Sophomore Cathryn Collier fills up a friend's car with gas. With La Mirada being the area with the highest sales tax in California, Biola students are reconsidering where their money is being spent. Ashleigh Fox/THE CHIMES
La Mirada increased their sales tax at the beginning of April, tying with Pico Rivera and South Gate as the city with the highest sales tax in the state of California. As a result of Measure I, voted for in November 2012, the increase raised sales taxes from 9 to 10 percent.
Cities generally raise their sales tax when they are looking to generate a positive cash flow, according to Philip Woodward, associate professor of accounting .
“They [cities] do it to raise tax revenue,” said Woodward
“They usually increase sales tax when they need more income. Especially to work on things in the area they’re taxing,” Bartels said.
The tax increase will raise an expected $20 – 25 million dollars, according to the La Mirada city website. Money made from the tax will go toward infrastructure, which includes street, sidewalk and sewer fixtures.The tax will be valid until 2018.
Students respond to the increase
Some students feel that their shopping habits will stay the same even with the increase, such as Samantha Olson, a freshman political science major and Lauren Hoenecke, a freshman biology major.
“It’s unfortunate, but we need to prioritize what we buy,” Olson said. “We should put more thought into where our money is going.”
Olson, who is from Oregon, said she was initially shocked at sales tax, having been so used to a concrete price tag. Hoenecke, on the other hand, said she doesn’t do much shopping and won’t change anything.
Other students will see definite changes in their spending habits. Sam Roupe, a junior physical education major, foresees making more purchases when she is home in San Fernando, where sales tax is still 9 percent, as well as doing more online shopping.
How citizens usually respond
Woodward noted that the response to an increase in sales tax from the community is usually negative.
“They may shop in other cities,” said Woodward.
People already feel like they are doing their part and paying enough in taxes for the upkeep of the city, Bartels said. Sometimes, people will even travel to other cities or states in order to spend less money. Bartels, who lives in Washington, says some people go to Oregon for a weekend shopping trip just to save money. Oregon has no sales tax.
“The money they save can be put to better use for more enjoyable purposes,” Bartels said.
Bartels admitted to doing so as well, saying that he once held off on buying a $200 video camera until he was able to go to Oregon.
“I knew I was going to Oregon, so I waited,” Bartels said. “I was able to save $20 that would have been part of sales tax back home.”