Los Angeles County Implements New Sales Tax Amid Measure ER Approval

On Thursday, Los Angeles County launched a 10.25 percent sales tax, following the approval of Measure ER by voters just four months prior.

The Essential Services Restoration Act, known as Measure ER, received significant support in L.A. County earlier this year, leading to a half-cent increase in the sales tax. This change raises the total rate from 9.75 percent to 10.25 percent, aimed at bolstering health care and other essential services.

Simply put, for each $100 spent on taxable items, there’s an additional 50 cents added due to Measure ER, which brings the total to $110.25. The increase is meant to be temporary, lasting five years until October 1, 2031. It is expected to generate approximately $1 billion each year.

Supporters believe this measure will greatly assist around 700,000 residents in L.A. County who may lose their health insurance due to cuts in federal Medi-Cal funding. They argue that providing health care support through Measure ER can prevent individuals from ending up in local emergency rooms with more severe health issues.

Advocates assert that the measure will help bridge the funding gap caused by federal cuts, potentially saving public health facilities and programs.

On the flip side, some critics argue that this tax increase is “unreasonable and unfairly harsh” given the already high tax rates in the county. L.A. County Supervisor Kathryn Barger expressed that residents are increasingly burdened by one of the highest metropolitan sales taxes in the country.

“This proposed half-cent increase would push us even higher, making our county less affordable for families and less appealing for consumers and businesses alike,” Barger stated.

She emphasized her commitment to ensuring that the funds raised are handled responsibly, with accountable management and measurable results. “Taxpayers deserve clarity on how these funds are spent and whether the promised benefits materialize,” she added.

Additionally, the Libertarian Party of L.A. County has taken legal action against the implementation of this tax.

According to reports, the expenditures from the tax revenue will be monitored through annual audits conducted by the Auditor-Controller, along with public reporting and oversight from a nine-member Citizens’ Oversight Committee, which includes members appointed by the Board of Supervisors and the Director of the Department of Public Health.