Culver City Observer -

The new sales tax took effect in Culver City along with 50 other cities in California effect as of Monday, April 1. Sales tax in Culver City jumped from 10 percent to 10.25 percent.

Culver City hiked up 0.25 percent. Culver City's sales tax is now three percent over the state of California's minimum sales tax, which is 7.25 percent, according to the San Francisco Gate.

In 2013 as the nation was trying to recover from the recession votes pasted a ½% increase in the sales tax for Culver City. Residents and businesses were assured that the tax, which would sunset (expire) in 2023 was temporary and would not be needed after 2013.

Former City CFO Jeff Muir told the council last year that the temporary tax would need to be made permanent and that the additional ¼% sales tax would be required.

Culver City now joins 25 other cities in California unable to pat their bill without a sales tax of 10% or more. The only city that exceeds Culver City’s 10.25% sales tax is Santa Fe Springs with a rate of 10.50%.

According to CaliforniaCityFinance.com the driving force behind many local sales tax increases is skyrocketing public pension costs and public employee retiree healthcare. Research has shown that local sales tax increases are concentrated in California localities that have the largest pension problems.[45]

In an effort to increase the chances of passing a local sales tax, some local governments engage in budgetary games in which they place a sales tax measure on the ballot to help fund a politically popular service (e.g., public safety), and if the sales tax passes, it enables the local government to free up other existing taxpayer funds that can then be spent on less politically popular items such as high public employee salaries and benefits according to the Howard Jarvis Taxpayers Association.

Online retailers are no longer immune from sales tax as California law now also requires out-of-state retailers like Amazon to collect sales tax. The new rules were made by lawmakers to help brick-and-mortar businesses who have lost sales to their online counterparts.