Beginning April 1, residents and businesses in Los Angeles County will see a rise in the sales tax rate from 9.5% to 9.75%. This adjustment comes as a result of Measure A, the Los Angeles County Homelessness Services and Affordable Housing Ordinance, which was approved by voters in November 2024.
Measure A imposes a countywide half-percent (0.50%) sales tax on every dollar of goods sold in the county. The additional revenue is designated for initiatives supporting homeownership, rental assistance, and services for vulnerable populations, including mental health and addiction treatment.
This new measure replaces Measure H, which had previously funded homelessness programs, leading to a net sales tax increase of 0.25%. The California Department of Tax and Fee Administration has issued a Special Notice outlining details of the tax rate change, which is available on its website.
Consumers and businesses in Los Angeles County should be aware of the increased costs associated with the new tax rate. While the measure aims to address significant social issues such as homelessness and affordable housing, it will also impact the overall cost of goods and services. Residents and business owners are encouraged to review the official notice for further details on how this change may affect them.
Earlier this year, House Republicans renewed efforts to introduce a national sales tax and abolish the Internal Revenue Service (IRS), framing the measure as a way to ensure illegal immigrants contribute taxes. Representative Buddy Carter (R-GA) will unveil the FairTax Act of 2025, a bill designed to overhaul the U.S. tax system by replacing the federal income tax with a 23% national sales tax.
The bill, obtained by the Washington Examiner, proposes eliminating the IRS and shifting taxation from income to spending. Carter argues the measure will capture untaxed spending from sources like illegal immigrants and the underground economy. According to Carter, this ensures fairness while reducing the government’s reliance on income tax collection.
