Taxes and fees
Taxes and fees paid by a City of LA household
These are the rates the tax receipt uses. Open a row for the recipient and the law that created the tax or fee.
Changed October 1, 2026. Measure ER raised the sales tax in the City of LA from 9.75% to 10.25%. On the November 3 ballot: Measure FD would add another half cent in the City for the Fire Department, starting as early as April 2027. It is not included below unless it passes. Ballot measures →
Taxable goods (sales tax)
State General FundGoes to State of California 3.9375%
Pays for the state budget: schools and universities, Medi-Cal, prisons and state agencies.
The law behind it and sources
Pays for the state budget: schools and universities, Medi-Cal, prisons and state agencies.
Source: California base sales tax rate breakdown (HdL presentation to City of Novato)
State realignment for County programsGoes to LA County 1.5625%
Collected by the state and sent to the County for mental health, social services and public safety programs the state handed to counties.
The law behind it and sources
Collected by the state and sent to the County for mental health, social services and public safety programs the state handed to counties.
- State-to-county realignment (1991 and 2011) (2011): The state transferred to counties responsibility for many health, mental health, social service and public safety programs, and dedicated part of the sales tax to pay for them. As a result, part of the sales tax paid in LA funds County social programs.
Source: California base sales tax rate breakdown (HdL presentation to City of Novato)
Prop 172 public safetyGoes to LA County 0.5%
Shared by the County and cities for sheriff, police, fire, prosecutors and probation. This receipt shows it under LA County, which receives the larger share.
The law behind it and sources
Shared by the County and cities for sheriff, police, fire, prosecutors and probation. This receipt shows it under LA County, which receives the larger share.
- Proposition 172 (1993): A statewide half-cent sales tax that can only be spent on local public safety: sheriff, police, fire, district attorneys and probation.
Source: California base sales tax rate breakdown (HdL presentation to City of Novato)
County transportation fundGoes to LA County 0.25%
The law behind it and sources
- Bradley-Burns Uniform Local Sales and Use Tax Law (1955): Gives every city and county the same local share of the sales tax, collected by the state and sent back. In the City of LA, 1% goes to the City and 0.25% to County transportation.
Source: California base sales tax rate breakdown (HdL presentation to City of Novato)
City of LA (Bradley-Burns)Goes to City of Los Angeles 1%
The City's own 1-cent share. It goes into the General Fund.
The law behind it and sources
The City's own 1-cent share. It goes into the General Fund.
- Bradley-Burns Uniform Local Sales and Use Tax Law (1955): Gives every city and county the same local share of the sales tax, collected by the state and sent back. In the City of LA, 1% goes to the City and 0.25% to County transportation.
Source: California base sales tax rate breakdown (HdL presentation to City of Novato)
Metro Prop A (1980)Goes to Metro (LA County transportation) 0.5%
Buses, rail and local transit. 25% goes back to cities for local transit.
The law behind it and sources
Buses, rail and local transit. 25% goes back to cities for local transit.
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: Local Return program · Propositions A and C
Metro Prop C (1990)Goes to Metro (LA County transportation) 0.5%
Transit, transit-related highway work, security and commuter rail. 20% goes back to cities.
The law behind it and sources
Transit, transit-related highway work, security and commuter rail. 20% goes back to cities.
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: Local Return program · Propositions A and C
Metro Measure R (2008)Goes to Metro (LA County transportation) 0.5%
Rail and bus construction, highways and bus service. 15% goes back to cities. Expires in 2039.
The law behind it and sources
Rail and bus construction, highways and bus service. 15% goes back to cities. Expires in 2039.
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: Local Return program · Measure R: cash receipts, expenditure plan and audits
Metro Measure M (2016)Goes to Metro (LA County transportation) 0.5%
Transit construction and operations, highways, and street repair. 16% goes back to cities. No end date.
The law behind it and sources
Transit construction and operations, highways, and street repair. 16% goes back to cities. No end date.
