LA County Sales Tax Increase: What You Need to Know About Measure A

New Sales Tax in LA County

• 💰 A quarter-cent sales tax increase took effect across Los Angeles County on April 1st, raising the total sales tax rate to 9.75%.
• 🎯 This measure, approved by voters in November, is estimated to generate approximately $1 billion annually.

Funding for Homelessness Services

• 🏠 The primary goal of the new tax is to address the homelessness crisis, with about 60% of the generated funds allocated to homelessness services.
• 🏘️ An additional 36% will support the creation of a new housing agency, while the remainder will fund prevention and affordable housing programs.
• 📈 Officials are required to set and track 5-year goals for spending and progress.

Impact on Consumers

• 🛒 The sales tax increase affects a wide range of goods and services, from groceries to car purchases.
• 💸 For example, a $200 grocery bill now includes $1.95 in sales tax, an increase of 50 cents compared to the previous rate.
• 📈 While a quarter-cent may seem small, it can add up over time for consumers.

Measure A Replaces Previous Tax

• ⏳ This new measure replaces a 2017 tax that was set to expire in 2027.
• 🎯 Measure A aims to reduce the number of unhoused individuals, increase affordable housing units, and facilitate transitions from encampments.

City-Specific Variations

• 🏙️ While the county-wide increase is a quarter-cent, some individual cities are experiencing higher tax hikes due to their own approved measures.
• 📈 Cities like Lancaster and Palmdale will see their sales tax rates jump by a full percentage point, reaching 11.25% and 10.75% respectively.
• 📍 Glendora also approved a quarter-cent increase, bringing its rate to 10.75%.