San Francisco
Prop HParcel Tax to Fund Muni Operations
Watch the backstory
Read the transcript
In June 2022, a 400 million dollar bond for Muni and street safety got 65 percent of the vote. It needed two-thirds, so it failed.
This November, Prop H asks for a parcel tax to fund Muni. Why now?
Pandemic relief that helped pay for Muni has run out.
Its budget counts on two November measures, a regional sales tax and this parcel tax, along with ongoing efficiencies and cost savings.
Without new money, SFMTA projects a shortfall of about 350 million dollars a year starting July 2027.
If one or both transit measures fail, SFMTA's February 2026 options include these four kinds of cuts, with estimated savings.
These are options. No cuts have been decided.
Opponents call the cut warnings false threats and say a new tax isn't the only option. In July 2025, the Controller's working group said some recent cuts give ongoing savings that could reduce the deficit. It also found that if no ballot measures passed, every non-ballot option in its six packages would cover only 222 million of the 320 million dollars needed.
SFMTA's budget counts on both measures. If both fail, the Controller expects pressure to use the General Fund for part of a 338 million dollar shortfall over the next two budget years.
The Controller estimates, based on current parcel data, that Prop H would raise about 177 million dollars a year, growing with inflation, for 15 years. The total depends on how many exemptions are requested and granted.
It passes if more than half of the votes are YES.
Illustrative example: a 1,500 square foot home assessed at 800,000 dollars, with an owner under 65, has a property tax bill of about 10,269 dollars a year at 2025-26 rates.
Prop H would add 129 dollars a year for that home.
An owner who is 65 or older before July 1 of the tax year and lives in a single-family home or condo as their main home can apply to SFMTA to be exempt, the Controller says.
The tax grows with building size: a single-family home of 4,000 square feet, also assessed at 800,000 dollars, would pay 549 dollars a year, 5.3 percent of the same 10,269 dollar bill.
For an apartment building, an owner who is 65 or older before July 1 and lives in a unit as their main home can apply for 249 dollars off.
SPUR's paid argument for Prop H says ninety-five percent of single-family homeowners would pay 129 dollars. Opponents say the tax is based on square footage, not value, so a modest home can owe nearly the same tax as a far more valuable home of similar size.
Landlords may pass up to half of the tax, at most 65 dollars per unit a year, to rent-controlled tenants whose rent was set before June 1, 2027.
Voters signed a petition to put it on the ballot.
As of October 26, 2026, the YES committee reported raising about 5.1 million dollars, some of it spent on Measure RTM. No opposing committee had filed.
A YES vote creates a yearly parcel tax for Muni service, July 2027 through June 2042.
A NO vote creates no parcel tax. Muni keeps its current funding sources.
Sources and the full analysis are at ballotbackstory.org.
Ballot Backstory. Why is this on my ballot?
Why is Muni asking again? · Length: 1:52
Read the transcript
In June 2022, a bond for Muni and street safety got 65 percent but needed two-thirds, so it failed.
Now Prop H seeks a tax for Muni, and Measure RTM a regional sales tax for Muni, BART and other Bay Area transit. Why again?
In 2024, voters passed a transit ride-hail tax, but a competing measure blocked it.
In 2025, the state allowed a vote on a regional sales tax. A 2026 state law then allowed up to 590 million dollars in loans to Muni, BART, Caltrain and AC Transit.
The SFMTA says pandemic relief that helped pay for Muni has run out.
Without new money, it faces a shortfall of about 350 million dollars a year from July 2027.
Prop H taxes property owners. The Controller estimates it would raise about 177 million dollars a year, depending on how many exemptions are granted. It needs over half the votes.
RTM, a five-county sales tax, would raise about 980 million dollars a year, the impartial analysis estimates. Of the money raised in San Francisco, about 63 percent goes to Muni and 29 percent to BART. It needs a majority of all five counties' votes combined.
The SFMTA's budget plan counts on both, which share the November 3 ballot.
Prop H got on the ballot by voter petition.
YES on Prop H creates a Muni parcel tax through June 2042. NO means none.
YES on RTM creates a 14-year transit sales tax. NO means no new tax.
Sources and the full analysis are at ballotbackstory.org.
Ballot Backstory. Why is this on my ballot?
What your vote does
A YES vote means
A new yearly tax on real estate (a parcel tax) would pay for Muni service from July 2027 through June 2042. 3
A NO vote means
No parcel tax would be created. Muni service would stay funded by fares and local, state and federal sources, as it is now. 3
Both ovals are empty on purpose. The choice is yours.
