Voters approved at least 320 of the 533 tax and bond measures on the November 5 ballot, representing $38.4 billion in additional bond debt (not including interest) and $2 billion in annual direct tax increases on businesses and residents.
CalTax’s analysis of preliminary election results indicates that voters rejected 103 tax and bond measures, while the remaining 110 measures remain within 3.5 percentage points of their threshold for passage and are too close to call with votes still being counted.
In addition to the 533 measures that would increase taxes, there were five local tax reduction measures on the ballot. Preliminary results show that all five are on track to fail. (CalTax: Some counties failed to provide complete information prior to the election, causing CalTax to inadvertently underreport the total number of measures in our previous updates.)
Voters in Los Angeles County and San Diego County contended with the most tax and bond measures, with residents cumulatively deciding the fate of 65 and 34 measures, respectively.
Local government and school officials placed considerably more tax and bond measures on the ballot than in previous general elections. Voters decided 304 tax and bond measures in the 2022 general election, 260 in 2020, and 398 in 2018.
The preliminary results show that many major business tax increases are likely to pass.
Significant majority-vote local taxes include:
- Los Angeles County Square Footage Tax. Measure E in Los Angeles County, imposing a $150 million annual square-footage-based parcel tax increase in perpetuity to support the Los Angeles County Fire Department, has 53.44 percent of the vote. Beginning in the 2025-26 tax year, owners of real property in the district would pay an annual parcel tax of 6 cents per square foot of building improvements, with exemptions for specified parcels. The tax rate would increase every year for inflation. The CalTax-opposed measure severely restricts appeals filed by taxpayers. Measure E specifies that the chief of the Fire Department would be responsible for administering tax appeals, and appeals would be limited to the topics of mathematical errors and discrepancies in the square footage of improvements.
- Los Angeles County Sales Tax Increase. Measure A in Los Angeles County, replacing a 0.25 percent transactions and use tax that earmarks revenue for homeless services with a 0.5 percent tax that would remain in effect indefinitely, has 55.84 percent of the vote. If it hangs on to pass, Measure A will bring the top combined sales tax rate in parts of the county to 10.75 percent. Although Measure A earmarks the revenue for a special purpose, city officials said it needs just a majority vote for approval, rather than the two-thirds vote for special taxes, based on their interpretation of the Upland decision.
- San Francisco Business Tax Changes. San Francisco’s Proposition M, passing handily with 69.15 percent of the vote, will significantly modify the locality’s tax structure, including changing the classification of a taxpayer’s business activities, increasing the small business exemption, reducing the “Overpaid Executive Gross Receipts Tax” rates, modifying business registration fees, and making other changes.
- San Diego Sales Tax Hikes. Two major sales tax increases are trailing in San Diego County. Measure G, which would increase the existing transactions and use tax 0.5 percent in San Diego County, costing taxpayers $350 million annually, has 48.33 percent of the vote. In the city of San Diego, Measure E, which would increase the city’s transactions and use tax 1 percent, costing taxpayers $400 million annually, has 49.28 percent of the vote. If both measures are approved, the combined sales tax rate in the city of San Diego will reach 9.25 percent.
CalTax’s local tax election table will be updated periodically as results become available from county election officials.