Los Angeles County introduced a 10.25 percent sales tax on Thursday, four months after voters approved Measure ER.
The Essential Services Restoration Act (Measure ER) overwhelmingly passed in L.A. County earlier this year, raising the sales tax by a half-cent to support health care and other essential services – from 9.75 percent to 10.25 percent.
“For every $100 in taxable purchases, Measure ER adds 50 cents in tax, bringing the total to $110.25,” noted NBC News. “The increase is temporary. Measure ER allows the tax to remain in effect for five years until Oct. 1, 2031 as it is projected to generate about $1 billion annually.”
Supporters of the measure say that it will support roughly 700,000 L.A. County residents dealing with the loss of health insurance as federal funding for Medi-Cal is reduced:
Proponents say Measure ER will provide health care support for those who are losing Medi-Cal so they don’t show up to the local emergency rooms sicker with more serious illnesses.
The federal funding cut will also impact public hospitals and clinics, but if Measure ER passed, it would make up for the lost funds and save some of the public health care facilities and programs.
Critics of the measure, however, charge that it imposes an “unreasonable and unfairly harsh” sales tax in a county with an already high tax. L.A. County Supervisor Kathryn Barger also said that residents are “stretched thin” with one of the highest metropolitan sales taxes in the nation.
“This proposed half-cent increase would push us even higher, making our county less affordable for families and less appealing for consumers to shop and businesses to operate,” Barger said.
“Moving forward, my responsibility is to ensure the revenues generated are managed with accountability and measurable results,” she also said. “Taxpayers deserve to know how these funds are being spent, whether promised outcomes are being achieved. I will be a strong advocate for rigorous oversight and fiscal responsibility every step of the way.”
The Libertarian Party of L.A. County also filed a lawsuit against the tax.
According to LA Mag, spending from the “tax revenue collected by the measure will be tracked through annual audits by the Auditor-Controller, public reporting and a nine-member Citizens’ Oversight Committee that includes the Director of the Department of Public Health and other members appointed by the Board of Supervisors.”
