Sales Tax Increase in Los Angeles County to Support Homeless Services

Categories: California Business NewsCalifornia News

Los Angeles city street bustling with shoppers in light of the new sales tax increase.

News Summary

Beginning April 1, residents of Los Angeles County will see an increase in the sales tax from 9.5% to 9.75%. This change is part of Measure A, aimed at generating approximately $1 billion annually to fund services for the homeless. The additional revenue will primarily support county-run homeless services and the development of affordable housing. While some areas in the county will face even higher tax rates, proponents argue that this is a necessary step to address homelessness, though there are concerns about the impact on small businesses and residents with fixed incomes.

Sales Tax Increase Hits Los Angeles County to Aid Homeless Services

Los Angeles County is getting ready for a change that will affect your wallet. Starting April 1, the sales tax will go up from 9.5% to a new rate of 9.75%. This increase comes as part of Measure A, a measure that was approved by voters last November to help fund county-run services for the homeless. It’s set to replace the current Measure H, which is a quarter-cent sales tax for similar services that will expire in 2027.

What’s the Financial Scoop?

Measure A is estimated to bring in around $1 billion each year to help tackle homelessness in the county. This money will be divided up, with about 60% going directly to county homeless services and the remaining 40% dedicated to producing new housing options. The goal? To go after the root of homelessness and provide meaningful solutions rather than temporary fixes.

When Will it Expire?

Measure A has been set up to stay in effect until voters decide to repeal it. This gives the county a lengthy opportunity to implement and possibly expand service programs focused on getting people off the streets and into stable living situations.

Varying Tax Rates Across the County

9.75%, some areas are going to feel the pinch even more. For example, if you’re shopping in Long Beach, get ready for a whopping 10.50% sales tax. And if you’re in Palmdale or Lancaster, brace yourselves for the highest rates in the county at an eye-watering 11.25%. With various cities adding their own local measures to the mix, shoppers should check ahead to see what rates they’ll be hitting at the register.

What’s Affected?

Why Measure A? The Bigger Picture

Opposition in the Air

A Look at Other Counties

10.25%. So, while Los Angeles County is climbing up the ranks, it’s important to note that residents in other areas are already experiencing higher rates.