Sales Tax Increase in Los Angeles County Starting April 1

News Summary

Los Angeles County is set to experience a sales tax increase from 9.5% to 9.75% starting April 1, 2023. This change, driven by Measure A, aims to enhance services addressing homelessness within the community. Measure A replaces the previous Measure H and is expected to generate over $1 billion annually for various initiatives, including affordable housing and mental health support. Local businesses and consumers may feel the pinch of this tax hike, especially in cities with higher rates.

Los Angeles County Sales Tax Hike Kicks Off April 1

Residents of Los Angeles County, get ready for a little change in your wallet! Starting April 1, the sales tax in our sunny area is set to rise from 9.5% to 9.75%. This increase is all thanks to a new initiative known as Measure A, which has been approved by voters and aims to significantly enhance homeless services throughout the county.

The Scoop on Measure A

What’s the deal with Measure A, you ask? Well, it’s replacing the previous Measure H, which had been in place to tackle homelessness and was set to expire in 2027. But now, with Measure A stepping onto the scene, that quarter-cent sales tax is going up to a half-cent. Crucially, this change is expected to generate more than $1 billion in annual revenue.

This revenue is earmarked to help fund a variety of initiatives aimed at addressing homelessness in our community. The tax will remain in effect indefinitely unless voters decide to repeal it in the future.

Goals for a Better Community

So, what are the primary goals of Measure A? Here are the highlights:

• Reducing homelessness and providing support for individuals struggling with mental health or substance use issues.
• Increasing affordable housing options within the county.
• Helping individuals make the transition from encampments to permanent housing.

When it comes to the financial breakdown of Measure A, around 60% of the proceeds will go directly to funding homeless services, while the remaining 40% will be put toward increasing housing production.

How This Affects You

You might be wondering how this is going to impact your everyday purchases. Well, the sales tax increase means that the price tag on everyday items like furniture, clothing, and electronics will see a slight uptick. If you were already feeling the pinch, this could add to the burden. However, some items are exempt from this new sales tax, but specifics depend on state law.

Sales Tax Rates Across the County

• Cities currently sitting at a sales tax rate of 10.25% will jump to 10.50%.
• Palmdale and Lancaster are set to climb from 10.25% to a staggering 11.25%, making it the highest sales tax rate in the county.
• Long Beach will see a new sales tax rate of 10.50%, while Santa Monica’s sales tax will rise to 10.75%.

Local officials are concerned that the increase might negatively impact both businesses and consumers, particularly those who are living on fixed incomes and already struggling to make ends meet.

What’s Next?

The California Department of Tax and Fee Administration is already spreading the word about the new tax rates through a Special Notice. As you prepare to navigate this new era of increased sales tax, it’s important for businesses and shoppers alike to brace for the changes.

While the goal of Measure A is to help those in need and promote the well-being of loveable Los Angeles County, how it will truly affect everyday lives remains a point of watchful consideration. So, mark April 1 on your calendar and prepare for the changes ahead!

Deeper Dive: News & Info About This Topic

HERE Resources

Sales Tax Hike Hits Los Angeles County Starting April 1
Los Angeles Metro Launches Major Upgrades to the G Line

Additional Resources

• KTLA: Los Angeles County Sales Tax Hike Takes Effect
• Los Angeles Times: Los Angeles County Sales Tax Increase
• NBC Los Angeles: LA County Increases Sales Tax to 9.75%
• Fox LA: LA County Sales Tax Rate Increase
• Wikipedia: Sales Tax in the United States