LANCASTER — Starting April 1, the sales tax rate in the cities of Lancaster and Palmdale will increase from 10.25% to 11.25%, the highest sales tax rate in the state.
The next highest tax rate in the state as of April 1 is 10.75%, which is in 16 cities, including six in Alameda County, as well as Glendora, Irwindale and Santa Monica, according to the California Department Of Tax And Fee Administration.
The higher tax rate came about in part after voters in both cities approved tax measures last November and Los Angeles County voters approved Measure A.
Lancaster voters approved Measure YM; Palmdale voters approved Measure PD. Both measures permitted the two cities to amend their respective sales and tax ordinances to provide an automatic increase to the sales and use tax rate, to the maximum permitted — whether because another tax expires, the state Legislature increases the statutory maximum use tax for the cites, or otherwise.
Last year Assemblyman Juan Carrillo, D-Palmdale, introduced Assembly Bill 2443, which authorized the cities of Lancaster, Palmdale and Victorville to impose a transactions and use tax for the support of countywide transportation programs or general services, at a rate of no more than 1%, according to text of the bill. Gov. Gavin Newsom signed the bill Sept. 29.
Also on Nov. 5, 57.78% of Los Angeles County voters approved Measure A, the Homeless Services and Affordable Housing Ordinance, which repealed the quarter-cent tax under Measure H and replaced it with a half-cent sales tax for homelessness services. The Measure H quarter-cent sales tax was set to expire in 2027. The Measure A half-cent sales tax has no sunset date.
“I think 11.25 is too much, but they voted for it,” Lancaster Vice Mayor Marvin Crist said.
He added, “We’re trying to work with all the car dealers, we’re trying work with all the people that will be affected by this.”
The cities were going after the quarter-cent sales tax set to expire with Measure H.
“We were going for 25 cents,” Crist said. “We’re trying to keep the county from taking our money.”
The goal was for both cities to get their “fair share” before the county get its hands on it.
“We do not get our fair share, so the sales tax will allow us to fend for ourselves,” he said.
For example, the city contributes $7 million for homelessness and gets back $1 million. The city gets $279 per unhoused person while downtown Los Angeles gets $4,500.
In November 2020, voters in both cities approved three-quarter cent sales tax increases — Measure LC for Lancaster and Measure AV for Palmdale — to help preserve essential safety services such as 911 emergency response, repairing streets/potholes, and maintaining veterans, senior, mental health, community programs. Those measures took both cities to 10.25%, the maximum allowable sales tax rate in the state.
With Measure H set to expire in 2027, Crist said the cities wanted the quarter-cent sales tax to stay local before the county could get it.
“We took 50, the county took 50 and we deferred 50,” he said. “We’re well aware that it’s high; it wouldn’t be high if we got our fair share, and that’s what we have been complaining about from day one.”
Both city councils voted last year to defer implementation of two quarter-cent increases for 2028 and 2029 that could have raised the tax rate in both cities to 11.75%.
“We’re deferring it with the intent not to take it,” Crist said.
Measure YM is expected to raise between $10 and $14 million a year for Measure YM. The city got about $20 million from Measure LC.
jdrake@avpress.com
LOS ANGELES — Los Angeles County’s seasonally adjusted unemployment rate remained unchanged at 6% in February, compared to a revised 6% in January, according to figures released Friday by the state Employment Development Department.
The 6% rate was above the rate of 5.4% a year ago.
Statewide, California’s seasonally adjusted unemployment rate was 5.4% in February, the same as in January, and 5.1% a year ago in February 2024. The comparable estimates for the nation were 4.1% in February, 4% in January, and 3.9% a year ago.
Total non-farm employment in Los Angeles County increased by 28,700 jobs between January and February to reach 4.58 million.
The trade, transportation and utilities sector showed month-over losses of 5,000 jobs.
Meanwhile, information, an industry that is currently 26% below pre-pandemic levels, added 8,600 jobs. Motion picture and sound recording industries were up 8,600 jobs, which make up 59% of the industry employment.