California legislators are sending a bill to Gov. Gavin Newsom that could allow about a dozen counties and cities to raise their sales taxes higher than the usual limit. This has drawn criticism, particularly regarding the unexpected support from two Republican leaders for these potential tax increases.
Under current state law, cities and counties can seek a special exception from Congress to exceed a 2% sales tax cap. However, Republicans in the state Legislature have generally been against such measures, urging local governments to practice more fiscal restraint.
Last week, during the final vote, two Republicans—Heath Flora and Juan Alaniz, leaders of the California House Republican Caucus—voted in favor of the bill that would enable these sales tax hikes. This was surprising, as the rest of the Republican contingent either voted against the bill or abstained.
According to someone familiar with the situation, Flora’s vote, especially since he had the lowest support among incumbent lawmakers in the June primary, has caused significant “frustration” among both lawmakers and Republican donors.
David Klein from the California Taxpayers Association stated, “We have consistently opposed many bills aimed at increasing local taxes. It’s essential that lawmakers start resisting these proposals because they substantially raise the cost of living in California.” He added that the cap should be preserved rather than waived, pointing out that each session sees an influx of bills attempting to bypass it.
This year, places like Santa Barbara County and cities such as Palo Alto and Santa Cruz are asking for exceptions to the cap in order to propose tax increases to voters. In response, Democrats argue that these localities require more funding to compensate for federal cuts to health and human services.
The bill, known as Senate Bill 762, is pending one more procedural vote in the California Senate before it reaches Newsom. Notably, the votes from Flora and Alaniz were crucial in achieving the two-thirds majority necessary for the bill’s passage, particularly since some Democrats also abstained.
Rep. Carl DeMaio (R-San Diego) expressed concern at a hearing last month, emphasizing, “Now is not the time to raise taxes. It’s a time for families and small businesses to tighten their belts.”
The California Post sought clarification from Congressional Republicans regarding Flora and Alaniz’s affirmative votes. Flora, who became minority leader in summer 2025, has faced criticism for insufficiently opposing the Democratic agenda and for being too friendly with lobbyists. He had previously cast a significant vote in 2017 to extend a contentious cap-and-trade program, but did not participate in its re-extension last fall.
Last October, Flora faced issues regarding allegations of extramarital affairs with lobbyists and questions about his residency in his district, leading to complaints about his lack of responsiveness to constituents. These issues contributed to the San Joaquin and Stanislaus County Republican committees declining to back his bid for a final two-year term this year.
Stanislaus County Republican Party Chairman Joel Campos expressed disappointment, citing poor communication from Flora’s office, lack of visibility in the district, and a general absence of support for the Republican Party as major concerns.
While Flora advanced to the November runoff, he garnered only 30.6% of the vote, the lowest for any incumbent in the last election cycle.
Klein noted that asking for more than the 2% tax limit is becoming increasingly common. In the past, Los Angeles County made moves to exceed this exact cap.
California counties boast some of the highest sales taxes nationwide, with certain areas, like Lancaster and Palmdale, nearing a total sales tax rate of 12%.
Klein remarked, “These requests for bills over the cap are escalating. The cap, which used to be solid, has seen numerous exemptions in recent years, and is clearly not functioning as intended.”
