The SFMTA is currently facing the largest financial crisis in the agency’s history, and despite significant progress in identifying cost savings internally, more funding is required to help keep Muni and other transit services running. Without adequate funding, the SFMTA will be forced to make significant cuts to Muni services and programs beginning in FY 27-28. The SFMTA’s funding strategy includes three sources of revenue to close the structural deficit, maintain current service, and create a stronger future for Muni. Revenue sources include ongoing work to find efficiencies and cost savings, a regional revenue measure and a local revenue measure.
Local Revenue Measure
A local parcel tax would further reduce the gap not covered by the proposed regional measure. If passed by voters, the measure will generate ~$150M annually to reduce the deficit and ~$10M to make marginal service quality improvements.
The Stronger Muni for All Measure would be an annual tax on parcels of real property in San Francisco beginning on July 1, 2027, and ending on June 30, 2042. The tax would be adjusted annually for inflation. The proposed 2027 tax rates would be:
Parcel Breakdown
The proposed tax is based on the square-footage of the building. Owners of a single family residency pays a flat tax of $129. Larger residential, multi-family and non-residential properties to contribute proportionally more based on their size.
| Parcel Type | Base Cost | Additional Charges | Maximum Cost |
|---|---|---|---|
| Single Family Residential | $129 |
|
No cap |
| Multi-Family Residential | $249 |
|
$50,000 |
| Non-Residential | $799 |
|
$400,000 |
For mixed use parcels (buildings that are part residential and part non-residential), the tax would be $799 for parcels with up to 5,000 square feet of building area. For mixed use parcels with buildings over 5,000 square feet, the tax would be a combination of the residential and non-residential rates.
Accountability and Oversight Provisions
- Dedicated use of funds for Muni service
- Establishment of a citizen's oversight committee
- Requires independent audit
- Ongoing reporting on how revenues are being used
The process
Under Mayor Daniel Lurie's “Heart of the City” executive directive and direction to pursue a parcel tax, the SFMTA convened a series of discussions to explore a parcel tax structure to fund Muni.