LA County supervisors must not rush another tax to the ballot

On Tuesday, the Los Angeles County Board of Supervisors will begin considering whether to place a new half-cent sales tax on the June 2026 ballot, less than two years after voters last approved a countywide sales tax hike. The supervisors will make their final decision on March 6, which is the deadline for approving June ballot measures.

But before the supervisors rush to meet that deadline, they should look at the calendar. A far larger statewide revenue measure is already heading toward the November 2026 ballot—one that would fund the exact same health services targeted by the County tax.

SEIU’s “California Billionaire Tax Act,” currently in the signature-gathering phase, proposes a one-time, 5% levy on residents with a net worth exceeding $1 billion. While we can debate the merits of soaking the ultra-wealthy with a retroactive tax later this year, County officials should at least wait to see the fate of that measure.

SEIU estimates that the state measure would raise $90 billion for healthcare over five years, offsetting the impact of the One Big Beautiful Bill Act (HR 1) enacted by Congressional Republicans last year. If state voters foist the healthcare bill onto the wealthiest Californians, why should less affluent Los Angeles County residents be required to pay more for clothes, school supplies, and motor vehicles, especially when the sales tax burden is already so high?

If the new sales tax reaches the ballot and passes, total sales taxes throughout the County will exceed 10% with Lancaster and Palmdale shoppers facing a staggering 11.75% overall rate.Retail businesses in Palmdale may face pressure sincecompetitors in adjacent areas of Kern County are only required to charge 8.25%.

Voters should also be skeptical about claims that HR1 is gutting the healthcare system, an assertion used successfully in Santa Clara County in November to win a 0.625% sales tax hike and that is also being employed in Contra Costa County which also plans a “healthcare” sales tax for the June ballot.

HR1 does not impact benefits for most Medicaid beneficiaries (Medi-Cal is California’s version of the national Medicaid program). It does, however, reduce federal Medicaid funding for undocumented immigrants. The state has reacted by closing Medi-Cal to new undocumented beneficiaries as of January 1 but will still shoulder the costs for those already in the system.

Although Medi-Cal is sometimes derided as “poor people’s healthcare” it covers hospital and physician care without copayments or deductibles. If Los Angeles County’s goal is to offset federal and state cuts with a sales tax, it will be taxing US citizens and green card holders who usually face copayments and deductibles to give individuals illegally in LA County totally free healthcare, a serious inequity.

Tax proponents contend that if undocumented immigrants lose Medi-Cal coverage they will simply go to emergency rooms which are required under federal law to treat them regardless of ability to pay. But this is not strictly true. The ER is only required to screen patients for emergency conditions and stabilize them if necessary. If the hospital determines that the individual does not have a real emergency, it can demand payment or tell the uninsured patient to leave.

HR1 also imposes a “community engagement” requirement on childless adult Medi-Cal beneficiaries. Often mischaracterized as a “work requirement,” this reform asks able bodied beneficiaries to demonstrate that they are working, volunteering, getting education, or getting training for at least 80 hours per month—a low hurdle to maintain coverage.

Finally, it is worth noting the LA’s measure is structured as a “general tax” rather than a “special tax” legally earmarked forhealthcare. Because it is a general tax, the measure would require only a simple majority to pass, but supervisors would be able to spend the proceeds on anything they want.

If all this does not sound so kosher to you, feel free to share your opinion with your county supervisor.

Marc Joffe is a Visiting Fellow at California Policy Center.