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Mayor’s office and SFMTA lay out parcel‑tax options to close Muni’s budget gap

Municipal Transportation Agency Board of Directors and Parking Authority Commission · November 18, 2025
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Summary

City staff presented two draft parcel tax structures intended to raise at least $150 million annually for Muni service, proposing progressive square‑footage tiers, exemptions and caps; transit coalitions urged a larger, more progressive, inflation‑indexed measure that prevents pass‑throughs to tenants.

SFMTA staff and the mayor’s infrastructure chief presented two draft parcel‑tax options Nov. 28 designed to raise local funding for Muni alongside the regional Connected Bay Area sales tax. The administration described a three‑leg strategy — agency efficiencies, the regional sales tax, and a local parcel tax — to address a multi‑year operating deficit.

Staff framed two related parcel‑tax options that split parcels into residential and nonresidential groups and combine a flat base charge with a square‑footage surcharge above a 3,000 sq. ft. threshold. In the first option, residential parcels under 3,000 sq. ft. would pay a flat $150 and $0.25 per…

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