial for taxpayers to understand the implications as they prepare for the upcoming change at the register.

Sales Tax in Los Angeles County Set to Rise: What You Need to Know

Starting on April 1, 2025, folks living in Los Angeles County will notice a little extra charge when they checkout at their favorite stores. The sales tax is going up from 9.5% to 9.75%. This change is all thanks to Measure A, a new tax initiative that voters approved back in November 2024. But why the increase? Well, it’s all about combating homelessness in the area.

Digging Deeper: What Is Measure A?

Measure A is stepping in to replace Measure H, which is a quarter-cent sales tax that was originally set to expire in 2027. Instead of just a quarter-cent, this new measure introduces a half-cent tax. It’s believed that this increase will bring in over $1 billion annually—that’s a whole lot of dough—to fund essential services aimed at helping the homeless population.

Where Is the Money Going?

So what will all that money be used for? The funds raised from Measure A will be allocated primarily to homeless services, making up around 60% of the budget. The remaining 40% will go towards affordable housing initiatives. This is great news for those who have been worried about homelessness and the availability of affordable places to live.

Sales Tax Rates Around the County

While the new sales tax rate for Los Angeles County is 9.75%, some areas will see even higher rates. For example, the cities of Palmdale and Lancaster will have the highest sales tax rate in the region, hitting a whopping 11.25%. In Long Beach, the rate will jump to 10.50%, while neighboring Riverside and Orange counties will set their new rates at 7.75%.

Need a bargain? Ventura County will have the lowest sales tax rate in Southern California at just 7.25%. It’s always good to know where you can save a few bucks!

What Kind of Goods Will Be Taxed?

With this sales tax increase, a range of items will be affected. This includes essentials like gas, clothing, toys, and furniture. And don’t think you’re getting off easy at the grocery store—prepared food will also be taxed, along with alcoholic beverages and dietary supplements. So, whether you’re filling up your car, shopping for clothes, or picking up takeout, you’ll need to keep this new rate in mind.

City Responses

Andrea Alarcón has voiced her opposition, arguing that this increase could be a burden to residents on fixed incomes and local businesses. On the flip side, Lancaster has introduced a program called “Shop, Drive, Earn,” aiming to lessen the tax’s impact on consumers and businesses. Sounds like they’re trying to find a way to balance the scales a bit!

Long-Term Implications

It’s important to note that this sales tax increase will be in effect indefinitely unless voters decide to repeal it in the future. This means that shoppers may need to get used to a higher rate for a while. As Los Angeles County works to tackle the challenges of homelessness, residents will be directly contributing through their everyday purchases.

Wrapping It Up

So, mark your calendars for April 1, 2025, and get ready for a small change at the register. It’s always essential to stay informed about how our local government is working to address pressing issues like homelessness and how it might affect our wallets.

Deeper Dive: News & Info About This Topic

• NBC Los Angeles
• Wikipedia: Sales Tax in the United States
• FOX LA
• Google Search: Los Angeles County Sales Tax Increase
• Los Angeles Times
• Google Scholar: Los Angeles County Sales Tax
• KTLA
• Encyclopedia Britannica: Sales Tax
• LAist
• Google News: Measure A Sales Tax