Sales tax increases take effect: What you need to know
CATHEDRAL CITY, Calif. (KESQ) - Starting Tuesday, three valley cities will see higher sales tax rates, impacting everything from groceries to car purchases.
Tax rate changes:
- Cathedral City: 8.75% -> 9.25% (tied with Palm Springs for the highest in the Valley)
- Desert Hot Springs: 7.75% -> 8.75%
- Palm Desert: 7.75% -> 8.75%
The measures were approved by voters last November, but now a feeling of buyer's remorse.
“When I come to the store and I buy my groceries, every week go up the price… sometimes when I go to the cashier, I need to take out some groceries because I don’t have money to buy the rest things.”
Rosa Ceja, Cathedral City resident
The increase is expected to raise millions a year for city services and general maintenance. For supporters, a small sacrifice for the benefit of the community as a whole.
“Prices are one thing, taxes are another thing. Yes, if your prices are higher, your taxes as a percentage will be higher. That’s an unfortunate thing but don’t forget where our taxes go: to support our community.”
Laura Freeman, Palm Desert resident
Others say they already pay their fair share and cities should look at other ways to pay for services before handing the price tag to residents.
“We already pay high property taxes which goes to help fund the city and the sales tax is also very high… They could probably look at other areas that they’re spending on that aren’t necessary at this point and see if they can come up with some savings.”
Robert McClung, Cathedral City resident
As inflation and tariff concerns continue, some are having to cut back or shop elsewhere.
Stay with News Channel 3 for more.
