LA County sales tax rate increase effective April 1

LOS ANGELES - Starting April 1, residents and businesses in Los Angeles County will be paying a higher sales tax rate.

The sales tax rate will increase from 9.5% to 9.75% due to a Los Angeles County adjustment.

What we know:

The increase is a result of Measure A, the Los Angeles County Homelessness Services and Affordable Housing Ordinance, approved by voters in November 2024. 

This measure imposes a countywide one-half percent (0.50%) sales tax on every $1 of goods sold in LA County. 

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It aims to support homeownership, provide rental assistance, and fund various services for vulnerable populations, including mental health and addiction treatment.

At the same time that voter-approved Measure A increases the sales tax in LA County, supervisors voted to create a regional department to coordinate homeless services.

The backstory:

Measure A replaces the Measure H countywide sales tax, resulting in a net increase of one-quarter percent (0.25%) on all taxable sales in Los Angeles County. That means the Measure A funds that would have gone to LA City's Homeless Services Agency—almost $350 million a year, close to half of their total budget—will be taken over by the county.

The California Department of Tax and Fee Administration has issued a Special Notice regarding the new tax rates, available on their website.

Why you should care:

The sales tax increase will impact consumers and businesses in LA County, affecting the cost of goods and services. 

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The additional revenue generated by Measure A is intended to address critical social issues, including homelessness and affordable housing, benefiting the broader community.

What they're saying:

Nythia Raman, just one of several LA City Council members who spoke at the Board meeting, echoed what many in the public are asking: "What good does it do to move the money from one bureaucracy to another?" 

To that, Supervisor Barger explained that county agencies have been able to more effectively demonstrate that the money they are getting is making a difference, adding that LAHSA positions and functions will not disappear, just be transitioned to the county agency. 

Supervisor Holly Mitchell strongly asked for more metrics from the new agency.

However, the type of data she would like to see readily available to the public—how many people ended up on semi-permanent beds, how many of those went on to permanent housing, and for how long—are difficult to gather. The data has to be acquired from each provider, and a system to deliver the information to the county and the public will most likely not be in place by Jan. 1.

What's next:

Residents and businesses are encouraged to review the Special Notice from the California Department of Tax and Fee Administration for detailed information on the tax rate change. 

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The county will continue to monitor the impact of Measure A on local services and funding.