El Segundo moves to implement voter-approved Measure C to protect local sales-tax revenues

The El Segundo City Council voted May 19 to take administrative steps to implement Measure C, the 0.75 percentage-point local sales-tax measure voters approved in 2018, authorizing the city manager to enter agreements with the California Department of Tax and Fee Administration so the city can begin collection if triggered by county or state actions.

City Attorney and finance staff told the council that recent county ballot measures and pending state legislation could reduce the city’s ability to keep local sales-tax revenue unless El Segundo acts promptly. Staff estimated collection of Measure C would yield about $9 million a year if implemented. Councilmembers stressed the approval is contingent on events at the county and state levels—specifically a proposed county Measure ER and a pending state bill (AB 1768) to raise the sales-tax cap— and said they expect to return immediately after election results or state action to confirm whether to continue collection.

Council also adopted a resolution authorizing examination of sales and use tax records and approved related implementation appropriations, including an estimated state implementation fee and contracts for auditing and reporting services. The actions passed by roll-call vote, with council members emphasizing that the city will suspend collection if the county measure fails or state law changes such that collection would be inappropriate.

Council members debated policy tradeoffs at length: several framed the move as protecting El Segundo voters’ 2018 intent to keep tax dollars local, while others warned about imposing a new local tax unless strictly necessary and asked staff to return with suspension options promptly if circumstances change.