California New Car Dealers Association

 

 Los Angeles and Orange County Area Sales and Use Tax Changes

           Effective July 1st, sales and use taxes in Los Angeles County will increase by ½ percent,  due to enactment last November by local votes of Measure R.  The city council of Laguna Beach (in Orange County) recently voted to decrease their sales and use tax rate by ½ percent by discontinuing a previously-approved district tax, also effective July 1, 2009.   The new tax rates are shown in the table, below:

Cities/County

Change

New Rate

County of Los Angeles

.50%

  9.75%

City of Avalon

.50%

10.25%

City of El Monte

.50%

10.25%

City of Inglewood

.50%

10.25%

City of Laguna Beach

-.50%

  8.75%

City of Pico Rivera

.50%

10.75%

City of South Gate

.50%

10.75%

           Sales and use taxes on vehicles are based upon the rate in the jurisdiction in which vehicle is registered.  Although sellers may seek reimbursement from the purchaser for sales tax, the payment obligation is owed by the seller ?meaning that if you under collect sales or use tax, you must pay the deficiency.  Please forward this to all employees who may need this information and make sure to collect the correct rate come July 1st.

 

 

? Phone: 916.441.2599 ? Fax: 916.441.5612 ? www.cncda.org