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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 measure and San Francisco parcel tax aim to prevent BART, Muni and Caltrain service cuts.

Yesterday: BART says new tax does not close structural deficit

Overview

Updated 1 hour ago

BART had prepared to close up to 15 stations and end service at 9 p.m. Muni had warned of cutting 20 routes and laying off 2,100 workers. On Nov. 3, Bay Area voters approved two taxes meant to stop those cuts.

The five-county Regional Measure RTM adds a 0.5% sales tax in four counties and 1% in San Francisco for 14 years, raising close to $1 billion annually. San Francisco's Proposition H adds a parcel tax expected to raise $177 million a year for Muni over 15 years. The money preserves service, but BART says it still faces a $350 million to $400 million annual shortfall starting in fiscal 2027.

Why it matters

The taxes avert planned BART station closures and Muni route cuts, but agencies still face structural deficits that the new revenue does not close.

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Key Indicators

$1B
Annual regional transit revenue
Expected from Regional Measure RTM across five counties.
$177M
Annual Muni parcel tax revenue
SFist estimate for Proposition H over 15 years.
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.
61.6%
RTM support
Preliminary vote share across five counties.
72.5%
Prop H support
Approximate support in San Francisco.

Voices

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People Involved

Daniel Lurie
Daniel Lurie
Mayor of San Francisco
Backed both transit funding measures; celebrated their passage.
BP
Bob Powers
BART General Manager
Credited fare gates and on-time performance with building public support.
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.

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 estimated $310M annually beginning FY28; still faces structural deficit.

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.

Timeline

March 2020 November 2026

3 events Latest: Yesterday

  1. BART says new tax does not close structural deficit

    Latest Statement

    BART estimates $310M annual RTM revenue but still faces $350M-$400M shortfall.

  2. Voters approve Prop H and Regional Measure RTM

    Election

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

  3. 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 and taxpayer associations

Opponents argued the measure lacks independent oversight and enforceable financial reforms. A legal challenge could seek to block or delay collection of the sales tax before revenue reaches transit agencies.

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 annual structural shortfall. Closing it would require cost reductions, efficiency changes or additional revenue beyond the new sales tax.

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

(3)
SFist CBS San Francisco Transform