In the November election, California voters will decide the fate of at least 470 local tax and bond measures, with that number expected to rise as additional counties report qualified measures.
Of the 470 tax and bond measures in the 52 counties for which complete information is available, 203 are direct tax increases that cumulatively would cost taxpayers $3.1 billion and 262 are bond measures that would authorize local governments and school districts to issue $49.1 billion in debt, to be repaid with interest through higher property taxes. Additionally, there are five measures that would reduce or repeal existing taxes.
Broken down by type of tax, the measures propose 246 school bonds, 86 transactions and use taxes, 66 parcel taxes, 20 hotel taxes (“transient occupancy taxes”), 16 general obligation bonds, 14 business license tax changes, and 17 that ask for other types of tax increases.
Los Angeles County voters will contend with the highest number tax measures, with a cumulative 66 tax and bond measures proposed in the many jurisdictions within the populous county.
Notable measures include:
- Los Angeles County Sales Tax Increase. Measure A would repeal an existing 0.25 percent countywide transactions and use tax and replace it with a 0.5 percent transactions and use tax. The county estimates that the tax increase would cost taxpayers more than $1 billion annually. If approved, Measure A will bring the top combined sales tax rate to 10.75 percent in parts of the county.
Revenue from the tax increase would be used to fund programs to support homeless residents. Although Measure A is a special tax, local officials have opined that because it was placed on the ballot via a local initiative, it requires a simple majority vote for passage, rather than a two-thirds vote. The officials cited the California Supreme Court’s ruling in California Cannabis Coalition v. City of Upland.
- Los Angeles County Square Footage Tax. Measure E would impose a $0.06-per-square-foot tax on building improvements for property located in the county, with the tax rate adjusted annually for inflation. The tax hike would cost taxpayers $152 million annually, according to county estimates, with revenue earmarked to support the Los Angeles County Fire Department. The chief of the Fire Department would be responsible for administering the tax appeal process, and appeals would be limited to mathematical errors in the calculation of the tax or discrepancies between the assessed and actual square footage of improvements. Measure E was placed on the ballot via an initiative, so elections officials ruled that it requires a simple majority vote despite being a special tax.
- Santa Cruz Soda Tax. Santa Cruz’s Measure Z would impose a tax of 2 cents per fluid ounce on any sweetened beverage – defined as a beverage with one or more caloric sweeteners and containing 40 or more calories per 12 fluid ounces. The tax would cost taxpayers $1.3 million annually, according to the city’s estimate.
Local governments had been prohibited from enacting new taxes on grocery items, including beverages, following the enactment of AB 1838 (Assembly Budget Committee) of 2018. However, a nonprofit organization and Santa Cruz City Council Member Martine Watkins sued the state to overturn the prohibition on beverage taxes. In 2023, the Court of Appeals ruled in Cultiva La Salud v. State of California that the state law violated municipalities’ constitutional authority to enact local taxes. The state law “improperly uses the threat of crippling penalties to chill charter cities from exercising their constitutional rights,” the court wrote.
- Berkeley Natural Gas Tax. Measure GG in the city of Berkeley would impose a new tax on natural gas consumption. Measure GG proposes a tax of $2.9647 per therm of natural gas consumed in buildings larger than 15,000 square feet. This would cost taxpayers $26.7 million annually, the city estimates, with revenue earmarked for decarbonization programs. Although Measure GG is a special tax, election officials state that it would require a simple majority vote for passage, citing the Upland decision.
The number of tax and bond measures on the ballot is substantially higher than in the last presidential election, when voters faced 261 measures. The total number of tax and bond measures is expected to increase when Colusa, Mariposa, Modoc, Orange, Riverside, and Tehama counties publish full lists of measures qualified for the ballot.