Sales Tax Increase in Los Angeles County to Fund Homeless Services

News Summary

Starting April 1, Los Angeles County’s sales tax will increase from 9.5% to 9.75% due to the implementation of Measure A. This new tax aims to generate around $1 billion annually for homeless services, with 60% allocated to direct aid and 40% to affordable housing. Cities like Long Beach and Palmdale will see even higher rates, leading to concerns about the impact on residents and small businesses. The measure seeks to address homelessness in the county as it moves forward.

Sales Tax Increase in Los Angeles County to Fund Homeless Services Begins April 1

Los Angeles County is gearing up for a bit of a shake-up at the cash register, as a new sales tax rate takes effect starting April 1. The current sales tax, which stands at 9.5%, is set to jump to 9.75%. This increase is driven by Measure A, a voter-approved initiative aiming to bolster services for the county’s homeless population.

Understanding Measure A

Back in November 2024, voters decided to back Measure A as a replacement for Measure H, which was a quarter-cent sales tax dedicated to homeless services but is slated to expire in 2027. Now, with the approval of Measure A, it’s estimated that the county could rake in about $1 billion annually to support various homeless services.

So, what does that mean for you? Once Measure A goes live, approximately 60% of the funds are earmarked for direct county homeless services, helping those in need of shelter, food, and support. The remaining 40% will go toward housing production, facilitating the creation of more affordable housing options across the county.

Know Your Sales Tax Rate

While the countywide sales tax rate is changing, it’s important to remember that some cities within the county are set to see even higher rates. Long Beach will clock in at a whopping 10.50%, while Palmdale and Lancaster will raise the bar with the highest rates in the county at 11.25%. With these local measures, the sales tax can vary dramatically depending on where you are making your purchases.

The increase will apply to a variety of common purchases people make every day, including furniture, toys, clothing, and electronics. However, it’s good to know that some items will remain exempt from the sales tax, as outlined by the California Tax Service Center.

Comparing with Other Counties

It’s worth noting that the highest countywide sales tax rate in California currently sits at 10.25% in Alameda County. So, Los Angeles is just a smidge off from that mark with its new tax rate.

What Measure A Aims to Achieve

So, what’s the goal of all these tax dollars? Measure A plans to focus on a few key areas: reducing the number of people who fall into homelessness, increasing the availability of affordable housing units, and helping individuals transition from encampments into permanent housing. It’s a hefty task, but supporters believe it’s a necessary step in addressing a pressing issue in the county.

Opposition and Concerns

Stay Informed

So, if you’re out and about shopping in Los Angeles County come April, remember to factor in that new sales tax rate, and think about how your purchases could contribute to tackling homelessness in the area!

Deeper Dive: News & Info About This Topic

• Los Angeles Times
• KTLA
• NBC Los Angeles
• Fox 11 Los Angeles
• Wikipedia: Sales Tax in the United States
• Encyclopedia Britannica: Sales Tax