News Summary
As of April 1, 2025, California’s sales tax rates have increased, with some cities hitting as high as 11.25%. Los Angeles County’s sales tax has risen from 9.5% to 9.75% due to Measure A, aimed at funding homelessness services. Other regions, including San Diego County and the Bay Area, are also experiencing tax hikes. Residents should be aware of what’s taxed and what’s not amidst these changes as the state works to support local communities and address housing issues.
California Sales Tax Increases Take Effect – Some Cities Hit 11.25%!
Hey there, residents of sunny California! If you’re out and about in our vibrant state, you’re going to notice some changes when you reach for that shopping bag or grab a bite to eat. That’s right, California’s sales tax rates have officially jumped starting April 1, 2025. And believe it or not, some cities are reaching sales tax rates as high as 11.25%!
A Closer Look at Los Angeles County
For those living in Los Angeles County, especially in the unincorporated areas, you’ll want to check your wallet. The sales tax has risen from 9.5% to 9.75%. This increase is thanks to the approval of Measure A during the recent elections. So, what is Measure A all about, you ask? It’s a new funding initiative aimed at tackling homelessness services and perhaps setting a path to a brighter future for many in need.
For a bit of context, Measure A replaces the previous Measure H, which was set to run out in 2027. The new measure raises the tax rate by an extra quarter of a cent, making it half a cent altogether. Can you imagine how much that little boost could help? It’s estimated to generate over $1 billion annually for our communities!
Where Do the Funds Go?
Now, if you’re wondering what happens to all that new money, listen up! Around 60% of the funds from Measure A will be directed toward county homelessness services. The remaining 40% is earmarked for housing production, making sure that this funding does more than just boost numbers but actually helps people find stable homes.
Local Tax Increases in Effect
San Diego County’s Changes
While some big proposals for San Diego County—like the 0.5% increase for all or a jump from 7.75% to 8.75% for San Diego city—got turned down, many residents can expect to feel the impact of the existing taxes.
Bay Area Residents to See Changes Too
What’s Taxed and What’s Not?
That’s the scoop for now, folks! Stay tuned for more updates as we navigate these changes together. Remember, every penny counts, especially when it comes to helping our communities thrive!
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