Los Angeles County voters have approved a sales tax increase that will raise the current rate from 9.75% to 10.25%, aiming to generate an estimated $1 billion annually for local healthcare services and support for low-income residents. The measure, known as Measure ER, passed by more than 25,000 votes in the June 2 primary and was officially certified by the Los Angeles County Registrar’s Office on Friday. The county Board of Supervisors is expected to formally conclude the election results during a meeting scheduled for Tuesday.

The additional half-cent sales tax is intended to fund hospitals, local health departments, and insurance assistance programs, with proponents emphasizing its importance amid reductions in federal support. Measure ER is backed by groups including the nonprofit St. John’s Community Health and the Service Employees International Union, alongside labor and progressive organizations. The tax increase is set to take effect on October 1, 2026, and will remain in place until its expiration in 2031.

While supporters argue the additional revenue is critical for sustaining health services, some critics warn the tax hike could drive consumers to shop outside the county to avoid higher prices. California already imposes the highest sales tax rates in the nation, with local additions pushing certain Los Angeles communities’ rates close to 12%. Aidan Chao of the Los Angeles County Taxpayers Association noted that residents near border areas such as Lancaster and Palmdale might travel to neighboring counties, like Orange County, where taxes are lower by several percentage points, to make significant purchases.

Examples of the added cost include an extra $200 on a $40,000 car, roughly $20 on a $3,000 living room set, and more than $5 on a $1,000 smartphone. Opponents argue that such increases disproportionately affect working families already burdened by high housing and gas prices. “While you may say ‘a few dollars here and there is not much,’ sometimes a few dollars is a lot to those who are living paycheck to paycheck,” Chao said.

Some voters expressed skepticism about the effective use of the generated funds. Although the tax is earmarked for health-related programs, revenues will flow into the county’s general fund, allowing local officials discretion over allocation. Kris Cuyvers, who voted against the measure, said he would consider shopping outside the county to save on taxes. Another dissenting voter, Warren Johnson, described the recurring tax increases as ineffective, saying, “We believed, we were taught to keep increasing taxes, it’s going to help — we see it’s not helping.”

Among supporters, there is an acknowledgment that responsible spending is crucial to maintaining public trust. Chris Maese, who supported Measure ER, emphasized the need for transparency and accountability in the use of the funds.

Tax policy experts have criticized the measure as part of a broader pattern of increasing taxes in liberal cities, cautioning that higher rates may not resolve underlying governance issues. Adam Michel, director of tax policy studies at the Cato Institute, described such hikes as a “disease” that masks poor fiscal management. California Taxpayers Association president David Kline said rising sales tax rates can influence consumer behavior, potentially leading to greater reluctance to make high-cost purchases.

With the new rate coming into effect later this year, residents and businesses in Los Angeles County will face increased costs on everyday transactions, a change that some believe could reshape shopping patterns in the region.