If the measure had passed, it would have asked voters to weigh in on the issue in November.
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Councilman Jose Moreno proposed the measure and said it could have raised up to $82 million per year for city services and projects.
Moreno had previously said the money raised from the tax would have gone toward restoring seven-day-a-week library services, hiring more police and firefighters, or building and staffing a dedicated senior center to serve residents.
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