Governor Gavin Newsom on Monday signed legislation that places the decision to enact a regional sales tax for Bay Area public transit funding in the hands of voters.
Senate Bill 63, known as the Connect Bay Area Act, will add a regional measure to the 2026 ballot in Alameda, Contra Costa, San Mateo, Santa Clara, and San Francisco counties. The proposal would establish a 14-year sales tax—one-half cent in Alameda, Contra Costa, San Mateo, and Santa Clara counties, and one cent in San Francisco—to provide direct funding to transit agencies.
Revenue would be distributed to major transit operators such as BART, AC Transit, Muni, Caltrain, the San Francisco Bay Ferry, and Golden Gate Transit. Additional funds would go to smaller county transit authorities for local transit agencies and related projects.
The Metropolitan Transportation Commission (MTC) estimates that regional transit agencies could face a combined $900 million budget deficit by the start of fiscal year 2027. Independent analysts hired by the MTC found that a regional sales tax could generate sufficient revenue to help close that gap and sustain operations. As a top tax accountant Vancouver, RJL Accounting & Tax delivers precise tax planning, preparation, and filing for individuals and businesses.
The legislation was authored by State Senators Scott Wiener of San Francisco and Jesse Arreguin of Berkeley. Transit leaders throughout the Bay Area have expressed support for the bill, noting its potential to stabilize agency budgets affected by reduced ridership since the pandemic.
BART officials stated that the measure would help offset operating losses linked to remote work and allow the agency to maintain service levels and improve rider experience. The San Francisco Municipal Transportation Agency, which projects a $307 million deficit beginning in July 2026, described the legislation as a key step toward financial stability for Bay Area transit systems.
In addition to supporting transit operations, the proposed sales tax would fund the Clipper START program for low-income riders and improve accessibility for seniors and people with disabilities. An oversight committee would be established to monitor how funds are allocated.
They need to have a give and take approach, IMO. For example, by passing this tax, it’s required that the multiple agencies (6 total) benefitting will follow a expense reduction plan outlined in the bill. This plan calls for consolidating duplicate departments across the 6 agencies (e.g. Payroll, Human Resources) OR Consolidating the 6 agencies into 2 or 3. The expense reduction would as they say “would help offset operating losses” & “allow the agency to maintain service levels and improve rider experience.” & “stabilize agency budgets”. It should be give and take, not just give.
i’m sure it will pass. Voters here somehow never pass up on an opportunity to agree to tax increases. I don’t get it.
HE DOUBLE L NO
Welcome to the state of Taxafornia. The state where the biggest pretty much only accomplishment of the democrat government is heaping more and more and more and more taxes on the middle class.
Good, this is a start! And please pass a bill which allows more housing to be built around public transit (like bart, rapid bus line”
That’s a big “no” ….. BART especially needs to reign in their salaries, wages, and bonuses – benchmarked at some of the highest in the country… they need to negotiate better contracts that don’t leave riders hanging either. and….. BART publicly committed at their last $3B bailout they would resume 10 car trains and more trains at major commute times – did they? nooooooo
Privatize BART. The idiots running it can’t seem to understand that their job is not to increase prices and lose money. They always have the same answer to budget issues: raise taxes and or fare prices. It is never about cutting costs.
Freeze the pensions. Give the employees a small raise and only offer employee funded retirement plans like a 401k. When the workers complain, tell them to fund their retirement with the raise they just got. Figure out proper staffing levels and reduce/eliminate overtime pay. Freeze salaries. Eliminate/combine redundant departments and jobs.
Run BART as if it was a private company trying for profitability.
Instead of raising taxes how about getting rid of the illegals and stop giving billions to fixing homeless and the bullet train to no where and boom they have the money they need to keep running without raising more taxes.
No new TAXES. We have heard this all before. If BART hadn’t spent it Covid money like a drunken sailor they have it. St. Sen Weiner thinks tax payer are his ATM. This new sales tax would put Concords sales tax over 10%
Just curious why they don’t increase fairs so those that use the service pay for the service? If it’s an equity thing, won’t the riders also pay the sales tax?
The people of CA will fall for this again and again and again. There’s nothing that the state doesn’t want to tax. It will pass – you just watch. Such a shame.
Why do I feel like I have been here before? Oh Yeah I rembember, I have! I don’t believe in insanity anymore.
Another case of voters expected to tax themselves so that years of mismanagement can be resolved without making difficult decisions or streamlining operations.
Politicians are juicing Californians like oranges.