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: Local Return program · Measure M
Measure A homelessness & housingGoes to Measure A homelessness & housing 0.5%
The law behind it and sources
- Measure A (LA County, 2024) (2024): A half-cent countywide sales tax for homelessness services and affordable housing, approved by County voters in November 2024. It replaced the quarter-cent Measure H on April 1, 2025, and splits its money by a fixed formula.
Sources: LA County Homeless Services & Housing: Measure A · LA County sales tax rises to 9.75% on April 1, 2025
Measure ER County health care (from Oct 1, 2026)Goes to LA County 0.5%
A half-cent general County sales tax that started October 1, 2026 and ends in 2031. The Board's spending plan puts health care first. Until a lawsuit over the state law that allowed it is decided, the County must keep the money in escrow, so none of it can be spent yet.
The law behind it and sources
A half-cent general County sales tax that started October 1, 2026 and ends in 2031. The Board's spending plan puts health care first. Until a lawsuit over the state law that allowed it is decided, the County must keep the money in escrow, so none of it can be spent yet.
- Measure ER (2026) (2026): A countywide half-cent general sales tax approved by voters in June 2026 to help keep County health care and safety-net services running after federal and state cuts. It took effect October 1, 2026 and ends after five years. Because it is a general tax, the money goes into the County's General Fund. The Board's spending plan puts health care first. A lawsuit challenges the state law that allowed the County to exceed the usual sales tax cap, so the money is held in escrow until the case is decided.
Sources (3)
- LA County is collecting its new sales tax. It can't spend any of it yet. The Sales Tax People
- LA County sales tax rises to 10.25% on Oct 1, 2026 FOX 11 Los Angeles
- Notice L-1037: tax rate changes effective October 1, 2026 California Department of Tax and Fee Administration
Gasoline
State gas excise taxGoes to State of California 0.634/gal
63.4 cents on every gallon since July 1, 2026, up from 61.2 cents. It goes to state and local road repair.
The law behind it and sources
63.4 cents on every gallon since July 1, 2026, up from 61.2 cents. It goes to state and local road repair.
- SB 1, Road Repair and Accountability Act (2017): Raised the state gasoline excise tax to pay for road and bridge repair and tied it to inflation, so it rises automatically every July 1. It reached 63.4 cents a gallon on July 1, 2026.
Sources: California gas tax rises July 1, 2026 · CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025)
Federal gas excise taxGoes to Federal government 0.184/gal
The law behind it and sources
- Federal gasoline excise tax (1993): A federal tax of about 18 cents a gallon that pays into the Highway Trust Fund for federal highway and transit grants.
Source: California gas prices and the impacts of the Iran war
Sales tax on gas: local and public-safety shares (2.25%)Goes to LA County 2.25%
Gasoline doesn't pay the state's general sales tax. The 2.25% that remains is the local and public-safety share; this receipt shows it under LA County, though the City also receives part of it.
The law behind it and sources
Gasoline doesn't pay the state's general sales tax. The 2.25% that remains is the local and public-safety share; this receipt shows it under LA County, though the City also receives part of it.
- 2010 fuel tax swap (2010): Removed the state's general sales tax from gasoline and replaced it with a higher excise tax. Local and public-safety sales tax shares still apply to gasoline, which is why gas has a lower sales tax rate than other purchases.
Sources: CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025) · LAO: the 2010 transportation tax swap
Sales tax on gas: Metro Prop A (1980)Goes to Metro (LA County transportation) 0.5%
The law behind it and sources
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025) · Local Return program
Sales tax on gas: Metro Prop C (1990)Goes to Metro (LA County transportation) 0.5%
The law behind it and sources
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025) · Local Return program
Sales tax on gas: Metro Measure R (2008)Goes to Metro (LA County transportation) 0.5%
The law behind it and sources
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025) · Local Return program
Sales tax on gas: Metro Measure M (2016)Goes to Metro (LA County transportation) 0.5%
The law behind it and sources
- Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016): Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025) · Local Return program
Sales tax on gas: Measure AGoes to Measure A homelessness & housing 0.5%
The law behind it and sources
- Measure A (LA County, 2024) (2024): A half-cent countywide sales tax for homelessness services and affordable housing, approved by County voters in November 2024. It replaced the quarter-cent Measure H on April 1, 2025, and splits its money by a fixed formula.
