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Bay Area voters approve sales taxes to fund transit

Bay Area voters approve sales taxes to fund transit

Rule Changes San Francisco, CA local

Five-county sales tax and a San Francisco parcel tax passed to head off BART, Muni and Caltrain cuts. BART still faces a $50 million gap next year.

2 days ago: RTM passes with 63% as ballot count nears 1.7 million

Overview

Updated 10 hours ago

Bay Area voters approved the five-county Regional Transit Measure by a wider margin than early counts showed, with 63% support across about 1.7 million ballots as of Nov. 9. The 0.5% sales tax in four counties and 1% in San Francisco is expected to raise about $980 million a year for 14 years, starting in 2027.

BART General Manager Bob Powers said the money takes station closures and reduced service off the table, though BART still faces an estimated $50 million budget gap next year and plans to close it through internal savings. In some Bay Area cities, combined sales tax rates will exceed 11%, and the measure could still face legal challenges from anti-tax groups.

Why it matters

The taxes head off planned station closures and route cuts, but the agencies still cannot cover their operating costs.

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Key Indicators

$980M
Annual regional transit revenue
Expected from Regional Measure RTM across five counties, about $980 million a year.
$160M
Annual Muni parcel tax revenue
About $150M a year for Muni's deficit plus $10M for service improvements, from a 15-year parcel tax.
0.5%
Sales tax rate in four counties
Applies in Alameda, Contra Costa, San Mateo and Santa Clara counties.
1%
Sales tax rate in San Francisco
Regional Measure RTM rate in San Francisco.
14 years
RTM duration
Length of the regional sales tax measure.
2027
RTM collection year
Year the regional sales tax is expected to be collected.
63.2%
RTM support
Final count: 1,213,604 yes to 707,411 no.
74.4%
Prop H support
San Francisco result: 244,760 yes to 84,209 no.
$50M
BART budget gap next year
Estimated shortfall BART plans to close through internal savings.

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People Involved

Daniel Lurie
Daniel Lurie
Mayor of San Francisco
Was mayor of San Francisco when voters approved Proposition H and the regional transit measure on Nov. 3.
 Bob Powers
Bob Powers
BART General Manager
Said RTM takes service cuts and station closures off the table; BART still faces a $50 million gap next year.
JC
Jeff Cretan
Spokesperson, Connect Bay Area
Called the transit tax results an 'incredible' victory.
DA
Debora Allen
Former BART Board Director
Opposed RTM; argued SB 63 lacks independent oversight.
SN
Sue Noack
Chair, Metropolitan Transportation Commission; Pleasant Hill councilmember
Said voters gave the region a mandate and that MTC must be a good steward of the funds.

Organizations Involved

San Francisco Municipal Transportation Agency
San Francisco Municipal Transportation Agency
Transportation agency
Runs Muni; will receive Proposition H parcel tax revenue.

The agency that operates Muni buses and trains in San Francisco.
Bay Area Rapid Transit (BART)
Bay Area Rapid Transit (BART)
Transit agency
Will receive about $310M annually; says RTM takes service cuts off the table but still faces a $50M gap next year.

The regional rail system serving San Francisco, Oakland and surrounding counties.
CB
Connect Bay Area
Campaign coalition
Backed Regional Measure RTM; supporters raised more than $7.5 million.

Coalition of transit advocates, business groups, labor unions and elected officials that campaigned for the regional transit measure.
Metropolitan Transportation Commission
Metropolitan Transportation Commission
Regional transportation agency
Reported RTM approved with 63% of about 1.7 million ballots counted as of Nov. 9; will administer the funds.

The Bay Area's regional transportation planning and financing agency.

Timeline

March 2020 November 2026

6 events Latest: 2 days ago
Tap a bar to jump to that date

  1. RTM passes with 63% as ballot count nears 1.7 million

    Latest Election

    The Metropolitan Transportation Commission reported the Regional Transit Measure with 63% support across the five counties. KQED's count showed 63.1% yes to 36.8% no.

  2. BART says RTM takes service cuts off the table

    Statement

    General Manager Bob Powers said the tax preserves current service and prevents station closures, but BART still faces a $50 million budget gap next year.

  3. BART says new tax does not close all financial gaps

    Statement

    BART estimated $310M in annual RTM revenue and said the tax would not eliminate its financial challenges.

  4. MTC says RTM leading with 61.5% as count passes 1.1 million

    Election

    The Metropolitan Transportation Commission reported the Regional Transit Measure above the simple-majority threshold across five counties; San Francisco's Proposition H stood at 72.4%.

  5. Voters approve Prop H and Regional Measure RTM

    Election

    San Francisco parcel tax and five-county sales tax pass, averting planned service cuts.

  6. Pandemic cuts transit ridership and fare revenue

    Context

    Remote work and lost downtown commuters reduce ridership; federal relief temporarily fills budget gaps.

Scenarios

1

Transit agencies use new tax revenue to avoid major service cuts

Likely Resolves by Jul 1, 2027

Discussed by: BART, SFMTA and Connect Bay Area statements

The measures are designed to preserve existing service levels. If revenue begins flowing as expected, BART and Muni would avoid the station closures, route eliminations and evening service cuts they had prepared.

2

Opponents sue and delay RTM tax collection

Possible Resolves by Q2 2027

Discussed by: RTM opponents including Debora Allen, taxpayer associations and The Guardian

Opponents argued the measure lacks independent oversight and enforceable financial reforms. The Guardian reported that anti-tax groups could still challenge the measure, potentially tying up funds in escrow; MTC said it is prepared to defend the vote.

3

BART closes structural deficit with reforms

Unlikely Resolves by Q2 2028

Discussed by: BART statements and financial projections

BART says RTM prevents severe cuts but leaves an estimated $50 million gap next year. The agency plans to close it through internal savings rather than service cuts.

Historical Context

One moment from history that rhymes with this story — and how it unfolded.

2020-2024

COVID-19 transit ridership collapse (2020-2024)

Remote work emptied downtown offices and cut fare revenue for BART, Muni and Caltrain. Federal and state relief helped agencies keep service running during the pandemic.

Then

Aid delayed cuts but did not replace lost fare revenue.

Now

Agencies faced fiscal cliffs as relief expired, prompting the 2026 tax measures.

Why this matters now

The new taxes are meant to replace expiring pandemic aid and prevent the service cuts agencies had planned.

Sources

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SFist CBS San Francisco Transform Metropolitan Transportation Commission The San Francisco Standard Railway Age KALW Westside Construction Group NBC Bay Area Bay Area Reporter Montegre KQED KTVU FOX 2 The Guardian San Francisco County Transportation Authority BART Streetsblog San Francisco Bay Area Metro CBS San Francisco The San Francisco Standard