How Measure ER will impact almost all shopping trips in LA County

Los Angeles County residents are facing a hefty sales tax increase after Measure ER was approved in a recent election. The new half-cent increase in sales tax is expected to raise $1 billion annually for hospitals, local health departments, and low-income residents in need of insurance. However, critics argue that this move may backfire as residents could opt to shop in neighboring counties with lower sales tax rates.

The current sales tax rate of 9.75% will be raised to 10.25%, making California already the state with the highest sales tax in the nation. When including county and local taxes, some areas in Los Angeles could see sales tax rates close to 12%. This significant increase in sales tax will impact the prices of everyday items such as furniture, electronics, and even big-ticket items like cars and smartphones.

Advocates of Measure ER, including nonprofit St. John’s Community Health and Service Employees International Union, argue that the tax increase is necessary to offset federal funding cuts and provide essential health care services. However, critics like Aidan Chao of the Los Angeles County Taxpayers Association believe that residents will seek out neighboring counties with lower sales tax rates to save money.

The tax hike is set to go into effect on October 1, 2026, and will expire in 2031. While supporters believe that the funds raised will benefit the community, opponents like Kris Cuyvers and Warren Johnson question the effectiveness of continually increasing taxes. They argue that the money needs to be spent wisely and responsibly to truly benefit the residents of Los Angeles County.

Adam Michel, director of tax policy studies at the Cato Institute, views tax hikes as a “disease” affecting liberal cities. While voters may have good intentions in approving tax increases, Michel believes that it often masks underlying issues of bad governance. As the tax increase takes effect, residents may find themselves rethinking their purchasing decisions due to the higher tax rates.

In conclusion, the approval of Measure ER in Los Angeles County has sparked debate among residents about the impact of the sales tax increase. While advocates believe it will provide much-needed funding for essential services, opponents are concerned about the burden it will place on taxpayers. As the tax goes into effect, the true effects on residents’ behavior and spending habits remain to be seen.