Sources: CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025) · LA County Homeless Services & Housing: Measure A
Sales tax on gas: Measure ER (from Oct 1, 2026)Goes to LA County 0.5%
The law behind it and sources
- Measure ER (2026) (2026): A countywide half-cent general sales tax approved by voters in June 2026 to help keep County health care and safety-net services running after federal and state cuts. It took effect October 1, 2026 and ends after five years. Because it is a general tax, the money goes into the County's General Fund. The Board's spending plan puts health care first. A lawsuit challenges the state law that allowed the County to exceed the usual sales tax cap, so the money is held in escrow until the case is decided.
Sources: LA County sales tax rises to 10.25% on Oct 1, 2026 · Notice L-1037: tax rate changes effective October 1, 2026
Low Carbon Fuel Standard cost (estimate)Goes to State of California · fee, not a tax · cost inside the price 0.180/gal
Not a tax. A state climate program cost that fuel companies pass into the price, estimated by the California Energy Commission.
The law behind it and sources
Not a tax. A state climate program cost that fuel companies pass into the price, estimated by the California Energy Commission.
- Low Carbon Fuel Standard and Cap-and-Invest (2006): State climate programs that require fuel companies to buy credits or allowances. They are not taxes, but the cost is included in the pump price. The California Energy Commission estimates about 18 cents (LCFS) and 23 cents (Cap-and-Invest) a gallon.
Source: California gas prices and the impacts of the Iran war
Cap-and-Invest cost (estimate)Goes to State of California · fee, not a tax · cost inside the price 0.230/gal
Not a tax. Fuel companies buy carbon allowances and pass the cost into the price; estimate from the California Energy Commission.
The law behind it and sources
Not a tax. Fuel companies buy carbon allowances and pass the cost into the price; estimate from the California Energy Commission.
- Low Carbon Fuel Standard and Cap-and-Invest (2006): State climate programs that require fuel companies to buy credits or allowances. They are not taxes, but the cost is included in the pump price. The California Energy Commission estimates about 18 cents (LCFS) and 23 cents (Cap-and-Invest) a gallon.
Source: California gas prices and the impacts of the Iran war
Electricity bill
City electricity users tax (10%)Goes to City of Los Angeles 10%
Already on your LADWP bill. When summer heat pushes bills up, this tax goes up with them.
The law behind it and sources
Already on your LADWP bill. When summer heat pushes bills up, this tax goes up with them.
- LA Utility and Communications Users Taxes (LAMC Ch. 2, Art. 1.1) (2008): City of LA taxes on what households pay for phone service (9%), electricity (10%) and natural gas. The money goes into the City's General Fund, which pays for police, fire, parks and other services.
Sources: LADWP rates 2026 (tiers, city tax, SMUD comparison) · Mayor Bass announces relief for LADWP customers facing high bills (Oct 21, 2026)
Phone bill
City communications users tax (9%)Goes to City of Los Angeles 9%
The law behind it and sources
- LA Utility and Communications Users Taxes (LAMC Ch. 2, Art. 1.1) (2008): City of LA taxes on what households pay for phone service (9%), electricity (10%) and natural gas. The money goes into the City's General Fund, which pays for police, fire, parks and other services.
Vehicle value (yearly registration)
Vehicle license fee (0.65% of value)Goes to LA County 0.65%
Paid yearly with your registration and sent to local governments. Shown under LA County on this receipt.
The law behind it and sources
Paid yearly with your registration and sent to local governments. Shown under LA County on this receipt.
- Vehicle License Fee (2011): A yearly fee of 0.65% of a vehicle's value, paid with registration. The state collects it for local governments.
