South Bay shoppers will pay more at the register starting Thursday, October 1, when LA County begins collecting a new half-cent sales tax approved by voters in June.
Measure ER, certified by Monday, July 7, according to the Daily Breeze, adds 0.5% to the sales tax on nearly every purchase in the county. That's an extra 50 cents on every $100 spent. Groceries, prescription medications, and medical equipment remain exempt.
What it means for each Beach City
Based on current California Department of Tax and Fee Administration rates plus the 0.5% increase, here's what the combined sales tax rate is expected to be after October 1. The CDTFA will publish its official October 1 rate table closer to that date.
- El Segundo: 9.75% → 10.25%
- Hermosa Beach: 9.75% → 10.25%
- Redondo Beach: 9.75% → 10.25%
- Manhattan Beach: 10.25% → 10.75%
- Hawthorne: 10.50% → 11.00%
Manhattan Beach and Hawthorne already carried higher rates due to prior local measures.
How it passed
Measure ER squeaked through the Tuesday, June 2 election with 50.64% of the vote — 1,012,236 yes votes to 986,735 no votes, a margin of roughly 25,500 ballots, according to Ballotpedia. The measure trailed on election night and didn't cross the 50% threshold until mail ballots were counted days later.
The LA County Board of Supervisors voted 4-1 on Tuesday, February 10 to place the measure on the ballot. Supervisors Holly Mitchell and Hilda Solis introduced the motion. Supervisor Kathryn Barger cast the lone no vote.
Where the money goes
The county's Measure ER FAQ estimates the tax will generate roughly $1 billion per year — about $5 billion over its five-year lifespan — to address what county leaders describe as a gap in hospital, clinic, and public health funding caused by federal cuts. The county estimates it will lose about $2.5 billion over three years due to reductions in Medi-Cal and other health programs, according to CalMatters. County campaign materials project that 700,000 LA County residents will lose health insurance.
Measure ER is technically a general tax, meaning revenue flows into the county's general fund and the Board of Supervisors allocates it annually through the budget process. A citizens' oversight committee, independent audits, and public reporting requirements are built into the measure.
"It's a lifesaver to carry us through the storm we're all in," Supervisor Mitchell told supporters after the measure crossed the 50% mark, according to the Los Angeles Times.
Opponents, including the Howard Jarvis Taxpayers Association, argued the tax is regressive. Susan Shelley, a spokesperson for the group, said she hoped the narrow margin sends a message that residents feel overtaxed, according to CalMatters.
What to expect October 1
Local retailers and restaurants must update their point-of-sale systems to reflect the new rate by Thursday, October 1, which aligns with California's quarterly tax rate update cycle. The tax automatically expires in October 2031 and cannot be extended without another vote.
No officials from Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, or Hawthorne responded to inquiries about local impacts. Residents can check their city's updated rate at the CDTFA website (cdtfa.ca.gov) when the October 1 rate table is published.
