Introduction to Sales Tax Increase
Get ready for sticker shock in Los Angeles County. Starting tomorrow, the sales tax goes up to 9.75 percent.
This will affect everything from your grocery bill to big purchases like cars and electronics. And for some cities like Palmdale and Lancaster, it is even higher.
Current Sales Tax Rates
As of now, the sales tax in LA County is 9.5 percent. That’s going up to 9.75 percent after voters approved Measure A in the November election, which will give more funding to homelessness issues.
City-Specific Sales Tax Rates
The cities of Palmdale and Lancaster currently have a 10.25 percent rate. But tomorrow, that goes up to 11.25, the highest rate in the entire county and the region.
The city of Long Beach is at 10.50 percent, Riverside and Orange counties are at 7.75 percent and Ventura County is at only 7.25 percent.
Reason for Sales Tax Increase
The reason why there is such a steep gap for Palmdale and Lancaster is because voters in both cities also made their voices heard in the November election. They approved the sales tax going up to keep more dollars to grow and improve local programs, public safety and infrastructure.
Economic Incentive Programs
The city of Lancaster said in part in a statement that their “’Shop, drive, earn’ economic incentive program is designed to help offset the impact on both shoppers and businesses, especially for larger purchases. This initiative is part of our broader commitment to stimulate economic activity and provide real benefits to our residents.”
Opposition to Sales Tax Hike
However, not everyone is excited about this. Palmdale City Councilmember Andrea Alarcón told NBC4 that she was the only elected official in the Antelope Valley who opposed the sales tax hike.
An op-ed about her decision said in part that “This will disincentivize local buying, hurt local and small businesses, and deter tourism. The people of palmdale cannot afford an additional tax on day-to-day expenses. seniors and those on fixed incomes cannot afford it. I cannot afford it.”
Comparison of Sales Tax Rates
Nonetheless, between the county sales tax going up and their own cities’ sales taxes going up tomorrow, Palmdale and Lancaster will have higher rates than cities like Malibu, Manhattan Beach and Inglewood.
Conclusion
In conclusion, the sales tax increase in Los Angeles County will have a significant impact on residents and businesses alike. While the increase is intended to address homelessness issues and fund local programs, it is likely to have far-reaching consequences, including increased costs for consumers and potential effects on local economies.
FAQs
Q: What is the new sales tax rate in Los Angeles County?
A: The new sales tax rate in Los Angeles County is 9.75 percent, effective April 1.
Q: Which cities have the highest sales tax rates?
A: Palmdale and Lancaster have the highest sales tax rates, at 11.25 percent.
Q: Why did voters approve the sales tax increase?
A: Voters approved the sales tax increase to fund homelessness issues and local programs, such as public safety and infrastructure.
Q: How will the sales tax increase affect consumers?
A: The sales tax increase will result in higher costs for consumers, potentially affecting their purchasing power and ability to afford everyday expenses.
