Sales Tax Measure

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The City of Monrovia is evaluating a potential local sales tax measure in 2019 to counter planned LA County tax increases and keep this money local here in Monrovia.

Approaching the CA Sales Tax Cap - Should We Look At Keeping Our Money Local?

Currently, the maximum sales tax rate in CA is 10.25%. Here in LA County, we have the highest base sales tax rate in California at 9.5%. Due to the vagaries of State law, that means there is 0.75% of available sales tax capacity remaining that local districts (such as counties and municipalities) could capture. 

LA County is looking to go back to the voters to ask for additional sales tax increases in 2020 and 2022. With this in mind, we believe Monrovia has a window of opportunity to get ahead of this situation by approving a local sales tax measure to protect our resources and keep our money local.

This is not something that Monrovia is alone in exploring. Of the 88 cities in LA County, 29 have already reached the maximum sales tax rate of 10.25%, while another 9 cities have increased their sales tax rate to 10%.

It's important to note that cities that have reached the 10.25% cap previously do not pay for additional LA County taxes that are passed, but they are still eligible to receive the funds collected despite not paying into the fund. 

City Sales Tax Map

Red Icon Sales Tax Rate: 10.25%

Blue Icon Sales Tax Rate: 10%   Orange Icon Sales Tax Rate: 9.5%

Based on LA County’s successful track record of passing sales tax measures, it is only a matter of time before additional sales tax measures are approved and the remaining 0.75% of local sales tax capacity is taken up by the County. Did you know that, on average, Monrovia gets back only 10 cents of every sales tax dollar we contribute to LA County? While LA County provides valuable services to the region as a whole,it's a question worth asking whether we want to continue sending more funds to the County to be distributed across 88 cities, or if we want to vote to keep that money here in Monrovia to focus on local issues.

Impacts of the Sales Tax - How Much Would It Cost?

A cup of coffee would increase by $0.02

 Estimated Cost Breakdown

Current Sales Tax Rate 

Proposed Sales Tax Rate 
Medium Coffee at a Coffee Shop (Dine In) $2.49  $2.49 
Current Sales Tax Rate 9.5% $0.24  $0.24 
Proposed Sales Tax Rate Increase 0.75% $0.02 
Total Cost $2.73  $2.75 

A trip to the store for $50.00 worth in household goods would increase by $0.38

 estimated Cost Breakdown

Current Sales Tax Rate 

Proposed Sales Tax Rate 
Household Goods 
(Cleaning supplies, toilet paper, retail goods)
$50.00 $50.00
Current Sales Tax Rate 9.5% $4.75  $4.75
Proposed Sales Tax Rate Increase 0.75% $0.38
Total Cost $54.75  $55.13

Potential Projects - What Might the City Do With This Money If Approved?

If the sales tax measure were to be approved, Monrovia would generate an additional $4.5 million a year. While the City is still in the exploratory phase of whether to proceed with this sales tax measure, there are several aspirational projects that the City is interested in pursuing. The funding could be put towards projects that would enhance the community, such as:

Potential Project List

Ensure Fiscal Sustainability & Achieve AAA Rating Expand Homelessness Prevention Efforts & Affordable Housing Options
Upgrade City Facilities, like the Community Center, Library, Parks, and Old Town Monrovia Expand Mobility Options & Active Transportation
Launch Green Sustainability Initiatives & Implement Stormwater Capture Projects Increase Community Activist Policing Programs & Enhance Public Safety

Supporting Documents