Life is getting more expensive in LA County starting Thursday, as an increased sales tax officially went into effect.
After voters passed Measure ER in June, the sales tax rate in the county increased from 9.75% to 10.25% on October 1.
Because Measure ER is a general sales tax, the county says the revenue collected will go into the county’s general fund. Priorities include healthcare services and safety-net providers, including county hospitals, clinics and public health programs, according to the LA County Department of Public Health.
Some residents say the timing of the tax hike isn’t great, especially given the already high cost of living in the area. The impact is already being felt in everyday purchasing decisions among locals.
“I’m feeling it across the board, from groceries to everything in between,” one LA County resident told Fox 11.
Meanwhile, in cities like Santa Monica, Pasadena and West Hollywood, the sales tax will be even higher, with rates reaching about 11% or more.
Updated information on sales tax increases across LA County can be found through the California Department of Tax and Fee Administration.
“It’s gotten a lot more expensive in California,” one Santa Monica shopper told Fox 11.
The increases come as county residents are also paying more at the gas pump.
“I remember at one point five dollars was high, that’s the not case anymore,” one resident told Fox 11.
Tonantzin Carmona, director of economic policy at The Century Foundation, said Californians are having a particularly difficult time compared with families across the country.
“Housing in California was already extraordinarily expensive, but now mortgage rates are above 7%,” Carmona told Fox 11. “You look at things like gas, gasoline prices across the country, the average today is about $4, but in California, the average is above $6 today.”
She also explained that while longstanding issues like the housing shortage continue to make life more expensive, broader factors, including war and federal economic policies, are adding to the financial pressure on families.
“There are issues like housing supply, etc. but some of the pressures that families are experiencing right now are driven very much by the choices in Washington, from tariffs to the War in Iran,” she told Fox 11.
The county tax increase is expected to be temporary and remain in place for five years.
Groceries, prescription medications and certain medical equipment will be exempt from the increased sales tax.
But LA residents say life in the region has only become more expensive over the past decade.
“No one can really start here anymore,” another resident told Fox 11. “It’s definitely not affordable anymore, especially if you’re starting out.”
