Los Angeles County voters have approved Measure ER, a ballot initiative that will increase the local sales tax by half a cent. The measure, which passed by more than 25,000 votes, aims to generate approximately $1 billion annually to fund hospitals, local health departments, and insurance for low-income residents.
The Los Angeles County Registrar’s Office certified the primary election results, with the Board of Supervisors expected to officially declare the election outcome. The tax increase will raise the current 9.75% sales tax rate to 10.25%. This change will affect the prices of various goods, including furniture and electronics, at a time when many residents are already contending with rising costs for essentials like gas and groceries.
Critics argue that the tax hike, which will go into effect on October 1, 2026, and is scheduled to expire in 2031, could prompt residents to shop in neighboring counties to avoid higher prices. California already has one of the highest state sales tax rates in the nation, and with local additions, some areas of Los Angeles can see tax rates approaching 12%.
Aidan Chao of the Los Angeles County Taxpayers Association expressed concern that the increased tax rate would encourage consumers to travel to areas with lower taxes. "When you're sitting at 12% sales tax up in Lancaster, 11.75% up in Lancaster and Palmdale … you're going to jump across the border to Orange County and buy and save 3%," Chao stated.
The financial impact of Measure ER could be significant for consumers. For instance, a $40,000 car purchase would incur an additional $200 in sales tax, a $3,000 living room set would see an extra $20 in taxes, and an iPhone priced at $1,000 would cost more than $5 extra. Chao noted that these incremental costs can be substantial for individuals and families managing tight budgets.
Supporters of Measure ER, including nonprofit St. John’s Community Health and the Service Employees International Union, promoted the measure as "half a penny to save lives," intended to offset federal funding cuts. While advocates assert that the funds will support healthcare services, the revenues will be allocated to the county's general fund for distribution by elected officials.
Some voters who opposed the measure expressed skepticism about the effectiveness of tax increases. Warren Johnson, who voted against the tax, stated, "We believed, we were taught to keep increasing taxes, it’s going to help — we see it’s not helping." Others, like Kris Cuyvers, who also voted no, indicated a willingness to shop outside the county to save money.
Supporters acknowledged the importance of responsible spending. Chris Maese, who voted for Measure ER, said, "I think we need to figure out a way to make sure it’s being spent responsibly and then people would be more willing to give more."
Adam Michel, director of tax policy studies at the Cato Institute, described tax hikes as a characteristic of liberal cities, suggesting that they may mask underlying governance issues rather than provide comprehensive solutions. David Kline, president of the California Taxpayers Association, warned that rising tax rates can influence consumer behavior, potentially leading to decreased spending on larger purchases when rates reach double digits. Kline also pointed out that the projected $1 billion in annual revenue represents a $1 billion annual cost to taxpayers.