Los Angeles County Implements 10.25% Sales Tax Following Measure ER Approval

Los Angeles County introduced a 10.25 percent sales tax on Thursday, four months after voters approved Measure ER. The Essential Services Restoration Act (Measure ER) passed in L.A. County earlier this year, raising the sales tax by a half-cent to support health care and other essential services, increasing it from 9.75 percent to 10.25 percent. For every $100 in taxable purchases, Measure ER adds 50 cents in tax, bringing the total to $110.25. The increase is temporary, as Measure ER allows the tax to remain in effect for five years until October 1, 2031, and is projected to generate about $1 billion annually. Supporters of the measure state that it will aid approximately 700,000 L.A. County residents facing loss of health insurance due to reductions in federal funding for Medi-Cal. Proponents argue that Measure ER will provide necessary health care support to prevent individuals from seeking emergency care for more serious illnesses. The reduction in federal funding will also affect public hospitals and clinics, but supporters believe that Measure ER will compensate for the lost funds and help preserve public health care facilities and programs. Critics, however, argue that the tax is unreasonable and harsh, especially in a county with an already high tax burden. L.A. County Supervisor Kathryn Barger stated that residents are financially strained with one of the highest metropolitan sales taxes in the nation. She expressed concern that the proposed half-cent increase would further decrease affordability for families and deter consumers and businesses. Barger emphasized the need for accountability in managing the revenues generated, stating that taxpayers deserve transparency regarding fund allocation and promised outcomes. The Libertarian Party of L.A. County has also filed a lawsuit against the tax. According to LA Mag, spending from the tax revenue will be monitored through annual audits by the Auditor-Controller, public reporting, and a nine-member Citizens’ Oversight Committee, which includes the Director of the Department of Public Health and other members appointed by the Board of Supervisors.