Politics
Long Beach Raises Utility Tax Rates Starting August, Property Tax Changes Follow
Long Beach residents will encounter the first effects of the city's adopted 2026-27 budget through higher utility users tax rates on August bills, followed by property tax adjustments in the 2027 assessment cycle.
How we reported this
The Long Beach City Council passed the Fiscal Year 2027 budget on June 16, 2026. The measure raises the utility users tax from 5 percent to 7 percent on electricity and natural gas accounts. It also schedules a reassessment of commercial property values under existing county rules. These steps affect the 470,000 residents who pay city utility bills and the owners of 142,000 housing units.
Why the changes arrive now
City finance staff prepared the budget after the county assessor released updated property rolls in May 2026. Revenue from the prior year fell short of projections by $18 million in the general fund. The council therefore approved the tax adjustment to close the gap without new borrowing. The ordinance sets the utility tax increase for August 1 and directs the county to apply new commercial valuations on the January 2027 tax roll.
Long Beach households that use 500 kilowatt-hours of electricity per month will pay an extra $6 to $8 on their August statements. Renters will see the increase folded into monthly charges from landlords who pass through utility costs. Owners of single-family homes face no immediate property tax shift until the 2027 notices arrive in late fall of next year.
Timeline for residents
August 2026 marks the first visible change on utility statements. January 2027 brings the second wave when the county mails property tax bills that reflect the new commercial assessments. City staff projects that 12,000 commercial parcels will see higher valuations, which in turn supports the general fund used for police patrols in the downtown corridor and street repairs along Atlantic Avenue. The full cycle ends in June 2027 when the next annual budget resets rates again.
Policy analysts at the California Public Policy Institute note that utility tax collections typically appear within 30 days of the rate change, while property tax impacts reach residents after the county assessment appeals window closes in March. Local advocates note that fixed-income households in the 90813 ZIP code have already contacted the city’s utility assistance program to apply for payment plans before the August bills arrive.
The next public step occurs at the city’s August 4 budget workshop, where staff will present a six-month revenue report. Residents can review the full ordinance and payment schedule on the city website under the finance department section.