Sources: DMV Fast Facts: registration-related fees · Revenue and Taxation Code section 10752 (vehicle license fee rate)
Transportation improvement feeGoes to State of California · fee, not a tax $28–$196
A yearly fee based on your vehicle's value, from $28 to $196, that pays for road repair.
The law behind it and sources
A yearly fee based on your vehicle's value, from $28 to $196, that pays for road repair.
- SB 1, Road Repair and Accountability Act (2017): Raised the state gasoline excise tax to pay for road and bridge repair and tied it to inflation, so it rises automatically every July 1. It reached 63.4 cents a gallon on July 1, 2026.
Vehicle registration (flat fees)
Registration feeGoes to State of California · fee, not a tax $65/yr
The law behind it and sources
CHP feeGoes to State of California · fee, not a tax $29/yr
The law behind it and sources
Property assessed value
School districtsGoes to School districts 0.4%
The law behind it and sources
- Proposition 13 (1978): Caps the basic property tax at 1% of a property's assessed value. The assessed value is set when the property is bought and can rise by no more than 2% a year until it sells again. Voter-approved bonds can add to the rate.
Source: Property taxes: where does the money go? (County Assessor Jeff Prang)
LA CountyGoes to LA County 0.24%
The County Assessor reports this share as going to services in unincorporated areas, where the County acts as the city government.
The law behind it and sources
The County Assessor reports this share as going to services in unincorporated areas, where the County acts as the city government.
- Proposition 13 (1978): Caps the basic property tax at 1% of a property's assessed value. The assessed value is set when the property is bought and can rise by no more than 2% a year until it sells again. Voter-approved bonds can add to the rate.
Source: Property taxes: where does the money go? (County Assessor Jeff Prang)
CitiesGoes to City of Los Angeles 0.15%
The law behind it and sources
- Proposition 13 (1978): Caps the basic property tax at 1% of a property's assessed value. The assessed value is set when the property is bought and can rise by no more than 2% a year until it sells again. Voter-approved bonds can add to the rate.
Source: Property taxes: where does the money go? (County Assessor Jeff Prang)
Redevelopment successor agenciesGoes to Successor agencies & special districts 0.14%
Pays off debts of the redevelopment agencies the state dissolved in 2012. Leftover money flows back to schools, the County and cities.
The law behind it and sources
Pays off debts of the redevelopment agencies the state dissolved in 2012. Leftover money flows back to schools, the County and cities.
Source: Property taxes: where does the money go? (County Assessor Jeff Prang)
Special districtsGoes to Successor agencies & special districts 0.07%
Libraries, sanitation, water and other districts.
The law behind it and sources
Libraries, sanitation, water and other districts.
Source: Property taxes: where does the money go? (County Assessor Jeff Prang)
State income tax (entered directly)
State income taxGoes to State of California your bill
Trash fee (entered directly)
Solid Resources Fee (trash)Goes to City of Los Angeles · fee, not a tax your bill
A fee for trash and recycling pickup, billed on your LADWP statement. It rose 54% for single-family homes to $55.95 a month and is set to reach $65.93 by FY 2029-30.
The law behind it and sources
A fee for trash and recycling pickup, billed on your LADWP statement. It rose 54% for single-family homes to $55.95 a month and is set to reach $65.93 by FY 2029-30.
- Proposition 218 (1996): Requires that property-related fees, such as trash and sewer charges, cover only the cost of the service. Owners must be notified before rates rise, and a majority written protest can stop an increase.
Sewer charge (entered directly)
Sewer Service ChargeGoes to City of Los Angeles · fee, not a tax your bill
A fee for sewers and wastewater treatment, billed on your LADWP statement. The City approved increases each year through July 2028.
The law behind it and sources
A fee for sewers and wastewater treatment, billed on your LADWP statement. The City approved increases each year through July 2028.
- Proposition 218 (1996): Requires that property-related fees, such as trash and sewer charges, cover only the cost of the service. Owners must be notified before rates rise, and a majority written protest can stop an increase.
