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New State Budget Will Bring a 9.75% Sales Tax to LA County

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Schwarzenegger takes down the Deficit Clock in front of his office | AP Photo/Rich Pedroncelli
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Finally, the state senate and assembly came to a compromise and passed the much needed budget. "Our work is not over," tweeted Governor Arnold Schwarzenegger. "We were in a crisis. But crisis provides opportunity for real reforms for California." The plassed budget has four main aspects, which Scwharzenegger compares to a four-legged stool: spending reductions, revenue increases (aka taxing you more), use of the economic stimulus and government efficiency.

At the street level, we'll feel it the most with the 1% sales tax increase, which will begin on April 1st. Currently, LA County has an 8.25% sales tax, but in November voters passed Measure R--the transportation tax--allowing the county to raise it to 8.75% on July 1st. Now with the additional state sales tax bump, we'll see it at 9.75% for a few years.

Also, the vehicle license fee will nearly double and state income tax will increase by 0.5%. The Sacramento Bee has a special calculator so you can figure out your additional expenses. We just clocked in at $260 a year.