Frequently Asked Questions (FAQs)
What is a transactions and use (sales) tax?
Transactions and use (or "sales") tax applies to certain goods and services such as bars, restaurants, gasoline, and retail stores like clothing stores.
It does not apply to most groceries or the services of a doctor, dentist or attorney.
Read this resource from The California Department of Tax and Fee Administration (CDTFA) for full details about sales tax exemptions and exclusions.
State law provides exemptions to the sales tax, including: resale, interstate sales, intangibles, food for home consumption, candy, bottled water, natural gas, electricity and water delivered through pipes, prescription medicines, and sales to the federal government.
What is Carson's current sales tax rate?
The combined sales tax rate in the City of Carson is currently 9.5%. The City receives 1% out of that 9.5%; the rest goes to the County and State.
How would Measure K change Carson's sales tax rate?
If voters approve Measure K, the additional 0.75% sales tax would bring the sales tax rate in the city to 10.25%, which is the same sales tax collected by
dozens of other Los Angeles County cities. The City of Carson would then receive 1.75% out of that 10.25%.
How will Measure K appear on the November 2020 ballot?
"CARSON ESSENTIAL CITY SERVICES, EMERGENCY RESPONSE PROTECTION MEASURE. To maintain City services, such as public safety, natural disaster/public health emergency preparedness; 9-1-1 emergency response, protect local drinking water/environment; assist local small businesses/retain jobs; repair streets/potholes; and other general City services, shall the measure establishing a 3/4-cent general transaction and use (sales) tax providing Carson with approximately $12,000,000 annually until ended by voters, requiring public spending disclosure, all funds for Carson, be adopted?"
Is Measure K a general tax or a special tax?
Measure K is a "general tax," not a "special tax." Since this is a general tax, a simple majority voter approval ("50 percent plus one") is required to pass the sales tax measure. The transactions and use general tax proposed by Measure K would take effect only if it receives a
majority "YES" vote at the November 3, 2020, general municipal election.
How could the City use revenue from Measure K?
Every penny of revenue from Measure K is legally required to stay local and would go to Carson's General Fund, which could be used for any valid municipal purpose.
This will prevent other jurisdictions from using the 0.75%, and ensure that those funds are provided to the City and its residents.
Fiscal safeguards are in place to show how the tax is collected, managed, and expended.
It is estimated that Measure K could generate approximately $12 million for the funding of general City services (until ended by voters), such as:
- Public safety, natural disaster/public health emergency preparedness
- 9-1-1 emergency response
- Street/pothole/sidewalk repair
- Local drinking water/environment protection
- Local small business assistance/job retention
If Measure K passes, when would it go into effect?
If approved, Measure K would begin in January 2021.