Businesses and consumers are encouraged to confirm specific rates based on their transactions. Click on a state to find its current sales tax rate, including any applicable local taxes. The lawsuit argues that this violates Proposition 218, which requires voter approval for any new, extended, or increased taxes. “If you change anything that was approved by voters in a ballot measure, it can only be changed by another ballot measure,” said Ian Patton of the Long Beach Reform Coalition. The group is asking the court to block the tax increase, declare it illegal, and stop the city from collecting the additional tax. This figure is the sum of the rates together on the state, county, city, and special levels.
City-Wide Elected Officials
- Use this guide to navigate the complexities of sales tax in Long Beach and ensure your business remains compliant.
- Online businesses operating in Long Beach must also be aware of the sales tax implications.
- Please let us know if any of our data is incorrect, and we will update our database as soon as possible.
- The market value is what a willing buyer would pay to a willing seller in an open and competitive market, often influenced by location, property condition, and economic market trends.
- However, any business that sells taxable goods or services in Long Beach must register with the California Department of Tax and Fee Administration (CDTFA).
Businesses can file and pay their Long Beach sales tax through the California Department of Tax and Fee Administration (CDTFA). Returns can be filed online, either quarterly or annually, depending on the business size. For hassle-free tax management, HandsOffSalesTax provides expert services to handle everything from filing to compliance, letting you focus on growing your business. Sales tax compliance can be a challenge for many businesses, especially those new to Long Beach or unfamiliar with California’s complex tax system. Here are some common mistakes businesses make and tips on how to avoid them. Ensuring that the correct amount of tax is collected on all sales, including online transactions, is critical to avoiding penalties and fines.
City Council
These systems ensure that the correct tax rate is applied to each sale and that businesses remain compliant with local and state tax laws. In most states, essential purchases like medicine and groceries are exempted from the sales tax or eligible bookkeeping for a lower sales tax rate.Long Beach doesn’t collect sales tax on purchases of most groceries. Certain purchases, including alcohol, cigarettes, and gasoline, may be subject to additional California state excise taxes in addition to the sales tax. Patton said in an email after the council vote that his group, Long Beach Reform Coalition, plans to file a legal challenge to block the city sales tax increase. If the city were to forgo that 0.25% until late 2027, city officials said, it would miss out on about $60 million in revenue over that two and a half years.
List of California Local Sales Tax Rates
Councilmember Kristina Duggan said she’s heard from multiple people worried the tax could hurt local businesses and send people into Orange County to shop and dine. According to this state tax table, nearby OC cities’ tax rates include 7.75% in Cypress, Anaheim and Huntington Beach and 8.75% in Seal Beach. If Long Beach were to keep to the status quo (0.75% through late 2027), Long Beach shoppers would pay a total sales tax of 10.5%. But because the state raised the local cap, city officials say they can go back to collecting their Measure A’s full 1% on April 1, when the county’s old homeless tax (Measure H) goes away and is replaced by its new one (county Measure A). https://subsidencemonitoring.co.uk/2021/04/20/understanding-intangible-assets-and-amortization-8/ That would push the total to 10.75%, the maximum that can be charged in Los Angeles County. When examining property taxes in Long Beach, CA, understanding the distinction between “market value” and “assessed value” is crucial.
Conversely, decreases might result from a budget surplus or a successful lobbying effort advocating for tax relief. Economic forecasts and public opinion play significant roles in shaping any potential changes. For example, a period of economic downturn might make tax increases politically unpopular, while a robust economy might allow for more flexibility. The Long Beach City Council fast-tracked a sales tax increase in December, aiming to generate an additional $24 million annually. Tax-Rates.org provides sales tax data for “Long Beach” on an AS-IS basis in the hope that it might be useful, and we can offer NO IMPLIED WARRANTY OF FITNESS.
Locations related to 90802 ZIP Code
- At the Dec. 12 meeting, Councilmember Kristina Duggan raised concerns about the tax change’s legality.
- These measures, like Measure A and Measure M, reflect the city’s commitment to maintaining and enhancing its local amenities.
- The Long Beach, California sales tax is 7.50%, the same as the California state sales tax.
- Small businesses in Long Beach face the challenge of balancing competitive pricing with the need to comply with the city’s high sales tax rate.
- For Long Beach-based e-commerce businesses, this means collecting the 10.25% tax from in-state customers and remitting it to the appropriate authorities.
