Tax Proposals Advance to City Council: What CRE Needs to Know

A sweeping package of proposed tax increases is now before the full Los Angeles City Council after being advanced by the Budget and Finance Committee.

The report outlines multiple options to raise General Fund revenue through new and increased taxes that could appear on the June and November 2026 ballots.

BOMA/GLA’s Advocacy team is actively tracking this item as it moves forward and continues to share the concerns outlined in our opposition letters to Councilmembers through our Action Center.

These proposals carry significant implications for commercial real estate professionals across Los Angeles.

What You Need to Know

City Council is considering recommendations to move forward with several general revenue tax measures, including directing the City Attorney to begin drafting ballot language for the June and November 2026 elections.

Parking Occupancy Tax (POT)

• Current rate: 10%
• Proposed increase: to 15% (a 50% increase)
• Would be on June ballot if passed

Vacancy Tax

• Funding of up to $100,000 may be allocated for a study. A study is often the first formal move toward a ballot proposal.
• While details have not yet been defined, vacancy taxes generally seek to penalize properties deemed “underutilized” or “vacant”

How It Impacts You

For commercial property managers, owners, and service providers, this item reflects a growing push to rely on industry-wide tax increases to address budget challenges—at a time when the commercial real estate market is still recovering.

• Higher parking taxes increase costs for tenants, employees, and visitors, making it harder to support leasing activity and return-to-office efforts.
• Permanent tax increases reduce flexibility for properties navigating vacancy, financing pressure, and rising operating expenses.
• Vacancy tax studies continue to move forward despite concerns that such policies penalize properties struggling due to market conditions beyond an owner’s control.

Layering multiple taxes and fees risks slowing economic recovery and discouraging investment in Los Angeles commercial buildings.

BOMA/GLA has communicated to Council that long-term fiscal stability depends on economic growth and occupancy, not policies that further strain already-challenged commercial properties.

Stay Engaged

Now that this item is before the full City Council, advocacy is critical.

BOMA/GLA will continue to engage Council offices directly, monitor Council action and ballot language development and share our positions and member concerns through our Action Center.

We urge members to stay engaged as these proposals advance.

Decisions made now will shape the 2026 ballot—and the operating environment for commercial real estate in Los Angeles for years to come.