The two-part plan to protect Muni

San Francisco’s beloved Muni transit system is facing a $307 million funding gap. The SFMTA has already made significant efficiency improvements to reduce the deficit. Now, two November 2026 ballot measures will need to pass – a local variable-rate parcel tax and a regional sales tax – to protect and slightly improve the current level of Muni service.

Part 1. Local parcel tax

This progressive, variable-rate parcel tax is tiered with differing rates (outlined in the table) for single-family, multifamily, and non-residential parcels that would generate ~$160 million for Muni operations. Smaller parcels pay less, larger parcels pay more. This fills about half of the Muni funding gap of $307 million.

Fairness:

  • Largest properties pay largest amount

  • 95% of single-family residences pay flat $129 annual rate

  • Rent controlled units have a capped passthrough of $65 annually

  • Exemptions for seniors 65+

Accountability:

  • Sunsets in 15 years

  • Requires third-party financial efficiency review

  • Establishes citizens’ oversight group to review revenue and expeditures

Part 2. Regional sales tax

This regional sales tax funds transit operations for the four largest operators facing a fiscal cliff – Muni, BART, Caltrain, AC Transit – and all other agencies in the five counties. ~$170 million of the money generated will fund Muni, filling about half of the $307 million Muni funding gap.

Improvements:

  • Equity fare discounts

  • Safety, cleanliness, and convenience

  • Seamless integration of transit services

Accountability:

  • Sunsets in 14 years

  • Independent Oversight Committee for expenditures

  • Ad Hoc Adjudication Committee to maintain quality across operators

  • Third-party financial efficiency review of four largest operators