Commerce officials have signed off on putting a one-quarter-cent local sales-tax hike in front of voters on the June 2, 2026, ballot, pitching it as a way to shield police, parks, and the city’s free bus system if money from the Commerce Casino suddenly takes a hit under new rules. The add-on would nudge the city’s locally imposed transactions-and-use tax from three-quarters of a cent to a full cent, and city staff estimates it would bring in about $4.5 million a year for the general fund if a simple majority of voters says yes.
The City Council voted unanimously to place the "Commerce Essential Services Protection Measure" on the June ballot, according to Los Cerritos Community News. City leaders are framing the proposal as a way to keep control of locally generated revenue at a time when outside agencies and recent state rule changes affecting cardrooms are rattling the city’s financial base.
What the measure would fund
City staff says the quarter-cent transactions-and-use tax would generate roughly $4.5 million a year for the general fund, money that city officials intend to use for emergency response, senior and youth programs, street and sidewalk repairs, park upkeep, library services, and transportation operations. The staff report notes that groceries, prescription medicine, rent, and utilities would not be taxed, and that visitors to destinations such as the Citadel Outlets account for more than half of the sales-tax dollars the city receives, according to a staff analysis from the City of Commerce.
Why now: casino rules and a county push
Officials say the timing is not accidental. New regulations approved by the California Attorney General bar certain blackjack-style games and player-dealer setups, creating immediate uncertainty for the Commerce Casino. "The Commerce Casino is not just a business; it is the engine that funds our law enforcement," Mayor Kevin Lainez said in a news release from the City of Commerce. The release warns that casino-related revenues currently make up roughly 40% of the General Fund and generate more than $30 million each year.
At the same time, Los Angeles County supervisors have voted to place a half-cent countywide sales-tax proposal on the June ballot, a move city staff caution could use up the remaining local sales-tax capacity and make it harder for Commerce to secure that quarter-cent for itself, according to FOX 11 Los Angeles.
How the process works and next steps
On the staff’s recommendation, the council declared a fiscal emergency, which lets the city place the measure on the June 2 ballot instead of waiting for the November consolidated election. Without that declaration, a local tax measure would typically need to follow a later timeline and different council vote thresholds, according to a City of Commerce staff report. That report also lays out a March 6 filing cutoff with the county, a March 13 deadline for the impartial analysis and ballot arguments, and an estimated $50,000 to $150,000 cost to consolidate the special election. If voters approve the measure, the tax would take effect on the first day of the first calendar quarter more than 110 days after certification, which staff says would likely be October 1, 2026.
City officials plan to host community budget workshops in the coming months to walk residents through the proposal and gather feedback, with schedules and materials to be posted on the city’s website and referenced in local coverage. For the latest details, check updates from the City of Commerce and reporting by the Los Cerritos Community News.
