Los Angeles County Sees Sales Tax Decline of 50-75% from Coronavirus Shutdowns

Sales tax and other tax revenue streams date are starting to trickle out concerning the ongoing Wuhan virus shutdowns. Any hope of having sound budget projections in 2020 is out the window.

Los Angeles County for example is not only projecting a massive decline right now, but a steep tax decline for next year as well.

As the nation moves into a second month of confronting the global health pandemic, the toll it is placing on local and state governments is coming into clearer and frantic focus. Los Angeles County, the most populous in the country with more than 10 million residents, is facing a 50 to 75 percent decline in sales tax revenue from March through the end of the fiscal year, said Sachi A. Hamai, the county’s chief executive officer. The county also estimates a 25 percent reduction in sales-tax-based revenue in next fiscal year.

Source: Governing

 

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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