Los Angeles voters keep saying homelessness is their biggest concern. But do they believe that this persistent problem can be solved by raising taxes on goods sold in LA?

County voters supported higher sales taxes to combat homelessness years ago, and this November a new measure will ask them to raise those taxes to fund new approaches to combat the crisis.

Official title on the ballot: Measure A – Homeless Services and Affordable Housing Regulation

Understanding Measure A

For many Los Angeles residents, no problem is as overwhelming, sad and frustrating as homelessness. It’s no wonder this issue is at the top of voters’ agendas: one in five Homeless Americans live in Los Angeles County.

More than 75,000 people in Los Angeles County are homeless, according to the latest figures. These figures reached a plateau this yearBut in recent years the region has seen enormous annual growth, sometimes exceeding 10%.

The story behind it

Attempts to combat these spikes are not new. In fact, in 2017, more than 69% of Los Angeles County voters approved a quarter-cent sales tax increase to combat homelessness. Measure Hand the company has raised hundreds of millions of dollars each year to provide services to people trying to escape homelessness.

Measure H expires in 2027. That’s where this new measure comes in. Measure A aims to replace the existing 1/4 cent sales tax with a new 1/2 cent tax. This increased revenue would continue homeless services indefinitely and funnel money into new efforts to create affordable housing, provide rent relief for tenants in need, and Free lawyers for tenants facing eviction.

How it would work

If approved, Measure A would raise an estimated $1.1 billion per year for housing and homeless assistance by imposing a half-cent tax on every dollar of goods sold in Los Angeles County. Certain items, such as food, are exempt from sales tax.

Measure A only needs the support of a simple majority of voters to pass, different from the two-thirds majority that Measure H needed to take effect in 2017.

Since that earlier vote, California Supreme Court rulings have clarified that citizen initiatives (such as Measure A) require only majority support to pass, whereas tax increases proposed by local governments require two-thirds of the people’s support.

What supporters say

Service providers for the homeless, tenant representatives and trade unions say measure A will create more affordable housing, prevent homelessness among low-income renters, provide more mental health care and addiction treatment, and require funding recipients to commit to achieving certain outcomes that are verified through audits.

They argue that expiring Measure H in 2027 without new revenue streams would cause LA’s homeless population to skyrocket by cutting people off from programs currently funded by the local sales tax.

What the opponents say

Taxpayer groups say Los Angeles voters have not gotten what they paid for given the high sales tax they have paid since Measure H was passed in 2017. The county’s homeless population has increased 37% since then.

Opponent argue Doubling the sales tax would hurt Los Angeles residents who are already struggling with inflation and would not guarantee that homelessness will decrease.

Possible financial impact

According to the LA County Registrar-Recorder/County Clerk’s Office, the sales tax increase introduced by Measure A would increase “approximately $1,076,076,350 annually until voters decide to repeal it.”

Follow the money

Stay tuned: The closer the election gets, the more campaign finance data we will have.

Further reading

• Los Angeles residents are angry about homelessness. Are they tired of burdening themselves again? (LAist)
• Everything you need to know about Measure H (LAist)

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