In his State of the City speech, Mayor Tom Adams proposed a sales tax increase for the city to preempt what he thinks the county will do.
The idea as I understand it is this: There is a legal limit on how much sales tax can be collected - 10.25% max I believe - so if the County approves another sales tax - which Adams believes is likely - then the money will go to LA County instead of to Monrovia, and the city will get very little of it back. However, if the city maxes out its tax rate first, then the city would get 100% of the new tax and the county would get zip.
Currently, I understand, the total sales tax in Monrovia is 9.5%.
Hmm. What do you think?
- Brad Haugaard