Shall the City fund Muni service through a new annual parcel tax on real estate at rates ranging from $129 per parcel up to a maximum of $400,000 per parcel, depending on the type of property and its size and adjusted annually for inflation, for estimated revenue of $177 million a year for 15 years?
This is the exact wording from the official voter guide.
If it fails
Timing: from July 2027
SFMTA, the City agency that runs Muni, projects a budget gap of about $350 million a year starting in July 2027 without new money. If one or both transit tax measures fail, its published options include cutting up to 20 lines. These are options, not decisions. 92322
- SFMTA's February 2026 forecast shows gaps of $307 million in FY26-27 and $344 million in FY27-28. In July 2025, the Controller's working group reported deficits of about $320 million in FY27 and $350 million in FY28. A review for the Metropolitan Transportation Commission found $322 million for FY 2027. 2311342726
- SFMTA's February 2026 options if one or both measures fail: cut up to 20 routes (saving $70–150 million), double waits on Metro, Rapid and Frequent lines ($30–80 million), end regular service at 9 p.m. ($30 million), or reduce or cut cable cars and the F line ($70–140 million). 23
- The Controller's economic report (September 2026) studied a list of likely cuts SFMTA gave it in 2025, saving about what the tax would raise. It estimated 18% fewer Muni trips and over 15,000 hours of added trip delay each weekday. 24
- No cuts have been decided. If one or both measures fail, SFMTA's timeline starts with public outreach in winter 2027. In spring 2027, the SFMTA Board and the Board of Supervisors would vote on any route eliminations or fare changes. Approved cuts would start in fall 2027. 23
- SFMTA has a $143 million reserve and a one-time $200 million state loan for FY26-27. The Controller's July 2025 working group studied options needing no ballot measure, including some Muni cuts and parking increases. All of them, in six packages, would cover only $222 million of $320 million needed. 1134
- SFMTA's budget counts on both, including about $155 million a year from RTM. Prop H estimates range from about $150 million plus $10 million (SFMTA) to $184 million (Controller's economic report). If both fail, the Controller expects pressure to use the General Fund for part of a $338 million gap. 2311243335
- Opponents call cut warnings "false threats," saying a new tax isn't the only option. In July 2025, the Controller's working group said some recent cuts give ongoing savings that could reduce the deficit. A draft MTC review urged more efficiency steps, like assessing scheduling; the SFMTA Board adopted them all. 6342526
- SFMTA's cut options cover "one or both" measures failing. RTM passes only with a majority of voters across its whole district. Labor contracts for FY27-28 and later are still to be negotiated. The Controller's economic report did not weigh other cuts or new revenue. 232417
Why it’s on the ballot now
Federal and state pandemic relief helped pay for Muni in recent years. The SFMTA's new budget includes none of it, and the SFMTA says that money has run out. 119
In February 2026, the SFMTA board reviewed a $307 million budget shortfall for 2026-27 and $344 million for the next year. A local parcel tax was one option staff listed. 11
To balance its 2026-27 budget, the SFMTA took a $200 million state loan in June 2026. It pays about $8 million a year in interest for the first two years, then about $30 million a year for ten years. 11
The SFMTA budget passed in April 2026 counts on two November ballot measures, a regional sales tax and a local parcel tax, along with ongoing efficiencies and cost savings, to close its gap. 911
The SFMTA says that without new money, it faces a shortfall of about $350 million a year starting July 2027, and would have to make big cuts to Muni service. 9
How we got here
Parking tax share for Muni
Voters approved Prop A, which gives the SFMTA 80% of the City's parking tax money. 16
Transportation bond passes
Voters approved Prop A, a $500 million bond for Muni and street safety projects, with 71% of the vote. 13
Muni bond falls short
Prop A, a $400 million Muni and street safety bond, got 65.11% of the vote but needed two-thirds, so it failed. 10
Ride-hail tax for transit blocked
Voters passed Prop L, a tax on ride-hail and self-driving car companies to fund transit. It did not take effect because the competing Prop M got more votes. 14
Regional transit tax vote allowed
State law SB 63 allowed a November 2026 vote on a 14-year regional sales tax for transit: 1% in San Francisco and 0.5% in Alameda, Contra Costa, San Mateo and Santa Clara counties. 1512
SFMTA budget counts on new taxes
