How will this tax impact shoppers?
Measure A is expected to generate more than $1 billion annually for LA County. It officially took effect on April 1, 2025 and will remain in place until it is repealed by voters. The tax revenue will be split between two initiatives:
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60% will go toward homeless services, including programs for mental health, substance use disorders and permanent housing placement.
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40% is earmarked for building affordable housing through the newly formed Los Angeles County Affordable Housing Solutions Agency and the Los Angeles County Development Authority.
Some cities, including Santa Monica and Pico Rivera, which were previously excluded from Measure H, are now subject to the new rules. The change might feel minor — just a few extra cents on smaller buys — but on bigger-ticket items, those cents can really add up.
CBS News reporter Jeff Nguyen visited Westlake Village, a city divided by county lines — and also bottom lines. One side, in Ventura County, pays just 7.25% in tax while the LA County side of the city now pays 9.75% tax. He spoke to one shopper who says she'll go to the side of town that has lower taxes.
“So if I have a choice, I’m going to the one where it’s less,” Laura told CBS.
Another shopper was frustrated by the changes during a time when she's trying to spend less.
“As soon as I saw the bill today, I was like, whoa! I’m pregnant so I’m trying to save money during this time,” shopper Brittney Mukhar told CBS.
Adding to the frustration, not everyone is convinced the additional funds will be well spent. LA County leaders have faced criticism after a recent audit found the Los Angeles Homeless Services Authority (LAHSA) could not track how nearly $2.5 billion in funding was spent.
“I’m all for helping the homeless — I’m not for wasting my money,” said Laura.
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Learn MoreHow to protect your budget amid rising taxes
With higher prices and economic uncertainty already straining household budgets, even a modest increase in sales tax can affect your bottom line. Here are a few ways to soften the blow.
Be strategic about where you make big purchases
If you’re buying expensive electronics, furniture or even a car, consider shopping in a neighboring county with a lower sales tax. A drive to Ventura County, for example, could save you hundreds of dollars on a large purchase.
Adjust your budget
Even a small uptick in spending adds up over time. Review your budget and tweak spending categories — especially for things that are now taxed more heavily. Ask yourself whether a purchase is necessary or if it can wait until a sale — or until you’re in a lower-tax zone.
Embrace sales and discounts
Use store apps, digital coupons and meal planning to save on groceries and essentials. Every little bit helps offset the higher tax.
Use cash back credit cards wisely
If you can pay off your balance in full, cash back cards can help take the sting out of taxes and everyday spending. Look for cards offering extra rewards on groceries or gas and use those rewards to offset the tax increase.
While the aim of the new sales tax is to address one of the county’s most pressing issues, everyday consumers are left to figure out how to make their dollars stretch a little further.
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