Source: City of LA moves forward with higher sewer service fees through 2028
How the state pays out local sales taxes
Stores send sales tax to the state's tax agency (CDTFA), which pays each city, county and voter-approved district monthly. Each quarter has two advances of about 30% of the expected amount, then a clean-up payment of about 40% that adjusts for what was collected.
Source: Payments and distributions for local jurisdictions and districts
City revenue
General Fund revenue sources, FY 2026-27
General Fund revenue in the proposed budget. Taxes are a little over two-thirds of it. The rest is fees, transfers and grants.
Property taxTax · 34.4% of General Fund · $776 per resident $2.95B
The City's share of the 1% property tax. It's the City's biggest single source of flexible money, about a third of the General Fund.
The law behind it and sources
The City's share of the 1% property tax. It's the City's biggest single source of flexible money, about a third of the General Fund.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
- Proposition 13 (1978): Caps the basic property tax at 1% of a property's assessed value. The assessed value is set when the property is bought and can rise by no more than 2% a year until it sells again. Voter-approved bonds can add to the rate.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Departmental receiptsFee or charge · 21.6% of General Fund · $488 per resident $1.86B
Money City departments bring in: permit and inspection fees, service charges, and reimbursements from special funds for General Fund work done on their behalf.
The law behind it and sources
Money City departments bring in: permit and inspection fees, service charges, and reimbursements from special funds for General Fund work done on their behalf.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Business taxTax · 10.4% of General Fund · $235 per resident $896M
A tax on gross receipts of businesses operating in the City. Small businesses under a revenue threshold can apply for an exemption.
The law behind it and sources
A tax on gross receipts of businesses operating in the City. Small businesses under a revenue threshold can apply for an exemption.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Utility users taxTax · 9% of General Fund · $202 per resident $770M
City taxes on electricity, gas and phone service. Higher electric bills during heat waves raise this revenue too.
The law behind it and sources
City taxes on electricity, gas and phone service. Higher electric bills during heat waves raise this revenue too.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
- LA Utility and Communications Users Taxes (LAMC Ch. 2, Art. 1.1) (2008): City of LA taxes on what households pay for phone service (9%), electricity (10%) and natural gas. The money goes into the City's General Fund, which pays for police, fire, parks and other services.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Sales taxTax · 7.9% of General Fund · $179 per resident $682M
The City's 1-cent share of the 9.75% sales tax charged in LA.
The law behind it and sources
The City's 1-cent share of the 9.75% sales tax charged in LA.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
- Bradley-Burns Uniform Local Sales and Use Tax Law (1955): Gives every city and county the same local share of the sales tax, collected by the state and sent back. In the City of LA, 1% goes to the City and 0.25% to County transportation.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Transient occupancy (hotel) taxTax · 3.6% of General Fund · $82 per resident $314M
A tax on hotel and short-term rental stays, paid mostly by visitors.
The law behind it and sources
A tax on hotel and short-term rental stays, paid mostly by visitors.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Power revenue transfer from LADWPTransfer from another fund · 2.6% of General Fund · $58 per resident $220M
A transfer from LADWP's power system to the City. It comes from what customers pay for electricity, so part of every LADWP bill helps fund City services.
The law behind it and sources
A transfer from LADWP's power system to the City. It comes from what customers pay for electricity, so part of every LADWP bill helps fund City services.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
- LA City Charter Section 344 (LADWP transfers) (2000): Lets the Board of Water and Power Commissioners send surplus money from the power system to the City, with Council approval. This 'power revenue transfer' helps pay for City services, so part of what customers pay for electricity goes to the City budget.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Documentary transfer taxTax · 2.4% of General Fund · $53 per resident $203M
The City's base tax when property is sold. Measure ULA's extra tax on high-value sales is separate and goes to a housing fund, not here.
The law behind it and sources
The City's base tax when property is sold. Measure ULA's extra tax on high-value sales is separate and goes to a housing fund, not here.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
- Measure ULA (City of LA, 2022) (2022): A City tax paid when property sells for more than about $5 million, with a higher rate above about $10 million. The money goes to eight housing and tenant programs. Revenue has come in far below the first estimates.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Ex-CRA tax incrementTax · 1.8% of General Fund · $41 per resident $156M
Property tax that used to go to the City's redevelopment agency, which the state dissolved in 2012. It now returns to the City.
