LA County Sales Tax Rises to 10.25%, Highest in Nation
A half-cent sales tax increase went into effect Thursday, impacting everyday purchases across the county.
Los Angeles County residents are facing a higher tax burden starting Thursday, as the local sales tax rate has increased from 9.75% to 10.25%. This hike, approved by voters through Measure ER in June, now makes the county's sales tax rate the highest in the nation.
The revenue generated from this increase will be allocated to the county's general fund, with priorities including healthcare services and safety-net providers, such as county hospitals, clinics, and public health programs, according to the LA County Department of Public Health.
Some residents expressed concern about the timing of the tax increase, noting the already high cost of living in the region. The impact is being felt by locals in their daily spending habits. "I’m feeling it across the board, from groceries to everything in between," one resident told Fox 11.
In several cities within LA County, including Santa Monica, Pasadena, and West Hollywood, the combined sales tax rate will exceed 11%.
The California Department of Tax and Fee Administration provides updated information on sales tax changes across the county. The sales tax increase is expected to remain in effect for five years, with exemptions for groceries, prescription medications, and certain medical equipment.
Residents are also contending with rising gas prices, with one individual noting that prices once considered high are now the norm. The overall cost of living in California has been a growing concern, with factors like housing prices and mortgage rates exacerbating financial pressures.
Tonantzin Carmona, director of economic policy at The Century Foundation, highlighted that Californians face significant financial challenges compared to other parts of the country. She pointed to high housing costs, mortgage rates above 7%, and gasoline prices averaging over $6 in California, compared to the national average of about $4. Carmona suggested that beyond long-standing issues like housing shortages, broader economic factors, including federal economic policies and international conflicts, are contributing to the financial strain on families.
"No one can really start here anymore," another resident commented. "It’s definitely not affordable anymore, especially if you’re starting out."