Sales Tax Facts:
Why Shop Local?
- Sales tax is a major source of revenue for the
City.
- When purchases are made locally and sales tax
is applied, the City receives 1% of the taxable sale.
- Purchases made outside of the City generate no
revenue for the City.
Where does the rest of the sales tax go?
- 6 % State
- 1.0 % City where the purchase is made
- 1.25 % County and transportation funds
What percentage of the City’s budget is based
on sales tax each year?
- Currently 41% of the City’s general fund
is derived from sales tax.
How is the sales tax revenue spent within the City?
- Sales tax revenue is the primary source of funding
for projects, programs, and services the community has told the
City they would like, such as the Cross Valley Connector and the
Community Center currently under construction in Old Town Newhall.
- This revenue also supplies funding for road maintenance
throughout the City.
Did you know…..
- For each purchase of a vehicle from local dealerships
averaging $30,000, $2,475 of sales tax is generated and the City
receives $300 of that revenue.
- A family of four that eats out at restaurants
located within the City 24 times a year (twice a month) and spends
an average of $40 each meal, generates $79.20 of sales tax and
the City receives $9.60.
- For those of you spending close to $4,000 a year
on home improvement supplies at home improvement stores located
within the City, $330 is generated in sales tax, of which the City
receives $40.
 More
about the Shop City of Santa Clarita Campaign
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