Two LA cities propose sales tax hikes after California's blackjack ban
Two Los Angeles County cities are pushing for a sales tax hike to counter the financial fallout from California's new blackjack ban. Commerce and Bell Gardens will place the measures on the June ballot, arguing the restrictions threaten local jobs and services. Officials warn the ban could slash city revenues by millions, forcing cuts to police, fire departments, and other essential services. The state's ban on blackjack in cardrooms has left cities scrambling to fill budget gaps. Bell Gardens risks losing around 40% of its general funds, while Commerce faces losses between $8 million and $18 million. Both cities propose raising sales tax by 0.25 percentage points to soften the blow.
In Bell Gardens, the tax increase would recover roughly a third of the lost revenue, according to City Manager Michael B. O'Kelly. Mayor Miguel De La Rosa stressed that without action, basic services like policing and fire protection would slow down or shrink. Commerce's measure aims to recoup at least $4.5 million—far short of its projected losses. City Manager Ernie Hernandez declared a fiscal emergency in Commerce, citing the ban's severe impact. Meanwhile, card club operators call the restrictions an existential threat, warning of up to 50% job cuts in an industry that supports 9,000 positions and generates over $2 billion in economic activity. Attempts to discuss the issue with California Attorney General Rob Bonta reportedly went unanswered.
The June ballot will decide whether voters approve the tax increases. If passed, the measures would partially offset losses but still leave cities facing steep budget shortfalls. The ban's long-term effects on local economies and public services remain uncertain.
