The 2026 beach cities sales tax question — what Hermosa may put on your ballot, and what it costs you

June 2026 · Last updated: June 11, 2026

Hermosa Beach is weighing a third attempt at a 1% sales tax, which would raise roughly $4 million a year against a $3.2 million structural deficit — and a new poll shows 55% support even after respondents heard the opposition's case, per Easy Reader's coverage of the May 26 council meeting. Council wants the decision — sales tax, hotel tax, or both — made before August, the deadline for the November 2026 ballot. Manhattan Beach, for the record, is not pursuing a sales tax.

Voters said no in 2022 and 2024. Here is what's proposed, what it would cost your household, and why both sides think this time is different — or isn't.

What exactly would be on the ballot?

A 1% transactions and use tax, on top of Hermosa's current 9.5% sales tax rate, with all proceeds going to the city's general fund. As a general tax it needs a simple majority — over 50% — to pass, plus four council votes just to reach the ballot, per Easy Reader's explainer when the 2024 version was proposed. That explainer also lays out two facts that shape the debate: state law caps local sales tax at 10.25%, so the capacity is "use it or lose it" — another county agency could claim it — and of the current 9.5 cents on the dollar, Hermosa keeps just one cent.

What would it cost a household?

One additional penny per dollar of taxable purchases made in Hermosa — $1 on a $100 restaurant tab, $10 on a $1,000 purchase. Proponents of the 2024 measure argued roughly half the money would come from the city's 5.2 million annual visitors rather than residents, per Easy Reader; opponents counter that residents and local businesses absorb the rest, every day.

Why did the last two attempts fail?

In November 2022, a 3/4% version lost 45% to 55%. In November 2024, Measure HB — also 3/4% — lost 43% to 57% (3,199 votes to 4,269), per Easy Reader. The 2024 opposition, signed by five former councilmembers, argued the city has a spending problem, not a revenue problem — city revenues had grown from $45 million to $54 million in six years — while a second argument warned the tax would hurt local businesses, adding "there is no guarantee that the $3 million won't go to higher salaries and bonuses," per Easy Reader.

What does the new poll actually say?

True North Research surveyed 519 likely November voters in April, per Easy Reader. Initial support: 56%. After hearing how funds could be spent — streets, public safety, parks, infrastructure — 62%. After hearing opposition arguments: 55%, still above the majority needed. The pollster's caveats are worth quoting: the survey "isn't a crystal ball," and "what happens on election day isn't what your poll says today." What's changed since 2024 is mostly that the deficit arrived. "We've been warning about a structural deficit every time we attempted it," Mayor Mike Detoy said, "but now we're here."

Why might council pair it with — or swap it for — a hotel tax?

Councilmember Ray Jackson argued for also studying a transient occupancy tax increase, with the World Cup and 2028 Olympics bringing visitor money. The pollster warned that two tax measures on one ballot tend to sink both, which is why Detoy and Councilmember Michael Keegan favored the sales tax alone. Hotel Hermosa's general manager flagged the competitive risk: at 14%, Hermosa's hotel tax is already tied for the highest in the immediate South Bay. Councilmember Dean Francois raised the trust question: "We've tried sales tax twice. There's no indication that people trust us anymore now than in the past." All quotes per Easy Reader.

What about Manhattan Beach?

No sales tax measure is on the table. MB opened its own budget season May 5 by directing staff to find an additional $1 million in cost reductions and to analyze parking-rate increases and the feasibility of a bond measure, per the council minutes.

What happens next — and how do you weigh in?

Staff returns with sales tax and TOT analyses for a council decision before August. Hermosa's budget adoption hearings run June 9 and June 23. Agendas post at least 72 hours ahead at the city's agenda portal, with written eComments accepted until 3 hours before each meeting.

We track this story, and everything else that hits your money in MB and Hermosa, in the twice-weekly Pier to Pier newsletter.

General information, not advice.

Sources

  • Easy Reader, "Survey on 1% sales tax measure shows community support," May 27, 2026 — https://easyreadernews.com/survey-on-1-sales-tax-measure-shows-community-support/
  • Easy Reader, "Hermosa Beach Voters reject sales tax increase Measure HB," November 2024 — https://easyreadernews.com/hermosa-beach-voters-reject-sales-tax-increase-measure-hb/
  • Easy Reader, "Hermosa Beach sales tax measure divides current, former councilmembers," August 14, 2024 — https://easyreadernews.com/hermosa-beach-sales-tax-measure-divides-current-former-councilmembers/
  • Easy Reader, "Civic center, sales tax, e-bikes, permit fees, public comments all in a night's work for Hermosa Beach Council," February 13, 2024 — https://easyreadernews.com/civic-center-sales-tax-e-bikes-permit-fees-public-comments-all-in-a-nights-work-for-hermosa-beach-council/
  • City of Manhattan Beach, City Council minutes, May 5, 2026 — https://manhattanbeach.granicus.com/MinutesViewer.php?view_id=4&clip_id=5226&doc_id=d586f192-5467-11f1-9b4d-005056a89546
  • City of Hermosa Beach, agenda portal — https://pub-hermosabeach.escribemeetings.com/

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