Walters: Los Angeles and Bay Area voters to decide whether to hike already high sales taxes

"Los Angeles officials are asking voters in the June primary election to add another half percentage point to rates that already top 10% in most of the county's cities, raising money to offset reductions in federal health care spending. And voters in four Bay Area counties will decide in November whether to add another half percentage point, while those in San Francisco will be asked for a full percentage point."

"Local officials seeking to go beyond that cap routinely ask the Legislature to grant waivers and they are routinely approved. California consumers spend about a trillion dollars a year on taxable goods, and the 7.25% statewide rate—the highest of any state—generates more than $70 billion a year, roughly half of which goes into the state's general fund budget."

"When local override taxes are added, California's sales tax rate averages 8.99%, according to the Tax Foundation, or seventh highest of any state. With local rates, the range is as high as 11.25% in some Los Angeles County cities."

California is experiencing a wave of local sales tax increases that are eroding a state law limiting add-on taxes to 2 percentage points above the 7.25% statewide rate. Los Angeles County seeks a half-point increase in June to offset federal healthcare spending cuts, while four Bay Area counties propose similar increases in November for transit systems. San Francisco requests a full percentage point increase. These overrides have become routine, with local officials regularly obtaining legislative waivers. California's statewide rate is already the nation's highest at 7.25%, generating over $70 billion annually. With local additions, average rates reach 8.99%, with some Los Angeles cities exceeding 11.25%.

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