The law behind it and sources
Property tax that used to go to the City's redevelopment agency, which the state dissolved in 2012. It now returns to the City.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Parking occupancy taxTax · 1.8% of General Fund · $40 per resident $152M
A tax on paid parking in lots and garages.
The law behind it and sources
A tax on paid parking in lots and garages.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Franchise incomeFee or charge · 1.5% of General Fund · $34 per resident $130M
Fees utilities and cable companies pay to use City streets for their lines and pipes.
The law behind it and sources
Fees utilities and cable companies pay to use City streets for their lines and pipes.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Parking finesFee or charge · 1.5% of General Fund · $33 per resident $126M
Parking tickets.
The law behind it and sources
Parking tickets.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
InterestOther · 0.9% of General Fund · $21 per resident $80M
Interest earned on City cash.
The law behind it and sources
Interest earned on City cash.
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Grants receiptsState or federal money · 0.2% of General Fund · $6 per resident $21.1M
The law behind it and sources
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Special parking revenue transferTransfer from another fund · 0.1% of General Fund · $3 per resident $12.2M
The law behind it and sources
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Tobacco settlementOther · 0.1% of General Fund · $2 per resident $9.1M
The law behind it and sources
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
State motor vehicle license feesState or federal money · 0.1% of General Fund · $2 per resident $6M
The law behind it and sources
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
- Vehicle License Fee (2011): A yearly fee of 0.65% of a vehicle's value, paid with registration. The state collects it for local governments.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
Residential development taxTax · 0.1% of General Fund · $1 per resident $4.7M
The law behind it and sources
Which pot of money: City General Fund, which the Mayor and Council can spend on almost any purpose.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
About the General Fund
The General Fund is money elected officials can spend on almost any purpose, including police, fire, parks, libraries and staff. Most of it comes from general taxes such as property, sales, business and utility taxes.
Special funds are restricted by law to one purpose. Sewer fees can only pay for sewers. Measure ULA can only pay for its housing programs. Gas tax money can only pay for roads. Of the City's $14.9 billion budget, about $8.6 billion is General Fund and the rest is restricted.
The City often cannot move money from one program to another because the money is in a special fund and the law does not allow it.
Source: FY 2026-27 Proposed Budget overview (City Administrative Officer)
The laws behind the money
Laws by topic
Each law, ballot measure or program that sets a tax, a fee or where the money goes. Open a topic to read them.
How sales tax works2
Bradley-Burns Uniform Local Sales and Use Tax Law (1955)
State law
Gives every city and county the same local share of the sales tax, collected by the state and sent back. In the City of LA, 1% goes to the City and 0.25% to County transportation.
Sources: California base sales tax rate breakdown (HdL presentation to City of Novato) · CDTFA sales and use tax research and statistics
Sales tax on car loans and leases (CDTFA Regulations 1641 and 1660)
State law
Sales tax on a purchased car is charged on its price. If the car is financed, interest and finance charges are not taxed as long as the contract lists them separately from the price. For a lease, the tax is charged on the lease payments.
Sources: Regulation 1641: credit sales (interest and finance charges) · Regulation 1660: leases of tangible personal property
Homelessness and housing7
Measure A (LA County, 2024) (2024)
Ballot measure
A half-cent countywide sales tax for homelessness services and affordable housing, approved by County voters in November 2024. It replaced the quarter-cent Measure H on April 1, 2025, and splits its money by a fixed formula.
Sources: LA County Homeless Services & Housing: Measure A · LA County sales tax rises to 9.75% on April 1, 2025
Inside Safe (2022)
Government program
Mayor Karen Bass's program that moves people from encampments into motels and other interim housing, then toward permanent housing. It began under the homelessness emergency the Mayor declared in December 2022.
