The Bloc LA
Revenue breakdown
FY2025-26 · all funds · $14.9B total budget
The city budget has three layers — only the first is made up of taxes residents pay directly.
$14.9B
Total
General Fund — major taxes
$6.0B (40%)
The 8 tax & fee sources shown in detail below.
Other General Fund sources
$1.9B (13%)
State/federal subventions, parking fines, interest earnings, miscellaneous transfers, and inter-fund loans. Not separately line-itemed in the public summary.
Enterprise & special funds
$7.0B (47%)
Self-funded operations: Sanitation (~$1.1B from trash fees), Sewer (~$1B from sewer fees), Convention Center (~$200M), plus Prop A/C/Measure M transit funds, federal and state grants, bond proceeds, and dozens of smaller special-purpose funds.
Special fund totals are approximate based on CAO FY2025-26 budget summary. Enterprise fund revenues (trash fees, sewer charges) are not collected as taxes — they are user fees paid by rate payers.
The $6.0B in direct taxes and fees the city collects — the part the Mayor and Council control most directly.
$6.0B
Direct taxes
$2.8B
46.2% of direct taxes
Annual tax on real estate based on assessed value — LA's single largest revenue source. Prop 13 caps annual increases at 2% for existing owners, so new sales and construction drive most growth.
$805M
13.4% of direct taxes
Tax on businesses operating in LA, calculated on gross receipts or number of employees depending on industry. Applies to ~200,000 registered businesses citywide.
$774M
12.9% of direct taxes
Revenue from building permits, business licenses, zoning applications, and fee-for-service charges. Grows with construction activity and enforcement levels.
$702M
11.7% of direct taxes
10% tax on electricity, gas, telephone, and cable bills for city residents and businesses. One of the most stable sources — everyone pays utilities regardless of the economy.
$280M
4.7% of direct taxes
Annual dividend from the LA Department of Water & Power (LADWP) to the general fund. As a city-owned utility, DWP transfers a portion of its revenue to support city operations.
$295M
4.9% of direct taxes
14% tax on hotel stays in the city. Sensitive to tourism — major events like the 2028 Olympics are expected to spike this revenue significantly.
$194M
3.2% of direct taxes
Tax on real estate sales — $1.10 per $1,000 of sale price, plus Measure ULA's 4–5.5% surcharge on sales above $5M (enacted 2023). Volatile and tied to housing market conditions.
$180M
3.0% of direct taxes
City's share of the California state sales tax — roughly 1 cent per dollar of purchases. Lower than expected because LA shares receipts with the county and special districts.
Source: CAO FY2025-26 Adopted Budget Revenue Outlook · Back to budget dashboard