California’s Sales Tax Increased in Some Areas
In the midst of rising prices, high oil prices, and soaring housing costs, sales taxes in some areas of California have also been raised. Starting from October 1st, consumers in 88 cities in Los Angeles County and over 120 “unincorporated areas” will be paying higher sales taxes.
According to the tax increase proposal Measure ER, the general sales tax rate in Los Angeles County has been raised from 9.75% to 10.25%, with some cities in the county seeing rates go up to 11% or even higher. In other words, when purchasing taxable goods or services like clothing, appliances, or dining out in Los Angeles County, consumers will now have to pay a bit more in taxes at the checkout.
The tax increase proposal, introduced by County Commissioners Holly Mitchell and Hilda Solis in January of this year, called for voter approval to raise the general sales tax by 0.5% for a duration of 5 years until October 1, 2031.
County officials stated that this tax increase proposal will generate approximately $1 billion in additional tax revenue annually, aiming to offset the funding cuts in state and federal healthcare programs. The only commissioner who opposed the tax increase, Kathryn Barger, pointed out that Los Angeles County already has one of the highest sales tax rates in the country and that residents should not be burdened with additional costs when they are already struggling.
During the elections on June 2nd, the proposal experienced a turnaround in post-election vote counting, with increasing support leading to its narrow passage. With the tax increase becoming a reality, the new law will be applicable to all 88 cities and over 120 “unincorporated areas” communities and residential areas in Los Angeles County.
According to the latest tax rate notice released by the California Department of Tax and Fee Administration (CDTFA), many Chinese neighborhoods in the San Gabriel Valley are also facing tax hikes.
For instance, cities such as Alhambra, Arcadia, Temple City, Baldwin Park, Monterey Park, El Monte, San Gabriel, and Artesia will all see their sales tax rates rise to 11% starting from October 1st.
The sales tax rates in Azusa and South El Monte will both increase from 10.75% to 11.25%. Currently, Los Angeles County has 56 cities with sales tax rates ranging from 11% to 11.75%.
Among all these cities, the highest sales tax rates are in the northern part of Los Angeles County, in cities like Lancaster and Palmdale, where the rates reach up to 11.75%.
At a time of this tax increase, residents in Southern California are still grappling with pressures on various aspects of their cost of living, including gas prices exceeding $6 per gallon and median home prices surpassing $900,000.
Some local residents express that the cost of living in Los Angeles is already high, and with the continuous increase in taxes in recent years, the accumulated burden is becoming heavier.
Los Angeles County voter Gonzales suggests that rather than continuously raising taxes to fill the healthcare funding gap, it would be more beneficial to investigate and stop the massive fraud and waste in the healthcare system.
Additionally, hundreds of cities in California raised their sales taxes last April, with some cities seeing an increase of up to 1%, and individual areas approaching 2%. In Los Angeles County, voters previously passed the county-wide tax measure “Measure A,” leading to a significant jump in sales taxes.