Measure ER in Los Angeles County, a sales tax increase of 0.5%, has levitated.
In the final Election Night update of the vote, “No” on Measure ER was ahead with 53.11%. In each subsequent update, the “Yes” vote lifted a little further off the ground. On Monday, “Yes” moved above “No” to lead with 50.35%.
If passed, Measure ER will raise the countywide sales tax from 9.75% to 10.25%. In many of the 88 cities in L.A. County the rate will be even higher due to local sales taxes. The city of Los Angeles doesn’t have any additional sales taxes, at least not yet. That could change in November.
The Los Angeles city firefighters’ union has put forward a “citizens’ initiative” tax increase proposal that would add another 0.5% to the sales tax rate in the city of L.A., potentially pushing it up to 10.75%.
According to state law, local sales taxes are capped at 2% above the state sales tax rate, which currently is 7.25%, so no one in California should ever be paying a sales tax higher than 9.25%. How does it happen? The state Legislature changes the law whenever a city asks for an exemption from the cap.Most recently, Assembly Bill 1768 was passed to legalize the 0.5% Measure ER increase and a similar measure in Contra Costa County. Voters in Contra Costa said “No” to the tax increase on election night and it has not levitated to “Yes.” The air must be heavier up there.
Without AB 1768, these tax increases would not have been legal, so an “urgency” clause was added to the bill that allowed the new law to take effect immediately. Gov. Gavin Newsom signed it on the night of June 1, just hours before the polls opened on June 2.
“Urgency” clauses require a bill to pass with a two-thirds vote in each house of the Legislature. Inexplicably, six Republicans in the Assembly and one in the Senate agreed to vote for AB 1768, thereby allowing many Democrats to skip the politically risky vote to enable yet another tax hike on working people.
Tax increases are unpopular. That’s why a cottage industry of consultants conducts polling and message testing to help local governments and special interests find just the right combination of words and numbers to sell voters on the need to approve them. For Measure ER, the words were “half a penny” vs. “collapse” of the health care system. Proponents of the tax increase ran a digital ad showing a toe tag on the feet of a body on a slab in the morgue. Subtle.
What many voters don’t know and governments hope they never find out is that the people of California have the right to use the initiative power to repeal any tax, fee, assessment or charge. The signature requirement is lower than for other local initiatives, capped by the state constitution at 5% of the number of votes for all candidates for governor in the last general election.
In Los Angeles County, that number is currently 119,462. That’s how many valid signatures of registered voters in L.A. County are needed to qualify a tax repeal measure for the ballot. For perspective, the county currently has about 5.9 million registered voters.
This initiative power to repeal or reduce any tax, fee, assessment or charge is brought to you by Proposition 218, approved by voters in 1996.
In November 2024, L.A. County voters approved Measure A, a 0.5% sales tax that grabs a billion dollars a year to fund contracts for homelessness services. The tax will continue, the measure explained, “until ended by voters.” Ended how?
With 119,462 valid signatures, an initiative to repeal the Measure A sales tax could be on the ballot.
L.A. County currently has four separate 0.5% sales taxes to fund Metro, the public transportation system that’s iffy for transportation but powerfully enabled to force high-density development into low-density neighborhoods.
With 119,462 valid signatures – or with a number of signatures equal to 5% of total votes for governor in L.A. County this November – “defund Metro” measures could be on the ballot.
When taxpayers don’t see value for what they’re paying, that’s what should happen.
Write Susan@SusanShelley.com and follow her on X @Susan_Shelley