Page 69 - FY 2020-21 Revenue Outlook

Sales Tax
State, County and Local Sales Tax Components in effect for Los Angeles City

State Rate
General Fund 3.6875% State General Fund
General Fund 0.2500% (Inoperative in 2001, but effective thereafter.)
The Local Public Safety Fund was approved by the
California electorate in 1993 to support local criminal
Local Public Safety Fund 0.5000%
justice activities. The City receives a small share of this
-- about $30 million annually.
For local health and social service programs. This
Local Revenue Fund 0.5000%
portion was established as part of 1991 realignment.
This portion was established as part of 2011
Local Revenue Fund 1.0625%
realignment.
Subtotal for State purposes 6.00%
Uniform Local Tax Rate
The county allocates a small portion of this to the City
County Transportation 0.25%
for transportation purposes.
This is the source of City sales tax revenue. The City's
share was reduced from 1% of taxable sales within the
City to 0.75% by the triple flip starting with City receipts
Local Point of Sale 1.00% in September 2004. Replacement property tax in lieu
revenue was remitted to the City to make up the
shortfall during this period. The City is now receiving
the full 1 percent rate.
Subtotal for Local Purposes 1.25%
Total Statewide Rate 7.25%

Voter Approved Local Rates State law permits voter approval of optional local tax
rates. The following countywide voter-approved local
rates are applicable in the City of Los Angeles.
Proposition A Los Angeles County 0.50% Voter Approved in 1980 for public transit
Transportation Commission
Proposition C Los Angeles County
Transportation Commission 0.50% Voter Approved in 1990 for public transit
Measure R Los Angeles MTA 0.50% Voter Approved in 2008 for public transit
Measure M Los Angeles MTA 0.50% Voter Approved in 2016 for public transit
Measure H Los Angeles County 0.25% Voter Approved in 2017 for homeless services
Total Optional Local Rate Applicable 2.25%
in City of Los Angeles

Total Sales Tax Rate in City of Los 9.50% This rate dropped to 8.75% with the expiration of
Angeles Proposition 30 in December 2016, and increased to
9.5% in July 2017 with the implementation of Measures
M and H.

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