A new proposed parcel tax on this year’s ballot in Los Angeles County was ultimately voted down on Wednesday by the taxpayers. Measure EE sought to raise new funding for the Los Angeles Unified School District. It ultimately was voted down by a total of 54.32% of the electorate —165,294 voters and 139,027 or 45.68% of the total count voted for in favor of the measure. Proponents of the new tax even said that they had an “uphill battle” from the very start.

What was the tax?

The parcel tax would have taxed every square foot of property within the Los Angeles County District, both residential and commercial. would have gone into effect for 12 years with a projected $500,000,000 in new revenue for the district. The parcel tax fee per square foot would ultimately not apply to land parcels and certain garage structures. The property owner ultimately would be responsible for the tax, but some tenants could be on the hook under some triple net lease arrangements (NNN) where the owner would also pass through this tax.

What did it need to pass?

The new proposed parcel tax from Measure EE needed a two-thirds majority of voters for the tax to pass. This was considered a unique ballot as the measure was the only item in many parts of the district. Because of this, there was a lower turnout than expected.

It’s possible the Los Angeles district will try and put the new parcel tax on another ballot when a larger voter turnout is expected. For now, commercial and residential owners can rest assured that no new tax will be effective for the tax year.