Sales Tax Increases by One Percent

The local sales tax for Temple City and a majority of the cities in Los Angeles County increased by one percent on Wednesday, April 1.

Temporary tax increases were part of a legislative budget deal struck by California lawmakers in February. The state was then facing a multi-billion dollar budget deficit for the 2008-2009 fiscal year.

Sales tax is now 9.25 percent, an increase from 8.25 percent.

According to the California state Board of Equalization, “the 1 percent tax rate increase will expire on either July 1, 2011, or July 1, 2012, depending upon whether the voters approve the proposed Budget Stabilization constitutional amendment.”

California voters will vote on several budget-related measures, as part of the state-approved budget package, in a special statewide election on May 19.

In the City of El Monte, the sales tax went up 1.5 percent. The current sales tax rate is 9.75 percent, the highest in the San Gabriel Valley.

For residents of Los Angeles County, the April sales tax increase is just part one of two raises this year. Beginning July 1, the sales tax rate will again increase by 0.5 percent.

Los Angeles County voters supported Measure R, a county measure aimed at raising money for transportation purposes, by a 67.9%-32.1% margin on November 4, 2008. Measure R required 2/3rds support of voters before it could pass. It will expire in 30 years.

In Temple City, citizens voted 58.3%-41.7% in support of Measure R.

For now, the sales tax is 9.25 percent, but it will increase to 9.75 percent come July 2009.


This article was written by Chris Du. It will be published in the Temple City Voice on April 3, 2009.


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