Sources: FY 2026-27 Annual Homelessness Funding Report (CF 23-1022-S33) · Inside Safe costs top $322 million
LA Alliance for Human Rights v. City of Los Angeles (2022)
Court case or settlement
A federal lawsuit settlement in which the City agreed to create 12,915 shelter or housing spaces by June 13, 2027. In 2025 Judge David O. Carter found the City had not met its obligations and appointed a monitor.
Sources: Alliance Settlement status report (CF 23-1022-S30, data through Dec 31, 2025) · Judge finds Los Angeles failed to meet obligations for homeless residents (Jun 25, 2025)
Measure ULA (City of LA, 2022) (2022)
Ballot measure
A City tax paid when property sells for more than about $5 million, with a higher rate above about $10 million. The money goes to eight housing and tenant programs. Revenue has come in far below the first estimates.
Sources: Measure ULA: overview and revenue history · Measure ULA passes $1 billion (Jan 8, 2026)
Homeless Housing, Assistance and Prevention grants (HHAP) (2019)
Government program
State block grants to cities, counties and homeless service systems. The City's Round 6 award is $143.6 million, much of it for interim housing.
Source: FY 2026-27 Annual Homelessness Funding Report (CF 23-1022-S33)
Measure H (LA County, 2017) (2017)
Ballot measure
A quarter-cent countywide sales tax for homeless services, approved in March 2017. Measure A replaced it in April 2025.
Proposition HHH (2016) (2016)
Ballot measure
A $1.2 billion City bond approved by voters in November 2016 to build supportive housing for people experiencing homelessness, plus affordable housing and facilities. Property owners repay the bonds through a charge on their property tax bills.
Sources: Proposition HHH quarterly report, Oct 1 to Dec 31, 2025 (LAHD and CAO) · The High Cost of Homeless Housing: Review of Proposition HHH (Oct 8, 2019)
Transportation, gas and vehicles6
SB 1, Road Repair and Accountability Act (2017)
State law
Raised the state gasoline excise tax to pay for road and bridge repair and tied it to inflation, so it rises automatically every July 1. It reached 63.4 cents a gallon on July 1, 2026.
Sources: California gas tax rises July 1, 2026 · CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025)
Metro sales taxes: Prop A, Prop C, Measure R, Measure M (2016)
Ballot measure
Four separate half-cent countywide sales taxes that LA County voters approved for buses, rail, highways and local street repair. Together they add 2% to every taxable purchase in the county.
Sources: California base sales tax rate breakdown (HdL presentation to City of Novato) · CDTFA sales and use tax research and statistics
Vehicle License Fee (2011)
State law
A yearly fee of 0.65% of a vehicle's value, paid with registration. The state collects it for local governments.
Sources: DMV Fast Facts: registration-related fees · Revenue and Taxation Code section 10752 (vehicle license fee rate)
2010 fuel tax swap (2010)
State law
Removed the state's general sales tax from gasoline and replaced it with a higher excise tax. Local and public-safety sales tax shares still apply to gasoline, which is why gas has a lower sales tax rate than other purchases.
Sources: CDTFA notice: fuel tax rates effective July 1, 2026 (L-1025) · LAO: the 2010 transportation tax swap
Low Carbon Fuel Standard and Cap-and-Invest (2006)
State law
State climate programs that require fuel companies to buy credits or allowances. They are not taxes, but the cost is included in the pump price. The California Energy Commission estimates about 18 cents (LCFS) and 23 cents (Cap-and-Invest) a gallon.
Source: California gas prices and the impacts of the Iran war
Federal gasoline excise tax (1993)
State law
A federal tax of about 18 cents a gallon that pays into the Highway Trust Fund for federal highway and transit grants.
Source: California gas prices and the impacts of the Iran war
Public safety, health and County services5
Measure ER (2026) (2026)
Ballot measure
A countywide half-cent general sales tax approved by voters in June 2026 to help keep County health care and safety-net services running after federal and state cuts. It took effect October 1, 2026 and ends after five years. Because it is a general tax, the money goes into the County's General Fund. The Board's spending plan puts health care first. A lawsuit challenges the state law that allowed the County to exceed the usual sales tax cap, so the money is held in escrow until the case is decided.
