A ballot measure was approved for the Nov. 5 election by the West Hollywood City Council. (photo by Jon Viscott)

On Aug. 5, the West Hollywood City Council approved a ballot measure for the November election that could safeguard potential sales taxes for city use. The use of a one-quarter cent tax would only take effect if a further district sales tax is enacted. Essentially, this item would earmark that tax to go to the city and not to the county or state. Beverly Hills voters approved a similar measure in 2020.

“Under state law, there is a maximum amount of sales tax which can be charged by local jurisdictions,” Councilman John Heilman said. “However, the sales tax can be imposed by any taxing agency including the county. If it is imposed by the city, the revenue stays within the city and can be controlled by the city. If the sales tax is imposed by another taxing agency such as the county, it doesn’t stay within West Hollywood and the city has no say in how the money is used … The ballot measure essentially preserves those funds for the West Hollywood community if some other governmental agency tries to take them. And if that happens, the increased sales tax revenue will stay in West Hollywood and the city can use the funds for a variety of purposes such as enhancing public safety, cleaning up streets and addressing other quality of life issues of concern to the community.”

Heilman stressed that there would “be no immediate increase in sales tax paid by consumers.”

“An increase will only go into effect if some other governmental agency within the county tries to increase the sales tax or, if at some point in the future, there is an urgent need for the funds,” Heilman said.

Los Angeles County’s Measure H, a 10-year one-quarter cent sales tax for homelessness prevention, went into effect in 2017 and is set to expire in 2027. The measure has limited the amount of sales tax cities within the county can collect. Another county ballot measure will appear in November that could repeal Measure H altogether. The West Hollywood item comes as an effort, according to a staff report, aims to prevent any district from further infringing on the statutory sales tax cap.

“This proposed ballot measure does not change the existing 10.25% sales tax rate currently collected in West Hollywood,” resident Ted Green said. “Instead, if approved by the voters it puts West Hollywood first in line to collect an additional one-quarter cent of the existing sales tax rate. This would amount to $5 million a year of sales tax dollars collected in West Hollywood that would remain in West Hollywood to fund West Hollywood services according to West Hollywood’s priorities as set by the West Hollywood City Council.”

“This is a preemptive measure if the ballot [measure] that the county’s proposed is going to pass,” resident Jordan Cockerham said. “We as the city of West Hollywood would be able to collect the tax and use it at our discretion.”

In the last fiscal year, the city of West Hollywood touted a $31 million budget surplus.