Support for LAist comes from
We Explain L.A.
Stay Connected

Share This

News

Raising the Sales Tax & Not for Transit

Stories like these are only possible with your help!
You have the power to keep local news strong for the coming months. Your financial support today keeps our reporters ready to meet the needs of our city. Thank you for investing in your community.
5b2baa6c4488b30009267bb7-original.jpg

Metro has their half-cent sales tax increase proposal working its way through the capitol, but Schwarzenegger has his own sales tax increase he officially announced yesterday within a large budget compromise. Here's one part of his plan to fix the $15 plus billion budget: "A temporary 1-cent sales tax increase for three years (excluding diesel, gasoline and jet fuel) followed by a permanent 1¼-cent reduction beginning in year 4. The additional ¼-cent reduction would be a permanent base sales tax reduction beginning when the 1-cent increase is no longer in effect." But come November, Schwarzenegger backed initiatives like Proposition 1 for the High Speed Rail train from LA to SF could easily put us back into deficit. And if both taxes are approved, Los Angeles County is looking at a 9.75% sales tax.