Los Angeles City Taxes

Los Angeles City taxes help finance an impressive array of programs, benefits, and activities. L.A. is the country's second-largest metropolis, and it technically sprawls for over 100 miles in either direction. Indeed, some demographers consider Los Angeles and San Diego to be twin cities, in that their outlying suburbs are contiguous and their economies and cultures are closely intertwined.

Given that L.A. is such a vast place, the city requires a tremendous amount of tax revenue. Where do these taxes come from? Some of the money comes from property taxes levied on real estate holders. Other moneys come from income taxes collected annually. Some of the city income comes from sales taxes and other local levies. The city also earns money from the interest on its investments.

How L.A. Taxes Get Put to Use

Los Angeles is less a monolithic city than it is a patchwork of communities bound together by economic and social codependence. Economically, however, the patches that make up the city of Los Angeles have little in common. Beverly Hills is the wealthiest single city in the United States. Compton, which is located less than ten miles from Beverly Hills, is one of the poorest communities in the country.

As a result of these economic disparities, communities often get into dogfights over who should benefit from Los Angeles City tax revenues. The poor communities require more assistance services. The richer communities want to protect their residents from the burden of paying for these services. The ongoing battle over the allocation of L.A. taxes remains a hot button political issue.