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County staff present menu of tax options; Board directs further research and polling

Sacramento County Board of Supervisors · February 17, 2026

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Summary

County fiscal staff and HDL consultants presented a menu of possible local tax measures — from utility‑user and sales taxes to parcel, business license and cannabis taxes — and the Board directed staff to research, poll and prepare options for a potential ballot measure no earlier than 2028.

County fiscal staff and HDL consultants presented a comprehensive study on Jan. 27 of local tax options that could raise discretionary revenue for Sacramento County. The Board directed staff to carry out further research and polling to assess voter support and implementation mechanics.

Chief Fiscal Officer Amanda Thomas introduced HDL senior advisor Ken Duran, who described the tax types studied — utility users’ tax (current county rate 2.5% in unincorporated areas), destination‑based transaction and use taxes (TUT), parcel taxes, business license/gross‑receipts taxes, transient occupancy tax (TOT) adjustments, property transfer taxes, admissions taxes, and cannabis taxes. Duran showed rough revenue illustrations (for example, a 0.5% unincorporated‑area sales tax could generate an estimated $60.8 million countywide) and noted implementation and equity tradeoffs, including administration costs and regressivity of utility taxes.

Supervisors asked for clarifications on historical rate changes, geographic application (for example Discovery Park and county‑owned facilities), and caps or competitive impacts with cities. The Board voted to direct staff to proceed with further research and polling and to begin preparations for any ballot measure process no earlier than 2028. Supervisors emphasized prioritizing transportation projects in outreach and being careful with polling phrasing.