New L.A. County Sales Tax Hits, Jumping to 9.75% and Higher
As of Tuesday, L.A. County residents will see a sales tax increase on purchases as a result of a voter-approved measure that will support county-run homeless services. Sales tax will jump from 9.5% to 9.75%.The L.A. County approved a half-cent sales tax called Measure A in November, a replacement for the 2017 quarter-cent sales tax called Measure H, which was supposed to expire in 2027. The tax is estimated to generate more than $1 billion annually.Measure A will remain in effect until it's repealed by voters. This policy will affect all residents in unincorporated areas and cities that did not impose their own voter-approved tax. Approximately 60% of proceeds will go to county homeless services and 40% will be allocated for housing production.
According to L.A. County's Homeless Initiative, Measure A aims to reduce the number of homeless and those living on the streets with mental or substance abuse disorders. It also stressed increasing availability of affordable housing.Some cities within L.A. County already have higher sales tax rates and as a result, Measure A will increase those rates higher than 9.75%. Some of these cities include Burbank, Culver City, Malibu and West Hollywood, who's rate will increase from 10.25% to 10.5%.Cities such as Manhattan Beach, Downey and Lancaster approved their own rates in combination with Measure A. Their rates will be raised to 10.25%, 10.50% and 11.25% respectively.Compton, Pico Rivera, Santa Monica, South Gate and Lynwood were all previously exempt from Measure H's 0.25% sales tax, but their rate will now increase to 10.75% as they are now subject to Measure A.Everyday purchases such as furniture, toys, clothes and electronics can be taxed as a result of the measure. Some items — such as groceries, sales to the government, presrcription medicine and certain medical devices and items paid for with EBT cards — are exempt, according to the California Tax Service Center.
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