Long Beach, CA – March 27, 2025 – The City of Long Beach has taken legal action against the California Department of Tax and Fee Administration (CDTFA) in an effort to implement a disputed sales tax increase, even as it defends itself against a lawsuit from the Long Beach Reform Coalition (LBRC) challenging the legality of the tax hike.
At the heart of the issue is a proposed quarter-cent sales tax increase that would raise the city’s sales tax rate from 10.25% to 10.75%—a move the City Council approved without a direct vote from residents. The LBRC contends that the increase is unconstitutional under California law, which requires voter approval for local tax hikes.
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. As a result, the state agency confirmed that the city’s sales tax rate would rise only to 10.5% on April 1, reflecting the previously approved Los Angeles County Measure A increase, but not the additional quarter-percent sought by the city.
Despite the CDTFA’s rejection, Long Beach has filed a lawsuit against the state tax authority, arguing that its interpretation of voter intent supports the higher tax rate. Meanwhile, LBRC continues to challenge the tax hike in court, creating what the coalition describes as a “two-front battle” over the city’s attempt to collect additional revenue…