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El Segundo council opts to implement half (0.50%) of Measure C sales tax, rejecting full 0.75%
Summary
After a long council debate about voter intent and regional competitiveness, the council voted 3–1 on July 7 to implement 0.50% of the 0.75% Measure C sales tax authorized by voters in 2018, citing competitiveness with neighboring cities and revenue needs while one member argued the full intent of the 2018 measure should be honored.
The El Segundo City Council voted on July 7 to implement 0.50% of the 0.75% sales tax authorized under Measure C (approved by voters in 2018) after debate about voter intent, local business competitiveness and projected revenue.
City staff and the city attorney summarized Measure C’s history: voters authorized a 0.75% transactions-and-use tax in 2018 intended to allow the city to keep revenue locally in the event another taxing agency imposed an additional sales tax. Counsel explained that county actions and state cap changes had altered the policy landscape since 2018. The city attorney noted the paperwork to implement the tax had been filed with the state and that implementation had a processing cost estimated at roughly $175,000.
Council members divided over whether to collect the full 0.75% or a smaller fraction. Councilmember Giroux argued a half-percent increase would make the city’s tax rate competitive with surrounding jurisdictions and estimated the city could gain roughly $6 million annually from a 0.50% implementation. “I believe we should consider going a half a percent,” Giroux said.
Mayor Pimentel argued the 2018 ballot measure was presented to voters as a non‑revenue insulating mechanism and that using it now to raise revenue without a fresh public vote would be disingenuous. “If people want a quarter percent or a half percent, then we should have the courage of our conviction and put that to the voters,” the mayor said.
After a substitute motion to implement a 0.50% portion of Measure C, the council voted 3–1 in favor. The council also adopted related procedural resolutions (impartial analysis, ballot‑argument rules and consolidation with the county election calendar) for other ballot items to be placed on the Nov. 3, 2026 ballot.
What this means: The city will implement a 0.50% local transaction and use tax under the Measure C authorization and staff will proceed with the administrative steps necessary to collect the revenue; council members asked for continued transparency on how the revenue will be allocated in future budget processes.
