In late May 2026, proponents of two San Francisco tax measures – one local parcel tax and one multi-county sales tax increase – announced they had gathered sufficient signatures to qualify for the Nov. 3, 2026, ballot. Both measures aim to address ongoing funding shortfalls for public transit systems, including San Francisco Municipal Transportation Agency (SFMTA) operations and regional transit providers such as BART and Caltrain.
Proposed San Francisco Parcel Tax to Fund Muni Operations
Supporters of the “Stronger Muni for All” initiative submitted approximately 18,500 signatures, exceeding the 10,600 required to qualify a local initiative for the ballot. If certified, the measure would impose an annual parcel tax on residential and commercial properties in San Francisco to fund Muni operations.
The parcel tax is projected to generate approximately $160 million annually and is structured as a tiered, “split-roll” tax based on property type and size. Key elements include:
- Single-family residential properties: Base tax of $129 for properties up to 3,000 square feet, with additional charges for larger properties.
- Multifamily residential properties: Base tax of $249 for the first 5,000 square feet, with incremental increases for larger parcels, subject to an overall cap.
- Non-residential properties: Base tax of $799 for the first 5,000 square feet, with higher marginal rates and larger caps (up to $400,000) for large commercial properties.
For rent-controlled properties, owners may pass through up to 50% of the parcel tax to tenants, capped at $65 per unit annually.
The proposed parcel tax is designed to address a projected structural deficit facing the SFMTA and to avoid potential service reductions.
Regional Sales Tax Increase for Transit Funding
Proponents of a regional transit funding measure announced that they collected sufficient signatures to qualify a five-county sales tax initiative for the November ballot. The proposed measure would apply across San Francisco, Alameda, Contra Costa, San Mateo, and Santa Clara counties.
If approved by voters, the measure would impose:
- A 1% sales tax increase in San Francisco, and
- A 0.5% sales tax increase in Alameda, Contra Costa, San Mateo, and Santa Clara counties.
Revenue from the regional sales tax would be allocated to transit operators across the region, including Muni, BART, Caltrain, and AC Transit, which are facing significant operating deficits.
The regional measure is authorized by prior state legislation and is designed to provide a long-term funding source for transit operations and capital improvements.
Potential Impact
If both measures qualify and are approved by voters, San Francisco taxpayers could face increased costs through both property-related charges and consumption-based taxes.
For commercial property owners, the parcel tax structure might result in higher annual tax liabilities due to the size-based rate structure and higher caps applicable to non-residential parcels. While the parcel tax would be assessed on property owners, partial cost recovery might be available in certain circumstances (for example, for rent-controlled residential units), potentially shifting some of the economic burden to tenants.
Taxpayers and stakeholders should monitor certification of the initiatives and the final ballot language, including any implementing ordinances or administrative guidance that may affect the calculation, allocation, and enforcement of these taxes.
