Malibu’s Voter-Approved Sales Tax Increase to Support City Services Goes into Effect April 1
The City of Malibu’s voter-approved sales tax increase from 9.5% to 10% to support City services goes into effect for purchases in City limits on April 1. In the General Municipal Elections on November 8, 2022, 52.53% of Malibu voters approved “Measure MC,” a ½ cent increase in the Transactions and Use (sales) Tax to support City services to the community. The measure required a simple majority to pass.
The official ballot question for Measure MC was: “To support such city services as public safety, crime and fire prevention, addressing homelessness, keeping public areas safe and clean, preventing speeding and reckless driving, protecting coastal waters and beaches from pollution, preserving natural areas, supporting local businesses, and other general city services; shall a measure be adopted establishing a 1/2¢ transactions and use (sales) tax providing approximately $3,000,000 annually until ended by voters, requiring public spending disclosures and local control of funds?”
The Transactions and Use tax applies to goods, some services, and tangible personal property. It is applied with the purchase as an additional cost. There are some cases where the sales tax would be applied to purchases made outside of the City of Malibu. For example, if a person living in Malibu purchases a vehicle outside of the City, this tax will apply, as it is based on the zip code of the residence where the car is registered.
Important limitations and accountability/transparency safeguards include the following:
- Basic necessities like groceries and prescription medications will not be taxed.
- Funds generated by Measure MC will be used by the City of Malibu to provide general services for the community.
- By law, the County and State cannot take the funds from Malibu.
- Mandatory financial audits and annual public reports will be conducted to ensure that the funds are spent properly.
For more information about how the tax increase will be carried out in Malibu, see the FAQs.
For further questions, please contact the City Clerk at email@example.com or visit the Elections webpage (click Measures).