SF finalizes plan to save Muni with parcel tax amid budget deficit: Here's how it would work

SAN FRANCISCO (KGO) -- In San Francisco, city officials have finalized a plan they say could be key to saving Muni service.

It's a parcel tax that would charge most homeowners at least $129 a year if approved by voters. The finalized plan is an update on a proposal first introduced in December.

Mayor Daniel Lurie is billing this as a savior for the struggling Muni, but it would be another tax on San Francisco residents who are already paying to support transit through measures passed in 2018 and 2022.

All of this is proposed as the SFMTA faces a more than $300 million deficit after the pandemic took a toll on ridership and other funding sources.

Now, with state and federal pandemic relief ending, the parcel tax is being looked to as a solution.

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The proposal drew push back from community members in December, concerned that the city's proposal would let property owners pass the cost on to renters.

Since then, negotiations continued between city officials and transit advocates.

If voters approve it, this is how the tax charges would work:

• Owners of a single-family home up to 3,000 square feet would pay $129 per year.


• Multifamily homes would pay $249 a year up to 5,000 square feet.


• Non-residential property owners would be charged $799 up to 5,000 square feet.

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Residents could face higher fees if their homes and buildings are bigger than those listed maximums.

There are also caps on how much some residenths will pay, something SFMTA officials explained during Tuesday night's board meeting. A representative said that the total cap for a multifamily parcel will be 50,000 square feet, a reduction from the Dec. 8 proposal, which had a cap of 250,000 square feet.

If you're a renter, you might not escape this tax. Owners of rent-controlled properties can pass on up to 50% of the parcel tax on a unit. The cap is $65 a year.

Some locals say it's not ideal but also recognize the impacts the deficit could have.

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"I think it's important that we keep our public transit funded and, you know, keep it in good operation. Obviously, it's unfortunate that the tax would be on the burden of small businesses and renters," said Alex a Muni rider.

Together, the changes from the parcel tax would raise about $183 million a year to help close the budget gap.

There's still a one cent regional sales tax measure, and cost-cutting, that's needed to do the rest.

For the parcel tax, next steps include drafting the ballot language and gathering signatures so voters can decide on the plan in November.