News Summary

Residents of Los Angeles County will see their sales tax hike from 9.5% to 9.75% starting April 1, 2025, due to Measure A. This measure aims to provide over $1 billion annually for homelessness services and affordable housing. While the additional revenue targets pressing issues, reactions are mixed among local leaders, with concerns about the impact on residents and businesses. Taxpayer adjustments will be necessary as they navigate these new costs in daily shopping.

Changes Looming for Los Angeles County: Sales Tax Set to Rise

Big news for residents of Los Angeles County: starting on April 1, 2025, the sales tax is gearing up to increase from 9.5% to 9.75%. This change comes as a result of Measure A, a measure that voters approved in November 2024. Let’s break down what this means for you, your family, and your wallet.

What Is Measure A?

Measure A is designed to replace the quarter-cent sales tax known as Measure H, which was set to expire in 2027. Instead of a small increase, Measure A introduces a new half-cent tax on sales. This change is not just about raising taxes; it’s aimed at tackling the pressing issue of homelessness in Los Angeles County. It’s expected to provide a whopping over $1 billion annually for homelessness services and affordable housing.

Where Does the Money Go?

So, where exactly will all this extra cash go? Approximately 60% of this revenue will be directed toward homeless services, while around 40% will fund affordable housing. In a city with a growing homelessness crisis, these funds are expected to play a crucial role in making a difference.

Sales Tax Rate Details

Now, not every city in the county will be affected the same way by this increase. For example, the cities of Palmdale and Lancaster will have the highest sales tax rate in the county at a striking 11.25%. Meanwhile, Long Beach is looking at a new sales tax rate of 10.50%. On the flip side, neighboring Riverside and Orange counties are setting their rates at just 7.75%, while Ventura County will have the lowest sales tax in Southern California at 7.25%.

The Impact on Daily Shopping

For those wondering what this means at the cash register, it’s good to be prepared. The sales tax increase will impact a variety of everyday items, including gas, clothing, toys, furniture, and even prepared food. Yes, you read that right—if you’re picking up a quick meal or shopping for new clothes, the tax increase will affect those purchases too! Additionally, expect to see a tax on alcoholic beverages and dietary supplements.

Responses from Local Leaders

As with any tax increase, there are mixed reactions. Not everyone thinks this is a good idea. Palmdale City Councilmember Andrea Alarcón has expressed her concerns that this tax hike will unduly burden residents, especially those on fixed incomes, and could negatively impact local businesses. In response to the tax’s potential fallout, Lancaster has introduced an economic incentive program called “Shop, drive, earn” to help alleviate the burden on consumers and businesses, which shows that communities are trying to adapt.

What’s Next?

The sales tax hike will stay in effect indefinitely—unless voters choose to repeal it. This means that residents of Los Angeles County will need to be mindful of how they budget in the coming years as they adjust to the new sales tax rate.

In summary, while the tax increase is positioned as a solution to the county’s homelessness crisis, it also brings challenges for many residents as they navigate rising costs. Time will tell how this decision plays out in the lives of Angelenos, but one thing is clear: it’s going to be a topic of conversation until 2025 and beyond.