Sources (4)
- Board of Supervisors Statement of Proceedings, Feb 10, 2026 Executive Office, LA County Board of Supervisors
- LA County is collecting its new sales tax. It can't spend any of it yet. The Sales Tax People
- Measure ER: what to know about the LA County health care sales tax NBC Los Angeles
- Notice L-1037: tax rate changes effective October 1, 2026 California Department of Tax and Fee Administration
Measure FD (on the Nov 3, 2026 ballot) (2026)
Ballot measure
A citizen-initiative half-cent City sales tax for the Los Angeles Fire Department. If a majority votes yes, it could start as early as April 1, 2027, has no end date, and can only be collected in a year when the Fire Department's share of the City's discretionary budget is at least its 10-year average.
Source: Measure FD: what to know about the proposed sales tax for the Fire Department
Measure J (2020) (2020)
Ballot measure
A County charter amendment approved in November 2020 that directs a share of the County's locally generated, unrestricted money to community investment and alternatives to incarceration. The County funds it through its Care First Community Investment program.
Source: Care First Community Investment annual report (Mar 6, 2025)
State-to-county realignment (1991 and 2011) (2011)
State law
The state transferred to counties responsibility for many health, mental health, social service and public safety programs, and dedicated part of the sales tax to pay for them. As a result, part of the sales tax paid in LA funds County social programs.
Source: California base sales tax rate breakdown (HdL presentation to City of Novato)
Proposition 172 (1993)
Ballot measure
A statewide half-cent sales tax that can only be spent on local public safety: sheriff, police, fire, district attorneys and probation.
Source: California base sales tax rate breakdown (HdL presentation to City of Novato)
Property tax and voter-approval rules2
Proposition 218 (1996)
Ballot measure
Requires that property-related fees, such as trash and sewer charges, cover only the cost of the service. Owners must be notified before rates rise, and a majority written protest can stop an increase.
Proposition 13 (1978)
Ballot measure
Caps the basic property tax at 1% of a property's assessed value. The assessed value is set when the property is bought and can rise by no more than 2% a year until it sells again. Voter-approved bonds can add to the rate.
Sources: LA County Auditor-Controller: Taxpayers' Guide and Tax Rate Lookup · Property taxes: where does the money go? (County Assessor Jeff Prang)
City utilities and phone bills2
LA Utility and Communications Users Taxes (LAMC Ch. 2, Art. 1.1) (2008)
City or County law
City of LA taxes on what households pay for phone service (9%), electricity (10%) and natural gas. The money goes into the City's General Fund, which pays for police, fire, parks and other services.
Sources: LADWP rates 2026 (tiers, city tax, SMUD comparison) · LA Office of Finance: Communications Users Tax FAQ
LA City Charter Section 344 (LADWP transfers) (2000)
City or County law
Lets the Board of Water and Power Commissioners send surplus money from the power system to the City, with Council approval. This 'power revenue transfer' helps pay for City services, so part of what customers pay for electricity goes to the City budget.
Sources: FY 2026-27 Proposed Budget overview (City Administrative Officer) · LADWP Board resolution: Power Revenue Fund transfer, FY 2025-26 (CF 25-1408)
Federal law and lawsuits2
H.R. 1 (2025 federal budget law) (2025)
State law
The 2025 federal budget law cut federal support for Medicaid (Medi-Cal) and food benefits (CalFresh) and added work requirements. The County's health and social service budgets absorb much of the cut.
Source: LA County previews 2026-27 Recommended Budget (Apr 13, 2026)
AB 218 (2019) (2019)
State law
Gave survivors of childhood sexual abuse more time to sue. Claims against the County followed, and the County has committed more than $4.8 billion to settlements. That money is not available for other County programs.
Source: LA County previews 2026-27 Recommended Budget (Apr 13, 2026)