Few Know Where Tax Dollars Go

A recent survey of Laguna Niguel residents uncovered “an alarming lack of knowledge” about sales tax receipts, according to Laguna Niguel City Manager Tim Casey. Most respondents knew that the state benefited from the sales tax, but less than a quarter knew that their hometown recouped tax dollars.

“People know they’re paying sales tax, but where they don’t put two and two together is that some of it comes back to the city,” said Terry Saverson, executive director of the El Cajon Chamber of Commerce.

“That’s where campaigns are helpful,” Saverson said. “It raises the awareness level, it makes people stop and think that, ‘Because I shop (locally) it comes back to me in real, hard benefits.’ ”

In Orange County, the total sales tax is 7.75%. The state levies a 6% tax, local cities (or the county, in unincorporated areas) charge 1%, the county levies 0.25% for highways and transportation, and the Orange County Transportation Authority collects 0.5%.

In Los Angeles County, the total tax is 8.25%. The state levies a 6% tax, cities charge a 1% tax and three transportation-related taxes account for the remaining 1.25%.