The SFMTA board approved a two-year budget that assumes money from a regional sales tax and a local parcel tax on the November 2026 ballot. 911
State loans for Bay Area transit
A 2026 state budget law (AB 117) authorized up to $590 million in loans, through the Metropolitan Transportation Commission, to avert service cuts at Muni, BART, Caltrain and AC Transit in the 2026–27 fiscal year. The SFMTA says this helps bridge its deficit until regional tax money arrives. 113736
Prop H qualifies for the ballot
Elections officials certified that the Prop H petition had enough valid signatures to make the ballot. 5
Regional transit tax sent to voters
The regional transit district asked five counties, including San Francisco, to put the regional transit tax on the November 3, 2026 ballot. 15
Prop H: Parcel Tax to Fund Muni Operations
The money
The Controller estimates, based on current parcel data, that the tax would raise about $177 million a year starting in 2027-2028, growing with inflation. The total depends on how many exemptions are requested and granted. Running the tax could cost the City about $2 million to $3 million to set up, then about $4 million to $6 million a year, likely decreasing over time. 4
- Amount
- About $177 million a year
- How long
- 15 years (July 2027 – June 2042)
- Who pays
- Property owners pay each year. The 2027 rate starts at $129 a year for a single-family home up to 3,000 square feet, $249 for an apartment building up to 5,000 square feet and $799 for a business or mixed-use property up to 5,000 square feet. It grows with building size. The tax is capped at $50,000 per apartment building and $400,000 per business or mixed-use parcel. Owners can pass up to half, at most $65 a year per unit, to tenants in rent-controlled units with rent set before June 1, 2027. Owners 65 or older who live in their own home can apply to SFMTA for a discount or exemption, the Controller says. 34
- Vote needed to pass
- Needs a simple majority (50% + 1) to passSome measures need 55% or two-thirds of votes to pass. This one needs only a simple majority.
It passes if more than half of the votes are YES (50% plus 1). 2
Locked-in budget
Earlier measures already steer City money to Muni. Prop E set a Charter formula for a minimum General Fund payment, and Prop A (2007) gives the SFMTA 80% of parking tax money. The SFMTA budgets these General Fund transfers from the Controller's estimates. Prop H money could be used only for Muni service and running the tax. 16113
Who bears the cost
Homeowners, including condo owners
What they already pay
- San Francisco's 2025-26 property tax rate is about 1.18% of assessed value: the 1% base tax plus voter-approved debt. Under Prop 13, if nothing new is assessed, assessed value rises by inflation or 2% a year, whichever is lower. 283331
- Flat parcel taxes the Treasurer lists include $334.38 (school parcel tax, 2025-26), $319.34 (teacher support, 2025-26), $43 per home (school facilities, 2025-26), $99 (City College) and $12 (Bay restoration). 29
If it passes
- A single-family home or condo pays $129 a year for up to 3,000 square feet of building. Above that, it pays $0.42 per square foot up to 5,000, and $1.99 per square foot beyond. The tax runs July 2027 to June 2042 and rises with inflation. 8324
- An owner who is 65 or older before July 1 of the tax year and lives in a single-family home or condo as their main home can apply to SFMTA to be exempt, the Controller says. Property that pays no regular property tax is also exempt. 4248
- The Controller's economic report (September 2026) estimates that over the tax's 15-year life, at current property values, it would lower residential property values by 0.2% on average. If the tax fails and the possible Muni cuts happen, it estimates home values could fall 0.6% to 0.9%. 24
- SPUR's paid argument for Prop H says ninety-five percent of single-family homeowners would pay $129. Opponents say the tax is based on square footage, not value, so a modest home can owe nearly the same tax as a far more valuable home of similar size. 76
| Example | Pays now | Added | % of current |
|---|---|---|---|
| Illustrative example: single-family home or condo, 1,500 sq ft, assessed at $800,000, owner under 65 (bill at 2025-26 rates). 33 | $10,269 a year | +$129 a year | +1.3% |
| Illustrative example: the same home, where an owner 65 or older before July 1 of the tax year lives as their main home and has applied to SFMTA for the exemption. 8334 | Not calculated | No change | Not calculated |
| Illustrative example: single-family home, 4,000 sq ft, also assessed at $800,000, owner under 65 (bill at 2025-26 rates). 33 | $10,269 a year | +$549 a year | +5.3% |
Owners of apartment buildings (and, through pass-through, some tenants)
What they already pay
If it passes
