Los Angeles Sales Tax Rate Increase on Ballot
- Sales Tax News
- Feb 22, 2013 | Will Frei
UPDATE 3.6.13: Los Angeles residents voted down the half-cent sales tax hike.
On March 5 the residents of Los Angeles California will vote on whether or not to raise the city's sales tax by a half a percent. Measure A, if approved, would use the revenue generated by the tax hike to "offset severe and repeated State cuts" and provide funding for services such as emergency response, after-school programs, and road repair.
For and against
The sales tax increase is projected to generate $215 million during the 2013-2014 fiscal year, a year in which the city faces a $216 million deficit. Supporters of Measure A, such as Police Chief Charlie Beck and Mayor Antonio Villaraigosa, see the revenue increase as vital to preventing further city cuts and layoffs.
Opponents of the proposal argue that the city should focus on creating new jobs and that a new tax will hurt a struggling economy. Eric Garcetti, one of the candidates for mayor: "I'm sick of just cutting and taxing. It is a race to the bottom, and if we don't get serious about growing our economy, we won't have the sort of city we deserve in future years." Los Angeles' sales tax has already increased to 9.0% this year with the statewide enactment of Proposition 30.
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