July 2017 Sales Tax Increases for Los Angeles County
Dear Clients and Friends,
Individuals and businesses will soon be paying higher sales tax in Los Angeles County. Businesses are required to collect and consumers will be required to pay higher sales taxes starting July 1, 2017.
Rates for City of Los Angeles and Most Areas
For items sold in the City of Los Angeles and most areas in Los Angeles County, the sales tax rate is rising from 8.75% to 9.25%. Sellers should start collecting 9.25% sales tax starting July 1, 2017.
Higher Rate Cities
If you happen to be in one of the cities below, you are required to collect and pay higher rates. The cities with higher rates are:
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Out of Area Shipments
Businesses generally must collect CA sales tax based on the district they are located, for goods shipped anywhere in CA. In addition, businesses may also be required to collect tax for other districts, if they are considered “engaged in business” in that district.
Future Rate Changes
The State Board usually makes changes on a quarterly basis. Most of the time, changes only affect a few areas of CA. The next change likely to hit Los Angeles is the Sales Tax for Homeless Services and Prevention that was passed on March 7, 2017. When implemented by the State Board of Equalization, the increase will be in a future quarterly update.
We hope you find this update informative and helpful. Please feel free to contact our partners or tax department with any questions that you might have.
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