- High sales tax rates may deter large retailers from expanding into the area, as consumers may be more inclined to shop in nearby cities with lower tax rates.
- For hassle-free tax management, HandsOffSalesTax provides expert services to handle everything from filing to compliance, letting you focus on growing your business.
City officials have not commented directly on the lawsuit but previously defended their decision. At the Dec. 12 meeting, Councilmember tax rate in long beach ca Kristina Duggan raised concerns about the tax change’s legality. In response, the city’s attorney and financial officer argued that the move was legally sound and aligned with voter intent. The current sales tax of 9.5% is set to go up by .25% after voters approved Measure A in the November election to give more funding to homelessness issues. However, for businesses that already have a strong presence in Long Beach, sales tax compliance is a manageable part of their operations.
Long Beach adds its own local sales tax, resulting in a total combined rate. This combined rate can vary slightly depending on specific districts within the city, but generally remains consistent across most areas. To obtain the precise current combined rate, it is advisable to consult the official website of the California Department of Tax and Fee Administration (CDTFA) or the City of Long Beach’s finance department. When comparing Long Beach sales tax to other cities in California, it becomes apparent that the city’s 10.25% rate is on the higher end of the spectrum. While some cities in California also have high sales tax rates due to additional district taxes and local measures, Long Beach remains one of the cities with a top-tier rate. 90802 sales tax detailsThe minimum combined 2025 sales tax rate for 90802, California is 10.5%.
- Long Beach, California’s sales tax landscape in 2025 is projected to remain relatively stable, barring any unforeseen legislative changes at the state or local level.
- As with the rest of California, certain essential items are exempt from sales tax to reduce the financial burden on residents.
- But wait, it gets even crazier when you check out your federal taxes; you def wanna peep the Irmaa Tax Brackets to see how much you’ll owe Uncle Sam.
- With Measure H ending early, Long Beach officials saw an opportunity to raise Measure A’s rate ahead of schedule without exceeding the state’s maximum tax threshold.
- The assessed value is influenced by the property’s market value and any applicable exemptions.
City Clerk
Okay, so Long Beach sales tax in 2025 is gonna be, like, a total bummer, right? But wait, it gets even crazier when you check out your federal taxes; you def wanna peep the Irmaa Tax Brackets to see how much you’ll owe Uncle Sam. Knowing those brackets will totally help you budget better, so you aren’t totally broke after paying Long Beach’s sales tax.
Step-by-Step Guide for Filing Sales Tax:
- California’s sales tax rates for commonly exempted categories are listed below.
- A county sales tax for homeless services was already in place, and Long Beach residents have been paying a sales tax that funds city operations since 2016.
- However, for businesses that already have a strong presence in Long Beach, sales tax compliance is a manageable part of their operations.
- However, for consumers and businesses, this means higher costs on taxable purchases.
- In most states, essential purchases like medicine and groceries are exempted from the sales tax or eligible for a lower sales tax rate.Long Beach doesn’t collect sales tax on purchases of most groceries.
- Property taxes in Long Beach, CA are calculated based on the tax assessed value, which is often lower than the actual market value due to property tax exemptions such as the homestead or senior exemption.
Small businesses in Long Beach face the challenge of balancing competitive pricing with the need to comply with the city’s high sales tax rate. For example, small retailers may struggle to absorb the cost of the tax, particularly if their competitors in neighboring cities offer lower tax rates. In California, district taxes are voter-approved taxes that apply to certain areas, such as cities or counties, to fund specific initiatives. In Long Beach, these district taxes contribute significantly to the overall 10.25% sales tax rate. The current Long Beach sales tax rate for 2024 stands at 10.25%, which makes it one of the higher rates in California.
Long Beach shoppers will pay more sales tax in 2025. Here’s why
Sales-Taxes.com strives to provide accurate and up-to-date sales tax rates, however, our data is provided AS-IS for informational purposes only. In a surprising twist, the CDTFA has sided with LBRC’s legal position, stating in a Jan. 7, 2025, letter that Long Beach’s tax increase lacked voter authorization and could not be implemented. We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. He contends that what Councilmember Joni Ricks-Oddie called “technical modifications” to city rules actually constitute an unlawful tax increase by the council. Voters in November agreed to replace a 0.25% county sales tax for homeless services with a new 0.50% tax; a city sales tax tied to the county tax is now also slated to increase by a quarter.