BOTna^^
^^.
(S?
'v^af^
TO:
FROM:
SUBJECT:
DEPARTMENT OF FINANCE
February 23, 2026
Honorable Mayor and City Council
Karin Schnaider ('/^
Director of Finance ^
Discussions on Los Angeles County Essential Services Restoration Act, AB 1768 (BRYAN) - Transactions and Use Taxes for the County of Los Angeles, and a potential City of Pasadena 14 cent sales tax increase At the February 18, 2026, meeting of the Legislative Policy Committee, the Committee reviewed and discussed AB 1768 (BRYAN) - Transactions and Use Taxes for the County of Los Angeles and the potential City of Pasadena 14 cent sales tax increase.
Inquiries made at the meeting and their responses are listed below:
o How does the City's tax rate compare to other cities in the County? City Rate County Jurisdiction
Azusa10.75%Los AngelesCity
Glendora10.75%Los AngelesCity
Irwindale10.75%Los AngelesCity
Arcadia10.50%Los AngelesCity
Burbank10.50%Los AngelesCity
Duarte10.50%Los AngelesCity
Glendale10.50%Los AngelesCity
Long Beach10.50%Los AngelesCity
Monrovia10.50%Los AngelesCity
Pasadena10.50%Los AngelesCity
Sierra Madre10.50%Los AngelesCity
South Pasadena10.50%Los AngelesCity
Los Angeles9.75%Los AngelesCity
Los Angeles County9.75%Los AngelesCounty
Rosemead9.75%Los AngelesCity
San Marino9.75%Los AngelesCity
• See attached table for all cities in Los Angeles County. ^^g8I?I« ^23<^026
AB 1768 (Bryan) and Potential % Cent Sales Tax Increase February 23, 2026
o What is the estimated revenue generation of a 14 cent tax increase? The estimated revenue is $1 1 million annually.
o Has staff considered this 14 cent tax increase?
Staff are not currently working on a new sales tax measure. Staff has provided information to the City Council on various revenue enhancements, including the 1/4 cent sales tax, during past budget development meetings.
o How much will Pasadena get from the 1 % earmark from the Los Angeles County Essential Services Restoration Act?
Ballot Measure: "enacting a 1A percent (0.5%) general sales tax for 5 years, generating approximately $1 billion annually"
o Section 4.i: "One percent (1%) to provide financial support to the City of Pasadena Public Health Department and the City of Long Beach Department of Health and Human Services to safeguard their public services, to be divided between the cities proportionately based on what each city spent on core public health services over the past five fiscal years."
01%of$1 billion is $10 million
o Staff estimates that the ratio of 1 % would be split 2/3 Long Beach and 1/3 Pasadena. This will need to be confirmed. o What is the estimated value of a 1^ cent sales tax measure generated for the County from Pasadena?
The estimated revenue generated by a ^ cent sales tax measure in Pasadena is $22 million.
AB 1768 (Bryan) and Potential V^ Cent Sales Tax Increase February 23, 2026
o What is the City's 10.5% sales tax comprised of?
Pasadena's 10.5% Sales & Use Tax:
Component
State Base Sales Tax
County Tax (Los Angeles)
City Tax (Bradley Burns)
District Taxes (Total)
* Measure R
j[Transpt)^s>ynset2039
* Measure M
(Transpt, roads, transit)
* Measure A
(Homeless Services,
replaced Measure H 0.25%)A
Prop A (transit)
*
*
*
Prop C (transit)
Pasadena
(Measure I)
Rate
6.00%
0.25%
1.00%
City Revenue
Received in FY 2025
47,269,690
3.25%
0.50%
2,235,677
0.50%
2,532,947
0.50%
809,532
0.50%
3,594,389
0.50%
2,981,455
0.75%
33,195,391
ANote: FY 2025 reflects Measure H (1/4 cent sales tax); the City did not receive Measure A in FY 2025.
Staff has not done an analysis to compare existing County sales tax measures and their funding allocations to Pasadena as it relates to the proposed tax measure.
o Will AB 1768 hold the City harmless to any increase?
This information is not known at this time.
o Did the County poll for this measure?
Staff are unaware of any County polling for this measure.
