Bay Area Voters Approve New Sales and Parcel Taxes to Fund Transit and Muni Operations
Voters in five Bay Area counties—Alameda, Contra Costa, San Francisco, San Mateo, and Santa Clara—have approved the Regional Transit Measure (RTM), introducing new sales taxes to prevent transit service cuts. This measure includes a 1% sales tax in San Francisco and a 0.5% sales tax in the other four counties, set to last 14 years. These sales taxes are scheduled to take effect on April 1, 2027, and will apply to items already subject to California sales tax, such as food, clothes, and furniture. Additionally, San Francisco voters approved Proposition H, a 15-year parcel tax on property owners, which will fund Muni transit operations and administration. This parcel tax will appear on San Francisco property tax bills for the 2027-28 fiscal year, with most single-family residential owners facing a $129 charge in the first year, increasing with inflation. Landlords of rent-controlled units may pass up to 50% of this tax, capped at $65 per unit annually, onto renters.
