LA Voters Decide Key Tax Measures
Los Angeles voters made several important decisions this month on tax measures that will shape the region's fiscal landscape and reinforce why BOMA/GLA continues to monitor tax policy at every level of government.
While some revenue measures were approved, others were rejected, reflecting the difficult balance between funding public services and maintaining a competitive business environment.
What Passed
County Measure ER
Voters approved Measure ER, increasing the Los Angeles County sales tax by 0.5% for five years to help fund healthcare services.
For commercial real estate, the additional sales tax may place greater financial pressure on retailers, restaurants, and other consumer-facing businesses already operating with tight margins. Over time, higher consumer costs can influence retail spending, tenant performance, leasing activity, and investment decisions.
City Measures CB and TC
Los Angeles voters also approved two City measures.
Measure CB expands the City's cannabis business tax to unlicensed operators, which could create a more level playing field for licensed businesses.
Measure TC updates how the City's hotel occupancy tax is collected by requiring online travel companies to remit taxes on the full amount paid by guests.
For commercial real estate, the direct impact is expected to be limited, but hotels and hospitality-related businesses may face additional administrative requirements and increased tax compliance, which could affect operating costs and the broader tourism economy.
What Didn't Pass
Measure TT
Voters rejected Measure TT, which would have increased Los Angeles' hotel occupancy tax.
The outcome avoids additional costs for hotels and visitors as Los Angeles prepares to host several major international events over the next few years. For the hospitality sector and the restaurants, retailers, and commercial properties that benefit from tourism, the decision helps preserve competitiveness during a critical period for the local economy.
How it Impacts You
While each measure addresses a different policy objective, together they highlight an ongoing trend: local governments continue to look toward new revenue sources to address budget challenges.
For commercial real estate, these decisions extend beyond taxes alone. They influence tenant performance, consumer activity, investment decisions, tourism, and the long-term competitiveness of commercial districts throughout Los Angeles County.
BOMA/GLA will continue advocating for policies that support economic growth while keeping members informed about legislation, ballot measures, and local proposals that affect the commercial real estate industry.
Whether you own, manage, or provide services to commercial properties, tax policy directly affects operating costs, tenant health, consumer spending, and investment activity.
Understanding these measures helps businesses prepare for changing market conditions while ensuring the commercial real estate industry's voice remains part of future policy discussions.
Stay Connected
While the June election has concluded, tax policy discussions are far from over. This November, California voters will consider the Taxpayer Protection Act, a statewide ballot measure that could significantly change how future state and local tax increases are approved.
Supporters also argue the measure could invalidate certain local taxes adopted under the current rules, including Measure ULA, if approved by voters and upheld in court. BOMA/GLA will continue monitoring developments and will provide members with opportunities to support the measure and stay informed as the November election approaches.
