Los Angeles Voters May See Six Ballot Initiatives in 2025
Los Angeles voters could decide the fate of six proposed initiatives next year, ranging from wage increases to tax reforms, potentially reshaping the city’s economic landscape.
Labor unions have submitted two proposals aimed at penalizing companies with high CEO pay, alongside two measures requiring voter approval for specific contracts and major development projects. A key proposal from the unions also seeks a citywide minimum wage increase to $30 per hour by mid-2028, mirroring a recent City Council decision for hotel and airport concession workers. Business groups have countered with a single initiative to repeal the city’s gross receipts tax.
The gross receipts tax, levied on the total revenue of businesses regardless of profitability, currently ranges from $1.01 to $4.25 per $1,000 of revenue depending on the business type – with rates differing for child care providers, hotels, and parking lots, among others. According to a summary by the city attorney, repealing the tax, dubbed “The Los Angeles Cost of Living Relief Initiative” by proponents, would reduce city revenue by an estimated $742 million. California voters have a history of utilizing ballot initiatives to impact local taxes; learn more about the process at the Ballotpedia guide to California initiatives.
Signature requirements for qualifying these initiatives vary significantly due to Proposition 218, a 1996 taxpayer protection measure. Union-backed initiatives require approximately 140,000 signatures, while the business group’s tax repeal needs only 46,024. This difference is rooted in the state constitution, which empowers voters to reduce or repeal local taxes with a lower signature threshold. The city clerk will verify the submitted signatures in the coming weeks; for more information on the city’s signature verification process, visit the Los Angeles City Clerk’s website.
City officials stated today that they will closely monitor the signature gathering process and prepare for potential impacts to the city budget should the initiatives qualify for the ballot.
