Pomona resident and housewife Mrs. Im recently moved and purchased new furniture and appliances. While shopping for items she liked, she discovered that the sales tax in Pomona, which stands at 10.25%, is higher than the sales tax in nearby Chino Hills in San Bernardino County. (See chart)

“Struggling with rising prices, and now sales tax too…”

Since then, Mrs. Im has deliberately sought out stores in that area to furnish her home. “When shopping for big-ticket items, the price difference adds up to a significant amount,” she said. She added, “Delivery fees are expensive too, and when using delivery services, the tax rate of the delivery destination applies. Hauling things in a pickup truck myself wasn’t easy, but with prices constantly rising, I’ve started paying attention to even these small details.”

Amid the economic burden caused by soaring grocery prices, gasoline, housing costs, and auto and home insurance premiums, a sales tax increase set to take effect on April 1 is expected to further strain household budgets for ordinary people.

This sales tax hike stems from last November’s election, where local governments put forward ballot measures to address fiscal challenges and sustain essential public services, which were subsequently approved by voters. However, with the U.S. Department of Labor recently reporting that the January Consumer Price Index (CPI) rose 3.0% compared to the previous year—an ongoing trend of inflation—this sales tax increase is anticipated to become yet another factor weighing down the finances of working families.

Looking at the sales tax increases in key areas with large Korean populations, the hikes range from 0.25 to 1 percentage point depending on the city. Buena Park, a city expected to be most affected by this change for Korean residents, is home to a concentration of Korean businesses along Beach Boulevard, designated as Koreatown. In the last election, voters passed Measure R, a measure aimed at securing funding for police staffing and city budget needs. As a result, Buena Park’s relatively low sales tax rate of 7.75% will rise by 1 percentage point to 8.75%.

Buena Park expects to generate an additional $20 million in annual tax revenue from this increase. According to the city, about 42% of its sales tax revenue comes from visitors or tourists. Other Orange County cities with significant Korean populations, such as La Habra, will see their sales tax rise from 8.25% to 8.75%, and Seal Beach from 8.75% to 9.25%, each by 0.5 percentage points.

Several cities in LA County are also facing sales tax increases. For most cities in LA County where the tax is rising, the change follows the approval of Measure A in the November 2024 election. This measure repeals Measure H (approved in 2007) and replaces the countywide 0.25% tax with a 0.5% tax to fund homeless services and affordable housing ordinances. On top of this, some cities have proposed their own additional sales tax increases, resulting in varying hikes across municipalities.

For example, cities such as Burbank, Arcadia, Gardena, Glendale, Norwalk, Pasadena, South Pasadena, La Cañada Flintridge, Long Beach, Montebello, and Monterey Park will see their sales tax rise from 10.25% to 10.5%, a 0.25 percentage point increase. Downey will go from 10% to 10.5%, and Santa Monica from 10.25% to 10.75%, both by 0.5 percentage points.

The largest increases are in Artesia and Palmdale, where sales taxes will jump from 9.5% to 10.5% and 10.25% to 11.25%, respectively, each by 1 percentage point. In contrast, the City of Los Angeles, home to the largest Korean population, will maintain its current sales tax rate of 9.5%, creating a mix of relief and concern among residents.

By Reporter Hwang Eui-kyung

<Hwang, Eui-kyung>