AGENDA REPORT
Meeting Date: June 9, 2026
Item Number:
To: Honorable Mayor & City Council
From: Laurence S. Wiener, City Attorney
Mandy Jiang, Senior Management Analyst
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
SUSPENDING THE COLLECTION OF A TRANSACTION AND USE
TAX PURSUANT TO MEASURE RP
Attachments: 1. Resolution
RECOMMENDATION
The City Attorney recommends adoption of this resolution suspending the collection of a transaction and use tax pursuant to Measure RP.
INTRODUCTION
At its May 5, 2026, Study Session meeting, the City Council voted to suspend Measure RP (0.75% city sales tax passed in 2020) if Los Angeles County’s Measure ER (0.50% sales tax on June 2, 2026 ballot) stacks on top of Measure RP. A stacked tax scenario would occur if both County Measure ER and AB 1768 (Bryan) pass, while the City’s Measure RP is in effect, which would result in both ER and RP taking effect in Beverly Hills, amounting to a sales tax of 11%. The City’s current sales tax rate is 9.75%.
AB 1768 (Bryan) is a state legislative bill that seeks to allow the County’s Measure ER to exceed the District Tax limit established by the Transactions and Use Tax Law. The City transmitted a formal letter requesting the Governor’s veto of AB 1768 on May 22, 2026.
On June 2, 2026, Governor Newsom signed the bill into law. As of June 3, ballot Measure ER is trending with low support from LA County voters: 46.89% voted Yes and
53.11% voted No. These numbers may change as ballots are counted.
Meeting Date: June 9, 2026
DISCUSSION
Measure RP, passed by Beverly Hills voters in 2020, enacted a 0.75% transaction and use tax for the City of Beverly Hills. At the time, this 0.75% was the difference between the existing Beverly Hills sales and transaction and use tax and the maximum sales and transaction and use tax permitted Los Angeles County.
However, pursuant to Measure RP, the City suspended the collection of that tax until Los Angeles County or any agency of Los Angeles County (collectively, the “County”) placed a measure on the ballot seeking voter authorization for a new or increased transactions and use tax. In that scenario, in order to ensure the City will retain this funding for local use without raising taxes, the City would commence the process of tax collection authorized by Measure RP.
Measure ER has been placed on the June 2026 statewide primary ballot. Measure ER would enact a 0.5% transaction and use tax (“sales tax”) in Los Angeles County.
Therefore, Measure ER would trigger the tax enacted by Measure RP.
However, Measure ER would be enacted pursuant to a special state law (AB 1768), which would allow Measure ER to exceed the statutory limit of 10.25% on sales and transaction and use taxes. As of June 2, 2026, it has been confirmed that Governor Newsom has signed AB 1768 into law. Therefore, if the City imposes the Measure RP tax (0.75%), and the Measure ER tax (0.50%) passes, the result would be a stacked sales tax of 11.00%.
Measure RP provides the City Council options to suspend or reduce the Measure RP tax by resolution, after a public meeting at which public testimony is taken. At the meeting on May 5, 2026, the City Council solicited public testimony and determined that the Measure RP tax should be suspended if the County Measure ER tax passes with AB 1768, since Measure RP would not achieve the previously represented defensive goal of blocking an external jurisdiction’s tax.
FISCAL IMPACT
Based on the City’s estimated sales tax revenue for Fiscal Year 2025-26 of $46.3 million, each 0.25% of a transactions and use tax is estimated to generate an additional $10.2 million. If implemented, Measure RP could result in an estimated $30.6 million annually in additional revenue.
Laurence S. Wiener,
City Attorney
Approved By
ATTACHMENT 1
RESOLUTION NO. 26-R-_______
RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
SUSPENDING THE COLLECTION OF A TRANSACTION AND USE
TAX PURSUANT TO MEASURE RP
Measure RP was on the November 3, 2020 ballot and enacted a transaction and use tax of .75%. The Measure RP tax occupied the remainder of the total 10.25% sales and transaction and use taxes allowed in Los Angeles County at that time. The Measure RP tax would be triggered when Los Angeles County or a county agency was scheduled to have on the ballot a competing transaction and use tax. In that event, the City of Beverly Hills, rather than Los Angeles County or a county agency, would receive the revenue from the additional transaction and use tax to use for local purposes.
Los Angeles County has placed Measure ER on the June 2, 2026 statewide primary ballot, which would enact a .5% transaction and use tax on the citizens of Los Angeles County for five years ending October 1. 2031, including the City of Beverly Hills.
The tax imposed pursuant to proposed Measure ER would trigger the tax imposed by Measure RP.
However, Measure ER would be enacted pursuant to special State legislation AB 1768 (Bryan), which would allow Measure ER to exceed the 10.25% total sales and transaction and use tax imposed in Los Angeles County.
As a consequence, Measure RP cannot replace the tax imposed by Measure ER and instead would be imposed in addition to the tax imposed by Measure ER.
NOW, THEREFORE, the Council of the City of Beverly Hills does hereby resolve as follows:
Docusign Envelope ID: 17BCFC86-0E99-8BAF-802C-DB38F0811AAB Section 1. The Council of the City of Beverly Hills hereby suspends the collection of the tax imposed by Measure RP.
Section 2. The City Clerk shall certify to the adoption of this Resolution and shall cause this Resolution and her certification to be entered in the Book of Resolutions of the Council of this City.
Adopted:
_____________________
CRAIG A. CORMAN
Mayor of the City of Beverly Hills,
California
ATTEST:
_____________________________(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM:
______________________ _______________________
LAURENCE S. WIENER NANCY HUNT-COFFEEY
City Attorney City Manager
Docusign Envelope ID: 17BCFC86-0E99-8BAF-802C-DB38F0811AAB Certificate Of Completion
Envelope Id: 17BCFC86-0E99-8BAF-802C-DB38F0811AAB Status: Sent Subject: Complete with Docusign: Attachment 1- RESOLUTION SUSPENDING MEASURE RP 6-9-26.pdf Source Envelope:
Document Pages: 2 Signatures: 1 Envelope Originator:
Certificate Pages: 2 Initials: 0 Mandy Jiang
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455 N. Rexford Drive
Beverly Hills, CA 90210
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Status: Original
6/2/2026 1:06:40 PM
Holder: Mandy Jiang
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Location: DocuSign
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Laurence Wiener
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Mandy Jiang
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Nancy Hunt-Coffey
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Craig A. Corman
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Huma Ahmed
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