Topline:
Consumers in L.A. County today will start paying an additional quarter-penny in sales tax on every dollar of goods they purchase. The sales tax hike is the result of Measure A, approved by voters in November. Revenue from the ordinance will help fund homeless services and affordable housing development throughout the county.
Why it matters: Measure A replaces Measure H, approved by voters in 2017, which earmarked a quarter-cent sales tax for homeless services. The latest measure essentially doubles the county’s homelessness budget and is expected to generate more than $1 billion annually.
What you'll pay: Under Measure A, the average L.A. County family will pay about $5 more each month in sales tax, according to the ordinance’s authors. Each $100 item subject to the sales tax will cost 25 cents more than it did previously. Sales tax rates vary by city. The new sales tax rate in the city of Los Angeles and unincorporated L.A. County is 9.75%, up from 9.5%.
What Measure A funds: A large portion of Measure A funding (36%) will fund affordable housing development through a new agency called the Los Angeles County Affordable Housing Solutions Agency. Measure A dedicates nearly $100 million to a fund to be distributed directly to L.A. County’s 88 cities. It also established oversight committees to audit how the money is being spent and set mandatory goals for service providers that receive the funding.
Consumers in Los Angeles County on Tuesday will start paying an additional quarter-penny in sales tax on every dollar of goods they purchase.
The sales tax hike is the result of Measure A — approved by 58% of L.A. County voters in November — which will help fund homeless services and affordable housing development throughout the county.
Measure A replaces Measure H, approved by voters in 2017, which earmarked a quarter-cent sales tax for homeless services. The latest measure essentially doubles the county’s homelessness budget and is expected to generate more than $1 billion annually.
The ordinance was written and backed by homeless service providers and nonprofit advocacy groups who argued that additional funding is crucial to reducing homelessness.
“Measure A wasn’t crafted by us,” said L.A. County Supervisor Janice Hahn. “It was crafted by the advocates. They were the ones that really helped the voters understand why they should again tax themselves basically — to try and solve this homeless crisis. And we thank the voters for doing this.”
Opponents of Measure A argued that the region’s massive homelessness spending hasn’t paid off. L.A. County homelessness increased by about 37% since Measure H went into effect.
There are approximately 75,312 unhoused people living in L.A. County, according to the Los Angeles Homeless Services Authority’s 2024 point-in-time count.
Unlike the previous sales tax measure, Measure A has no expiration date. The tax will continue to be collected until voters repeal it.
What you’ll pay
Under Measure A, the average L.A. County family will pay about $5 more each month in sales tax, according to the ordinance’s authors.
Each $100 item subject to the sales tax will cost 25 cents more than it did previously. Certain sales are exempt from sales tax, including edible groceries, prescription drugs and items purchased with EBT.
Even before Measure A was approved, some L.A. County cities had some of the highest sales tax rates in the country.
Rates vary by city, but the new county rate applies to all incorporated cities and unincorporated areas of the county, according to the California Department of Tax and Fee Administration.
- In unincorporated Los Angeles County and the city of Los Angeles, the new sales tax rates are 9.75%, up from 9.5%.
- In Long Beach and Glendale, the new sales tax rates are 10.5%, up from 10.25%
- In Lancaster and Palmdale, the new sales tax rates are 11.25%, up from 10.25%. (Those cities approved an increase of 0.75% tax in addition to the new countywide Measure A tax.)
It’s important for business owners to know what tax rate to collect and update their point-of-sale systems accordingly, state authorities said. Consumers should also know what rate they’re supposed to be charged.
Consumers and businesses can look up tax rates by address on the California Department of Tax and Fee Administration website. Business owners can sign up to receive updates from the agency.
New Measure A approaches
Measure A’s supporters promised it would help facilitate a new approach to homeless spending, with more focus on preventing Angelenos from falling into homelessness and holding homeless service providers accountable.
Unlike Measure H, which mostly funded homeless services, including shelters and street outreach, 36% of Measure A funding will fund affordable housing development through a new agency called the Los Angeles County Affordable Housing Solutions Agency.
Measure A dedicates nearly $100 million to a fund to be distributed directly to L.A. County’s 88 cities, the leaders of which can use it to fund local programs.
The new ordinance also established oversight committees to audit how the money is being spent, and set mandatory goals for service providers that receive the funding.
Several recent audits have found a systemic lack of accountability at the Los Angeles Homeless Services Authority, a regional homelessness agency funded by the city and county. Auditors said the agency has failed to appropriately monitor contracts with service providers or properly track spending.
The L.A. County Supervisors and city leaders are considering whether to cut ties with the Los Angeles Homeless Services Authority and take direct control of homelessness spending in the region.
