The Calabasas City Council has approved placing a locally controlled one-cent (1¢) sales tax measure on a May 5 all-mail ballot, allowing Calabasas voters to decide whether to adopt the measure.

If approved by voters, the measure would generate approximately $5.3 million annually to help maintain public safety, City services, and infrastructure. The measure would remain in effect until ended by voters and includes requirements for audits, public reporting, and local control of funds.

The timing of this measure is driven by external factors beyond the City’s control.

Los Angeles County has publicly discussed placing a countywide sales tax on an upcoming ballot. State law limits the total sales tax rate that can be imposed within any city. Calabasas is approaching that legal limit.

If the County or another regional agency acts first, it could use up the City’s remaining sales tax capacity, limiting or eliminating Calabasas’ ability to establish a locally controlled revenue source in the future.

In simple terms:

Residents and visitors would still pay the tax, but Calabasas would not control how those dollars are spent.

Placing this measure on the ballot now allows Calabasas voters, not outside agencies, to decide how locally generated revenue should be used.

If approved by voters, locally controlled funds would help:

All funds would remain under local control and be subject to independent audits, public reporting, and transparency requirements.

Approximately 57% of all sales tax collected in Calabasas is paid by non-residents, including shoppers, diners, and visitors.

This helps ensure that those who benefit from Calabasas services and amenities contribute to their upkeep.

A one-cent (1¢) sales tax equals one penny on every dollar spent on taxable purchases.

At the full 10.75% rate:

• An additional one penny per $1 spent
• On average, approximately $8.25 per month, with non-residents paying the majority of sales tax collected in the City

Many nearby cities already have higher sales tax rates, including:

• Santa Monica – 10.75%
• Pasadena – 10.5%
• Glendale – 10.5%
• Burbank – 10.5%
• West Hollywood – 10.5%

Calabasas’ current rate is 9.75%.

Preserving local control means ensuring that:

• Revenue generated in Calabasas stays in Calabasas
• Spending decisions are made by locally elected officials with public input through City Council meetings, budget hearings, and publicly adopted spending plans
• Funds are used for services that directly benefit Calabasas residents

If remaining sales tax capacity is used by the County first, revenue generated locally would be allocated according to countywide priorities rather than Calabasas’ needs.

State law caps the total sales tax rate at 10.75%.

If Los Angeles County or a regional agency uses the remaining capacity first:

• The sales tax rate in Calabasas would still increase
• Residents and visitors would still pay the higher rate
• The additional revenue would be controlled by the County or regional agency
• Funds would be distributed based on countywide formulas rather than local priorities

Yes.

Under Los Angeles County Measure H, a quarter-cent (0.25%) sales tax collected locally was directed to Los Angeles County. From Calabasas alone, this amounted to approximately $1.35 million annually sent to the County. With the passage of County Measure A, that tax was doubled, increasing the amount sent to the County to approximately $2.7 million annually, while Calabasas and the four neighboring cities combined received approximately $360,000 annually through the five-city Council of Governments for homeless services.

This raises an important question: Should money generated in Calabasas stay in Calabasas to serve Calabasas residents?

Calabasas has a long history of responsible fiscal management, including balanced budgets and strong reserves. However, conditions have changed.

Key factors include:

• Rising costs for public safety, wildfire preparedness, insurance, and infrastructure
• A structural General Fund deficit projected to grow without corrective action
• More than $23.6 million in unfunded projects and initiatives
• Limited local revenue retention

Calabasas retains:

• Only 1 cent of every sales tax dollar generated locally
• Just 4.7% of property tax revenues, one of the lowest shares among Los Angeles County cities

Without additional locally controlled revenue, service reductions and deferred maintenance may occur over time.

The City Council evaluated multiple revenue options, including:

• Property tax adjustments
• A utility users tax
• Increases to the transient occupancy (“hotel bed”) tax
• Franchise fee adjustments

A locally controlled sales tax was selected because it:

• Provides stable, ongoing revenue
• Is shared broadly by residents and visitors
• Helps preserve local control
• Allows non-residents to contribute toward services they use

Voters will be asked whether to adopt a locally controlled one-cent (1¢) transactions and use tax that:

• Generates approximately $5.3 million annually
• Remains in effect until ended by voters
• Requires audits, oversight, and public reporting
• Keeps funds in Calabasas for Calabasas services

Any local sales tax measure would include strong financial oversight and public reporting. The City would provide regular updates on how funds are used and ensure revenues support essential services and community priorities.

No. This measure would not replace existing taxes or fees. It would provide a stable, locally controlled revenue source to help maintain essential services and reduce uncertainty from outside funding decisions.

No. This is not about opposing healthcare, mental health, or regional services. Those services are important. This is about ensuring Calabasas can continue to fund the services residents rely on every day and that local tax dollars remain under local control.

No. If the City places it on the ballot for voters to decide, and it is approved, neither the state nor the county can take the money. It remains in Calabasas under local control benefiting Calabasas residents and businesses.

Calabasas voters will decide. Any sales tax measure must be approved by the community through an election.

This election will be conducted as an all-mail ballot election.

Voters can expect:

• Ballots mailed directly to all registered voters
• No in-person polling places
• Ballots returned by mail or official drop-off locations
• Instructions, deadlines, and postage included with ballot materials

The City is committed to transparency and public information.

Residents are encouraged to:

• Review City Council agendas and staff reports
• Watch or attend public meetings
• Visit this page (www.CityofCalabasas.com/Elections) for updates

Questions may be submitted to Info@CityofCalabasas.com.