Los Angeles County sales tax rises to 9.75% to combat homelessness

On April 1, 2025, Los Angeles County officially increased its sales tax from 9.5% to 9.75%, a decision approved by voters back in November 2024. This increase is part of Measure A, which aims to bolster funding for services directed towards addressing homelessness in the county. The measure elevates the sales tax on various items such as clothing, toys, and furniture by half a cent. However, due to the replacement of a previously existing temporary quarter-cent tax, the actual increase to consumers will equate to a quarter-cent beginning today. The revenue generated from this sales tax hike is estimated to exceed $1 billion annually, with the funds allocated to maintain existing homeless services. Notably, a portion of the revenue is set to be channeled into the Los Angeles County Affordable Housing Solutions Agency, which was established in 2023 to spearhead initiatives aimed at creating new housing and other solutions for the homeless crisis. The distribution of funds will be determined based on the annual count of homeless individuals within the county, ensuring that resources are allocated where they are most needed. Moreover, several cities within Los Angeles County have approved their own tax hikes, resulting in higher sales taxes for shoppers. For instance, areas like Lancaster and Palmdale will see local taxes rise to 11.25%. This multifaceted approach by local officials demonstrates an aggressive strategy to combat homelessness, as well as ensuring that essential services continue to receive vital funding. Measure A will remain in effect until it is either repealed or amended by voters, reflecting the county's commitment to addressing homelessness through sustainable financial mechanisms. County officials emphasize that this increase is not just a formality but crucial in building long-term solutions to a pressing social issue that affects many residents.