City of Commerce Votes to Place ¼-Cent Sales Tax Measure on June 2026 Ballot

February 25, 2026

LCCN Staff Report

COMMERCE — The City of Commerce City Council voted unanimously to place a ¼-cent sales tax measure on the June 2026 ballot, asking voters to approve what officials are calling the Commerce Essential Services Protection Measure.

City leaders say the proposal is intended to protect local revenues and diversify the city’s funding sources as the Commerce Casino — a major contributor to the city’s general fund — faces potential regulatory changes.

The Commerce Casino generates more than $30 million annually for the city, funding law enforcement, youth programs, parks and the city’s free bus system. City officials said recent changes announced by the state attorney general regarding gaming regulations could negatively affect casino revenues.

“We can’t afford to sit back and hope things stay the same,” said Mayor Kevin Lainez. “With the state threatening our cardroom revenues and the county looking to take more sales tax, the city must find new ways to fund the services our community relies on. This measure is about maintaining essential services.”

Los Angeles County law caps total sales tax at 10.75%. Commerce’s current rate is 10.50%, leaving 0.25% before reaching the legal maximum. County officials are expected to pursue their own sales tax measure in 2026. If Commerce voters approve the local measure first, city officials estimate it would generate approximately $4.5 million annually for local use.

City Manager Ernie Hernandez framed the proposal as a question of local control.

“Increased sales taxes are likely going to happen by one agency or another,” Hernandez said. “The only question is where the money goes. Does it stay in Commerce to fix streets and libraries, or does it go elsewhere?”

Officials also noted that a significant portion of the city’s sales tax revenue is generated by visitors shopping at major retail centers such as the Citadel Outlets.

To illustrate the impact, city officials said the ¼-cent increase would add approximately 4 cents to a $20 purchase. The tax would not apply to groceries, prescription medicine, rent or utilities.

If approved by a simple majority of voters, revenue from the measure would support emergency response services, senior and youth programs, street and sidewalk repairs, park maintenance, library services and transportation operations.

Commerce officials said they will host community budget workshops in the coming months to discuss the city’s financial outlook and gather public input. Residents can find more information at www.CommerceCA.gov.

Voters will decide the measure in June 2026.