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LA Personal Finance Examiner

Sales tax savings

July 20, 12:06 PMLA Personal Finance ExaminerErik Keto
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Angelenos are now forking over nearly 10% of their purchases in sales tax. This is in part due to a half percent increase in the sales tax to help pay for public transport projects.  Measure R, which only affects LA County makes surrounding Orange, Ventura, and Riverside counties slightly cheaper to shop in.

Cost-conscience shoppers may want to postpone big-ticket purchases like TVs and computers for a time when will be visiting friends and relatives in the neighboring counties. However, the increase is not sizable enough to justify driving out your way for everyday purchases.

The tax hike imposed by Measure R adds up to another $5 per $1,000 spent in LA County. So, it may be worth it to save $20 by picking up that $4,000 Sony XBR 1080p LED TV at a Best Buy just out of county lines.

But with gas at $3 a gallon, a vehicle averaging 25 mpg will cost you about $5 more in gas to drive the round trip to one nearby counties, making only economical if you plan to spend more than $1000, or when you are already in the area.

It may be wise to plan your back-to-school shopping trip on a day you are taking the kids to Knott’s Berry Farm or visiting Grandma in San Clemente.

Please note, if you shopping for a car, it doesn’t matter where in the state you purchase, since you are required to pay the sales tax of the location you register it in.

 

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