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More than 30 California communities seek tax hikes amid warnings of deep service cuts

"There's a limit in how much you can do both legally and in terms of the tolerance of voters."

A person writes on a paper while a green ballot box is in the foreground on a desk.

Photo Credit: iStock

With election day fast approaching, warnings of cuts to basic services have accompanied government requests for higher taxes across Southern California. Cities and municipalities staring down budget deficits have asked residents to pay more to plug the gaps. 

Already struggling with high costs across the board, many residents have been pushing back. 

Here's what to know

More than 30 municipalities or districts across Los Angeles and Orange counties have sought voter approval for tax measures on the November ballot, according to LAist. Utility and parcel taxes are among the proposals, alongside levies on businesses, hotel stays, and retail sales. Communities considering the measures range from San Clemente to Culver City.

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Rising costs for governments

As households face rising costs on everything from energy to insurance to essentials, local governments are facing many of the same pressures. Staff pension obligations, infrastructure work, and insurance premiums all have been driving local governments' requests for additional funding, according to LAist. In recent years, those expenses have climbed while revenues have stagnated.

Without additional sources of funding, tax proponents have argued, communities could experience service reductions. Despite the large number of proposals on the ballot, "sales tax measures are actually becoming less common," the outlet stated.

"There's a limit in how much you can do both legally and in terms of the tolerance of voters," author Michael Coleman said.

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Where can I learn more?

Communities outside Southern California have also been facing tight budgets and tough choices about taxes.

• Arizona cities have warned that Proposition 316 would curb grocery taxes while leaving holes in local budgets.

• Maryland has been weighing broader local tax powers as housing groups warned that buyers could be priced out.

• Jersey City passed a 15.2% property tax hike, warning the pain would be felt throughout the community.

• Cambridge proposed a 21% commercial tax hike alongside a 4% increase for homes.

• Avon Lake residents questioned spending as leaders sought taxes for a $48 million road backlog.

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