WEST HOLLYWOOD-On Thursday, March 18, the City of West Hollywood reminded local businesses and shoppers that the increase in sales tax will go into effect on Thursday, April 1, 2021. The West Hollywood tax rate will increase from 9.50 percent to 10.25 percent.
West Hollywood voters approved Measure E in the November 2020 General Municipal Election, which enacts a three-quarter of a cent sales tax to address the COVID-19 revenue shortfall and longer-term impacts to the economy from COVID-19. Businesses are also being reminded to update point-of-sale systems accordingly.
West Hollywood is projected to lose up to $35 million in revenue over the 2020 and 2021 fiscal years, which is approximately equal to a 20% decline in revenue. The new tax rate is expected to generate up to $11 million annually.
“As the City of West Hollywood continues to respond to a shortfall in revenue due to the COVID-19 pandemic, Measure E will help the City maintain services West Hollywood residents have indicated are important, including: addressing homelessness; expanding health and mental health services; retaining local businesses and jobs; keeping public areas clean and safe; maintaining HIV and AIDS health services; and supporting disaster preparedness,” the City said in an official announcement.
For more information about Measure E visit https://www.weho.org/city-government/city-manager/community-and-legislative-affairs/legislative-affairs/measure-e.