Muni funding plan takes shape with parcel tax scenarios

The Facts

The Lurie administration is reportedly considering two options for parcel taxes on the November 2026 ballot to address Muni's $307 million annual budget deficit, according to an exclusive by Rachel Swan at The Chronicle. Only one measure will be put forward, and both scenarios would keep taxes on small homeowners low while requiring larger property owners to pay more.

Under the first option, residential property owners would pay $150 annually for homes under 3,000 square feet, plus 25 cents per additional square foot with a $250,000 cap. Commercial properties would pay $600 for buildings under 3,000 square feet, plus 67.5 cents per additional square foot with a $400,000 cap.

The second scenario reduces the residential base rate to $99 but increases the per-square-foot premium to 29 cents, while commercial properties would pay the same $600 base with 73 cents per additional square foot.

The Context

Without new revenue, SFMTA faces service cuts on a third of its lines that would effectively double wait times for riders. The deficit could grow to $434 million within five years, making this one of the most critical fiscal challenges facing San Francisco.

The progressive tax structure reflects lessons learned from failed transit measures in other cities. By charging large property owners significantly more while keeping rates manageable for small homeowners, the proposal aims to build a sustainable coalition.

The GrowSF Take

We're glad to see these tax measures take shape, and this early report gives us hope that San Francisco can avoid devastating service cuts to public transit. The MTA has made enough cuts this year that, if the measure passes, it will avoid entering a death spiral of declining ridership and revenue.