Local Taxes are taxes that go into the General Fund and pay for vital city services like police.

Sales Tax comes from the sale of goods, from restaurants to car dealerships.  Sales tax is .07375% of every taxable sale and first goes to the State of California Board of Equalization.  The state returns to the cities 1% of that revenue to the city where the sale was made.  Cities that have more businesses selling taxable items receive back more money, because the sales were made in their city.  Sales tax goes straight to the General Fund.