Sales and use tax rate rises to 11 percent Oct. 1

Monrovia's combined sales and use tax rate will rise from 10.5% to 11% starting Oct. 1. The increase reflects Measure ER, the Essential Services Restoration Act, a 0.5% countywide tax approved by LA County voters in June.

A bit of background:

In 2019 Monrovians voted themselves a .75 sales tax increase, to raise the rate to 10.25%, which was the maximum allowed by law, because city leaders figured if we didn't tax ourselves, the county would, but if we raised the tax to the legal maximum then other taxes wouldn't apply to us because we were already paying the maximum, and paying it to ourselves.

So how is it we will be paying 11 percent? I asked City Manager Dylan Feik if the state has raised the tax limit.

He said it has.

Feik writes that "when Monrovia presented Measure K to the community in 2019, one of the key reasons to do this was that state law capped the local sales tax rate at 2.0%. Considering the rate was 1.25% in Monrovia at the time, many cities in the San Gabriel Valley proposed a 0.75 increase. Our measure was approved.

"LA County wanted to extend and increase their homeless tax (Measure H) and they lobbied the State to allow an increase in the sales tax cap to do so. The state legislature allowed them to do so and in November 2024, LA County voters approved Measure A which extended the homeless services tax but also increased the amount collected.

"Measure ER, which was approved by voters in June 2026, did the exact same thing and the cap was increased again."

 
- Brad Haugaard