With new sales tax rates launched across California on Tuesday, people will be costing people, especially in Los Angeles County.
The county is working on the highest sales tax rate in the country at 9.75%, but many cities in the county are seeing even higher tax rates as their jurisdictions are allowed to impose additional district taxes.
Shoppers may save some money if they decide to buy other expensive items, such as furniture and appliances, in another county with a lower sales tax rate.
This means that even if a Lancaster-based shopper purchases a vehicle from the city of Ventura (7.75% sales tax), the person will have to pay the full amount by 11.25% in Lancaster and Palmdale.
Auto dealers like Lancaster Valley Auto Center hope that consumers will soon feel the difference.
“The percentage of what you spend thousands of dollars will definitely feel that on the sticker,” said Nicholas Douglas, general manager of Valley Auto Center. “If you’re paying financial fees, you’ll feel that a few times.”
Shoppers looking to buy a used car that costs $24,995 will pay more than $2,800 in sales tax, nearly $300 more than the consumer paid before Tuesday.
“Last day, $2,575 was sales tax. A day later, it’s up to $2,827.
Douglas feared that if Lancaster’s median household income was $76,083, the dollar might not go far.
“I know that here in the Antelope Valley, the central household income is very strict because there is additional tax, so I know that neighbors are definitely trying to feel it,” he said.
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