COMMERCE, CA – The City of Commerce is taking a major step to protect its community and the services provided to residents. The City Council voted unanimously to put a ¼-cent sales tax measure on the June 2026 ballot. The measure is titled: Commerce Essential Services Protection Measure. Leaders say this move is necessary to keep tax dollars in Commerce and diversify the City's revenue, as the Commerce Casino, a primary source of City revenue, is affected by regulatory changes.

The Commerce Casino generates over $30 million in City revenues each year. This money pays for law enforcement, youth programming, parks and the free bus system residents use. The State Attorney-General recently changed the rules on what kind of gaming is allowed. These new rules if implemented will hurt the Casino’s business and result in decreased revenues for the City.

"We can’t afford to sit back and hope things stay the same," said Commerce 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. It provides a way to keep our 911 response times fast and our youth and senior services accessible to everyone."

There is a limit to how high sales tax can go. In Los Angeles County, the law says the total sales tax cannot go higher than 10.75%. Right now, the rate in Commerce is 10.50%. This leaves only a tiny space of ¼ cent (0.25%) left before hitting the cap. Los Angeles County is planning to put its own competing tax measure on the ballot in 2026. However, if Commerce voters approve their own local measure, the money—estimated at about $4.5 million a year—will be invested directly back into the Commerce community.

"This is really about local control, financial independence and preserving the incredible programming our residents have benefited from for years," said City Manager Ernie Hernandez. "The reality is simple: increased sales taxes are likely going to happen by one agency or another. The only question is where the money goes. Does the money stay in Commerce to fix streets and libraries? Or does it go somewhere else outside the City to fund other services?"

City leaders noted that given the visitors to major retail centers such as the Citadel Outlets and other shopping experiences in the City of Commerce, the tax is primarily paid by visitors to the City, not residents.

"More than half of the sales tax collected in our City comes from people who don’t live here," Hernandez explained. "This measure enables us to raise money from the millions of visiting shoppers who use our roads, making sure they help mitigate their impacts and provide the city with the resources to address infrastructure and environmental impact needs."

To demonstrate the cost of the quarter cent tax, officials used the "Hamburger Test": On a $20 lunch purchase, this new tax would add 4 cents to the price of the meal. Importantly, this tax does not apply to groceries, medicine, rent or utilities.

If a simple majority of voters (50%+1) approve the measure, the funds will be used for services like:

• Supporting fast 911 emergency response.

• Protecting programs for seniors and youth.

• Fixing streets, sidewalks and potholes.

• Keeping parks safe and clean.

• Funding City Library and Transportation Operations 

"We have high standards here," Mayor Kevin Lainez added. "We have free buses, great parks, and safe neighborhoods. We should not let those standards drop because of decisions made by the State or the County. This measure puts our future back in our own hands, where it belongs.

Commerce will be hosting Community Budget Workshops that will inform on the current financial outlook and give residents an opportunity to share priorities on the upcoming fiscal year. To learn more about these workshops, visit www.commerceca.gov/city-hall/finance/community-budget-workshops.

Residents will be able to vote on the Commerce Essential Services Protection Measure on the June 2026 ballot. You can learn more about the Measure at www.CommerceCA.gov/EssentialServicesProtectionMeasure