Quarterly Sales Tax Updates

Print Feedback

Font Size: + -

Sales and Use Tax is one of the City's major revenue sources. Sales tax applies to all retail sales of merchandise (tangible personal property) in the state. Retailers are required to obtain a seller’s permit and to report and pay sales tax to the California Department of Tax and Fee Administration (CDTFA - formerly the State Board of Equalization). Collections are made by the State based on a percentage of taxable sales within the Los Angeles County. The total sales tax percentage within the City is currently 9.50% with portions allocated to the State (6.50%), City of Manhattan Beach (1.00%) and Los Angeles County (2.00%).

On November 5, 2024, Manhattan Beach voters approved a City measure (Measure MMB), which is a one-half cent (0.50%) sales tax measure to support general City services including keeping local streets, sidewalks, infrastructure, and parks safe, clean, and well maintained; repairing/upgrading aging community facilities; fixing potholes; and improving parking availability and traffic safety.

Voters also approved a Los Angeles County measure (Measure A), which is a separate one-half cent (0.50%) sales tax measure to support homeless programs, that also repealed a prior quarter cent (0.25%) sales tax measure (Measure H). Together, these two measures will adjust the current sales tax rate from 9.50% to 10.25% effective April 1, 2025. The California Department of Tax and Fee Administration (CDTFA) is responsible for implementing the new sales tax and will be sending a Special Notice to all taxpayers with information regarding the new sales and use tax rates, along with instructions to update their point of sale systems by April 1, 2025. This notice will be sent at least 30 days before the April 1, 2025 effective date and will be transmitted via e-notice or a letter format that has a “Special Notice” on the top. The CDTFA will also post the City’s new tax rate on their website along with an Explanation of Tax rate Changes Operative April 1, 2025.