Los Angeles County is asking its residents to pay more at the register.
Los Angeles County voters will decide whether they want to increase the sales tax for five years to raise $1 billion annually to support public health care and other essential services. Sovos LATAM
The vote is June 2. And right now, it's too close to call.
A recent poll shows 47% of likely voters opposing Measure ER and 45% supporting it — with the outcome genuinely uncertain heading into election day. Deloitte
Measure ER would raise LA County's sales tax by half a percent — from 9.75% to 10.25% — for five years, to replenish hospital and clinic budgets slashed by federal cuts to Medi-Cal. Texas Society of CPAs
The Essential Services Restoration Act proposes to add a temporary half cent per dollar — about 5 cents for every $10 spent in LA County — for five years.
If approved by voters, it's estimated to generate about $1 billion annually to support healthcare, with an estimated $100 million per year directed specifically to public health efforts. Resalecertificate
This is not a permanent tax. It has a five-year sunset. But it would push LA County's combined sales tax rate past 10% — a threshold that matters both symbolically and practically for consumers and businesses.
Here's the context that makes Measure ER particularly charged.
LA County residents have already seen their sales tax creep up significantly in recent years. Starting April 1, 2026, the countywide sales tax increased by 0.25% — from 9.25% to 9.5% — following the passage of Measure A in the November 2024 election, a permanent tax increase to fund expanded homelessness prevention programs.
That increase is less than six weeks old. Now voters are being asked to approve another 0.5% on top of it.
In cities like Long Beach, the combined rate would go from 9.75% to 10.25%. In some cities within the county — like Santa Monica, West Hollywood, and Culver City, which carry their own local add-ons — combined rates would go even higher.
Supporters frame Measure ER as an emergency response to federal policy.
The Community Clinic Association of Los Angeles County called it "an urgent and necessary step to stop the damage and to protect access to life-saving care," with support from community health organizations including Venice Family Clinic and MLK Community Healthcare.
The core argument is straightforward: federal cuts to Medi-Cal are gutting the funding that LA County's safety-net hospitals and clinics depend on. Without a local revenue source to fill the gap, clinics close, patients lose coverage, and the public health infrastructure weakens. The sales tax is the fastest available mechanism to raise the money needed.
Accountability would be ensured through independent audits, public reporting, and a citizens' oversight committee.
Opponents aren't arguing against healthcare. They're arguing against the method — and the timing.
The Howard Jarvis Taxpayers Association argued that sales tax in LA County is already too high and that raising it again is "unreasonable and unfairly harsh" for those who can't afford it.
The Pasadena Chamber of Commerce voted to "strongly oppose" the measure, citing concerns about rising costs for consumers and businesses, as well as what it described as insufficient oversight and ineffective use of existing county funds. Avalara
The regressive tax argument runs deep here. A half-cent sales tax costs the same whether you earn $30,000 or $300,000 a year — but it takes a much bigger bite out of lower-income households who spend most of what they earn. The irony is that the people most likely to need the healthcare funded by the tax are also the people most burdened by paying it.
If Measure ER passes, the compliance implications kick in fast.
If a majority of voters approve Measure ER, LA County would begin imposing the additional 0.5% sales tax in October 2026.
That gives businesses roughly four months to update their point-of-sale systems, reprogram their tax calculation software, and notify customers. For multi-location retailers operating across different cities within LA County — where combined rates already vary — this adds another layer of rate complexity to manage.
It also raises a broader question: at what point does a 10%+ sales tax rate start changing consumer behavior? Research consistently shows that high combined tax rates can push consumers toward online purchases from out-of-state sellers, border shopping in lower-tax neighboring counties, or simply spending less. Businesses in already-thin-margin categories like food service, retail, and entertainment will feel that shift first.
LA County is not an isolated case.
Across California, several other cities and counties have sales tax measures on the June 2026 ballot — including Bell, Bell Gardens, Commerce, and Covina, all proposing their own local sales tax increases. Morgan Lewis
The trend reflects a national reality: as federal funding tightens and state budgets face pressure, local governments are increasingly turning to the sales tax as their most accessible revenue lever. It's visible, it's broad-based, and — unlike property taxes or income taxes — it can be implemented relatively quickly.
Whether voters in LA County decide that's the right move on June 2 will be one of the most-watched local tax decisions of 2026.
Running a business in Los Angeles County and not sure how a potential rate change would affect your compliance setup? Book a free consultation with our team at sales.tax. We'll walk through your current obligations and make sure you're ready for whatever the ballot brings.