Attachments: (1)
Attachment A - Los Angeles County - City Tax Rate Table Attachment A
CityRateCountyJurisdiction
Lancaster11.25% | Los AngelesCity
Palmdale11.25% | Los AngelesCity
Az usa10.75%Los AngelesCity
Compton10.75% | Los AngelesCity
Culver City10.75%Los AngelesCity
Glendora10.75% | Los AngelesCity
Irwindale10.75%Los AngelesCity
Lynwood10.75% | Los AngelesCity
Pica Rivera10.75% | Los AngelesCity
Santa Fe Springs10.75%Los AngelesCity
Santa Monica10.75% | Los AngelesCity
South El Monte10.75%Los AngelesCity
South Gate10.75% | Los AngelesCity
Alhambra10.50% | Los AngelesCity
Arcadia10.50%Los AngelesCity
Artesia10.50%Los AngelesCity
Baldwin Park10.50%Los AngelesCity
Bell Gardens10.50% | Los AngelesCity
Bellflower10.50% | Los AngelesCity
Burbank10.50%Los AngelesCity
Carson10.50% | Los AngelesCity
City of Commerce10.50%Los AngelesCity
Covina10.50% | Los AngelesCity
Cudahy10.50% | Los AngelesCity
Downey10.50%Los AngelesCity
Duarte10.50%Los AngelesCity
El Monte10.50% | Los AngelesCity
Gardena10.50% | Los AngelesCity
Glendale10.50%Los AngelesCity
Hawaiian Gardens10.50% | Los AngelesCity
Hawthorne10.50%Los AngelesCity
hluntington Park10.50% | Los AngelesCity
La Canada Flintridge10.50%Los AngelesCity
La Verne10.50% | Los AngelesCity
Lakewood10.50%Los AngelesCity
Lawndale10.50% | Los AngelesCity
Lorn ita10.50%Los AngelesCity
Long Beach10.50% | Los AngelesCity
Monrovia10.50%Los AngelesCity
Montebello10.50% | Los AngelesCity
Monterey Park10.50%Los AngelesCity
Norwalk10.50%Los AngelesCity
Paramount10.50%Los AngelesCity
Pasadena10.50%Los AngelesCity
Pomona10.50%Los AngelesCity
San Fernanda10.50%Los AngelesCity
San Gabriel10.50%Los AngelesCity
Sierra Madre10.50%Los AngelesCity
Signal Hill10.50% | Los AngelesCity
South Pasadena10.50% | Los AngelesCity
Vernon10.50%Los AngelesCity
West Hollywood10.50%Los AngelesCity
Whittier10.50% | Los AngelesCity
Avalon10.25%Los AngelesCity
Inglewood10.25% | Los AngelesCity
La Puente10.25%Los AngelesCity
Malibu10.25% | Los AngelesCity
Manhattan Beach10.25%Los AngelesCity
Torrance10.25% | Los AngelesCity
Agoura Hills9.75% | Los AngelesCity
Bell9.75%Los AngelesCity
Beverly Hills9.75% | Los AngelesCity
Bradbury9.75%Los AngelesCity
Calabasas9.75% | Los AngelesCity
Cerritos9.75%Los AngelesCity
City of Industry9.75% | Los AngelesCity
Claremont9.75%Los AngelesCity
Diamond Bar9.75% | Los AngelesCity
ElSegundo9.75% | Los AngelesCity
Hermosa Beach9.75% | Los AngelesCity
Hidden Hills9.75% | Los AngelesCity
La Habra Heights9.75%Los AngelesCity
La Mirada9.75%Los AngelesCity
Los Angeles9.75% | Los AngelesCity
Los Angeles County9.75% | Los AngelesCounty
Maywood9.75%Los AngelesCity
Patos Verdes Estates9.75% | Los AngelesCity
Rancho Palos Verdes9.75%Los AngelesCity
Redondo Beach9.75%Los AngelesCity
Rolling Hills9.75% | Los AngelesCity
Rolling Hills Estates9.75% | Los AngelesCity
Rosemead9.75% | Los AngelesCity
San Dimas9.75%Los AngelesCity
San Marino9.75%Los AngelesCity
Santa Clarita9.75%Los AngelesCity
Temple City9.75% | Los AngelesCity
Walnut9.75% | Los AngelesCity
West Covina9.75%Los AngelesCity
Westlake Village9.75%Los AngelesCity
^
yr.
£^ ^
<y/^/^7</z/<^
LEGISLATIVE INFORMATION
Home B]|| information California Law Publications Other Resources My Subscriptions My Favorites AB-1768 Transactions and use taxes: County of Los Angeles. (2025-2026) SHARE THIS: _<xDate Published: 02/09/2026 09:00 PM
CALIFORNIA LEGISLATURE— 2025-2026 REGULAR SESSION
ASSEMBLY BILLNO.1768
Introduced by Assembly Member Bryan
February 09, 2026
An act to add and repeal Chapter 3.85 (commencing with Section 7294.7) of Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1768, as introduced, Bryan. Transactions and use taxes: County of Los Angeles.
Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in any county not exceed 2%.
This bill would authorize, until December 31, 2031, the County of Los Angeles, by an ordinance adopted by the county, to levy a tax pursuant to the Transactions and Use Tax Law at a rate not to exceed 0.5% for general and special purposes, subject to voter approval, as specified. The bill would authorize those taxes to exceed the 2% limit described above.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
Vote: majority Appropriation: no Fiscal Committee: no Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 3.85 (commencing with Section 7294.7) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER 3.85. County of Los Angeles Transactions and Use Tax 7294.7. (a) Notwithstanding any other law, the County of Los Angeles may impose a transactions and use tax for general or specific purposes to support countywide programs at a rate of no more than 0.5 percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following requirements are met:
(1) The county adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement.
(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance by the applicable voting approval requirement in accordance with Article XIII C of the California Constitution.
(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.
(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. (c) If, as of December 31, 2031, an ordinance proposing a transactions and use tax has not been approved in the County of Los Angeles as authorized by subdivision (a), this chapter shall be repealed.
SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique fiscal pressures being experienced in the County of Los Angeles in providing essential programs that have been caused, at least in part, by federal funding cuts.