Cerritos leaders clarify property tax revenue and sales tax rate implications for residents

Cerritos residents will soon gain a clearer understanding of the city's unique property tax situation following a recent city council meeting. During discussions on May 7, 2025, officials emphasized that Cerritos does not rely heavily on property tax revenues, which has led to misconceptions among residents regarding their tax contributions.

City officials explained that Cerritos receives only a small portion of property tax revenue, significantly less than many neighboring cities. While other municipalities often see a balance between property tax and sales tax revenues, Cerritos stands out with approximately ten times more revenue from sales tax—about $40 million—compared to just $4 to $5 million from property tax. This discrepancy is largely due to historical factors, including Proposition 13, which has limited property tax growth since its implementation decades ago.

The council also highlighted ongoing efforts to maximize funding from the county, ensuring that residents receive their fair share of tax revenues. City management is actively pursuing additional grants and revenue opportunities across various departments, including community development and public works.

In terms of sales tax, Cerritos currently has a rate of 9.75%, which is the lowest among surrounding cities, many of which have rates of 10.5%. This rate was recently adjusted to support homeless funding initiatives. The city has the potential to increase its sales tax rate to a maximum of 10.75%, as allowed by state law, but officials noted that any changes would require careful consideration and community input.

The meeting underscored the importance of transparency regarding tax revenues and the city's financial strategies. As Cerritos continues to navigate its unique fiscal landscape, residents can expect further updates on efforts to enhance funding and services in the community.