Los Angeles Faces Sales Tax Increase Proposal Amid Ongoing Fire Crisis
In the midst of the still-burning inferno at the Boyle Cold Storage facility in Los Angeles, with the smell of smoke lingering over dozens of surrounding cities, residents face a new worry: the city council has unanimously passed a resolution to submit a proposal to increase the sales tax in Los Angeles by 0.5% to a public vote in November, aimed at providing additional funding for the fire department.
On Tuesday, June 23, all 15 council members of the Los Angeles City Council, except for one absent member, voted in favor of the proposal, including 13 Democratic members and one independent member, among them District 4 council member Nithya Raman, who is advancing to the mayoral runoff in November. If the ballot measure is approved, Los Angeles would become the largest city in the United States with the highest sales tax rate.
The current sales tax rate in Los Angeles is 9.75%. If the proposed increase is approved, the rate would rise to 10.25%, generating an estimated additional $375 million in revenue for the city in the first year. Supporters argue that compared to neighboring cities like Culver City and Santa Monica, with a sales tax of 10.75%, the proposed rate for Los Angeles is relatively lower.
However, the 10.25% tax rate does not yet include the recent 0.5% sales tax increase approved for Los Angeles County, set to take effect on October 1. On June 2, the county passed Measure ER, which will raise the sales tax countywide by 0.5%, aiming to provide funding for public health infrastructure in Los Angeles County, projected to increase annual revenue by $1 billion.
The 0.5% sales tax increase proposal for Los Angeles City was initiated by the Los Angeles Firefighters Union, with organizers submitting 225,000 signatures to election officials to ensure qualification. If the ballot measure passes, residents of Los Angeles will effectively face a double tax hike, with the sales tax rate rising to 10.75%.
The budget allocation for the Los Angeles Fire Department (LAFD) in the 2025-26 fiscal year is $837.2 million, but Mayor Karen Bass and the city council made cuts to the fire department’s budget last year, ranking second in cuts among all city departments at $17.6 million.
Following the Eaton and Palisades fires in January 2025, FOX11 reported that LAFD firefighters expressed difficulties in executing fire plans, preparations, and pre-deployment during sustained high winds due to budget cuts. Some firefighters were forced to remain at the rear due to insufficient fire engine numbers.
After the Boyle Cold Storage fire broke out, LAFD mentioned receiving assistance from other fire departments. Los Angeles currently has 3,400 firefighters, a scale comparable to the 1960s, but the response volume this time is five times that of the past. In reality, LAFD’s firefighting capabilities fall far short of meeting the needs of nearly 4 million residents citywide.
If the sales tax in Los Angeles were to increase to 10.75%, it would surpass the current highest-tax-rate city, Seattle (10.35%), ranking as the top highest among major U.S. cities. New York City, the largest city in the U.S., has a combined sales tax rate with state tax and metropolitan transit fees totaling only 8.875%.
According to analysis from organizations like the Sales Tax Institute, high sales tax rates pose potential issues including raising prices and living costs, reducing city’s business competitiveness, prompting resident exoduses, and increasing commercial building vacancy rates.
The Howard Jarvis Taxpayers Association (HJTA), opposing the tax hike, suggests that voters should question what could be more essential in the city budget than providing adequate funding for the fire department. They argue against the city council and mayor reducing fire department funding, and essentially leaving firefighters to fight for tax hikes themselves.
Comments on social media platforms show strong opposition to the tax increase proposal. Some express frustration over inflation and high prices, criticizing the proposed 10.25% sales tax hike as excessive. Others acknowledge the importance of sufficient funding for the fire department but highlight mismanagement of funds by the mayor and city council, diverting money to unnecessary expenses.
Comments in the Los Angeles Times reader feedback section echo the vigorous dissent, with individuals stating, “No! When is enough enough? We’ve already paid too much in taxes.”