Sales tax increase to fund homeless services qualifies for November ballot

A proposed ballot measure that would repeal Los Angeles County’s quarter-cent sales tax for homelessness-prevention measures and replace it with an indefinite half-cent sales tax to be used for the same purpose has qualified for the November ballot.

The Homelessness Solutions and Prevention Now measure gained enough valid signatures to be put before voters, the county Registrar-Recorder/CountyClerk’s Office said.

Supporters of the measure said last month they submitted more than 410,000 petition signatures, well above the required 238,922.

With signatures verified, the issue will now move to the Board of Supervisors, which will have the choice of placing the initiative on the November ballot or simply enacting the measure as written without a public vote.

The proposed ballot measure would repeal Measure H, a quarter-cent sales tax approved by county voters in 2017, and replace it with a half-cent sales tax to create a dedicated stream of revenue to address homelessness.

Measure H had a 10-year lifespan, meaning it is set to expire in 2027. The new measure has no sunset date.

The new proposed measure, if approved by voters, would have significant implications in Long Beach. Not only would it benefit from new revenue because it operates its own homeless programs, but it would also reap millions more revenue from its current Measure A sales tax.

Because the state has a 10.25% sales tax ceiling, Long Beach can currently only charge .5% sales tax through Measure A, which was intended for public safety and infrastructure. However, special state legislation passed in 2023 would exempt the new LA county tax measure from that ceiling and allow the sales tax to grow as high as 10.75%.

If that measure passes — more specifically, if Measure H is repealed — Long Beach would be able to charge 1% for Measure A, bringing in another $24 million in annual revenue.

Backers of the new tax measure say it would be a game changer for the county and its approach to addressing the homelessness crisis. Proponents have said the measure would produce $1.2 billion annually.

The coalition of supporters includes more than 80 organizations such as the L.A. County Federation of Labor, California Community Foundation, United Way of Greater Los Angeles, Los Angeles/Orange Counties Building and Construction Trades Council, SEIU 721, among others.

They aim to focus more funding generated by the half-cent sales tax to build more affordable housing, increase access to mental health and substance abuse treatment, and bolster accountability measures — including a legal requirement to deliver results.

The proposed ballot measure notes that 60% of the revenue would cover costs for homelessness services and 15% of that would be distributed to cities based on the annual point-in-time count of homeless people. Another 35.75% would support the L.A. County Affordable Housing Solutions Agency, which was created last year by the state Legislature to oversee homeless solutions.

“We need to fundamentally change how we approach our homelessness and housing crisis, and this measure does that by focusing on mental health care, housing affordability and legal requirements that we see results,” Miguel Santana, CEO of the California Community Foundation and a former Los Angeles city administrative officer, said in a statement.

Melissa Evans contributed to this report.