- An apartment building pays $249 a year up to 5,000 square feet, plus $0.195 per square foot above, up to $50,000. An owner 65 or older before July 1 who lives in a unit as their main home can apply for $249 off. SRO space is not taxed. 843
- In the six-unit example, the tax works out to $74 per unit a year. The landlord could pass up to $37 per unit to each rent-controlled tenant whose rent was set before June 1, 2027. 33
| Example | Pays now | Added | % of current |
|---|---|---|---|
| Illustrative example: six-unit rent-controlled apartment building, 6,000 sq ft, assessed at $2,000,000 (bill at 2025-26 rates). 33 | $24,547 a year | +$444 a year | +1.8% |
Owners of business and other non-residential property
What they already pay
If it passes
- Non-residential property pays $799 a year for up to 5,000 square feet. Above that it pays $0.76, $0.84 or $0.99 per square foot as size grows, up to $400,000 per parcel. Mixed-use parcels combine both rates. Land with no buildings pays $392 if over 2,000 square feet. 83
- The Controller's economic report estimates non-residential owners would pay about 75% of the tax ($137 million a year) and residential owners 25% ($48 million). Over 15 years, it estimates the tax would lower non-residential property values by 1.9%, and the possible cuts by 1.1% to 1.2%, citywide averages. 24
| Example | Pays now | Added | % of current |
|---|---|---|---|
| Illustrative example: office or retail building, 20,000 sq ft, assessed at $8,000,000 (bill at 2025-26 rates). 33 | $95,379 a year | +$12,199 a year | +12.8% |
| Illustrative example: large downtown office tower, 500,000 sq ft, which reaches the $400,000 cap. 33 | Not calculated | +$400,000 a year | Not calculated |
Passing the cost on
Landlords may pass up to half the tax, at most $65 per unit a year (rising with inflation), to rent-controlled tenants with rent set before June 1, 2027. Rent Board cost-based increases can't include it. Most other older units have a state cap: 5% plus inflation, up to 10%. 832
Example figures are calculated by code from the cited rates, not written by AI. How we calculate
Promised and delivered
SF Prop A (2022)
SF Prop L (2024)
Who’s behind it
How it got on the ballot: Citizen petition
Voters signed a petition to put it on the ballot. On June 12, 2026, the Department of Elections found it had more than the 10,615 valid signatures needed. 5
Where the support comes from
Placed by who endorsed it and who funded it, not by our opinion. How we place measures
Progressive coalition groups San Francisco League of Pissed Off Voters and Harvey Milk LGBTQ Democratic Club recommend Yes on Prop H. The moderate coalition is split: GrowSF and San Francisco Chamber of Commerce recommend Yes, and TogetherSF Action (now Blueprint SF) recommends No. The San Francisco Democratic Party, San Francisco Labor Council and SPUR recommend Yes; the San Francisco Republican Party recommends No. Anthropic and Ripple Labs Inc. are among the largest donors to the Yes committee; no committee opposing Prop H has reported contributions. 20181921
Endorsements
| Group | YES | NO | Neutral |
|---|---|---|---|
| Progressive slate | |||
| San Francisco League of Pissed Off Voters | Yes | ||
| Harvey Milk LGBTQ Democratic Club | Yes | ||
| Moderate slate | |||
| GrowSF | Yes | ||
| TogetherSF Action (now Blueprint SF) | No | ||
| San Francisco Chamber of Commerce | Yes | ||
| Political parties | |||
| San Francisco Democratic Party | Yes | ||
| San Francisco Republican Party | No | ||
| San Francisco Green Party | Yes | ||
| Labor | |||
| San Francisco Labor Council | Yes | ||
| Other groups | |||
| SPUR | Yes | ||
| League of Women Voters of San Francisco | Yes | ||
| YIMBY Action | Yes | ||
| San Francisco Women's Political Committee | Yes | ||
| Alice B. Toklas LGBTQ Democratic Club | Yes | ||
| Edwin M. Lee Asian Pacific Democratic Club | Yes | ||
Follow the money
YESTop donors
- Anthropic$500K
Who is this?
Anthropic is an AI company based in San Francisco. Its main product is Claude, a family of language models. 1
- Ripple Labs Inc.$500K
Who is this?
Technology company that offers enterprise blockchain products. It was founded in 2012 and is based in San Francisco. 1
- Committee to Expand the Middle Class Issues Committee, Sponsored by Airbnb, Inc.$500K
- Visa, Inc.$500K
Who is this?
Visa is a payment card company based in San Francisco. Its cards include credit, debit and prepaid cards. 1
- OpenAI$500K
Who is this?
OpenAI is an AI company based in San Francisco. It makes AI models, such as the GPT series of language models. 1
- San Francisco Forward sponsored by San Francisco Chamber of Commerce$499K
Who is this?
SF Forward is the PAC of the San Francisco Chamber of Commerce. The Chamber's website says SF Forward supports and opposes ballot measures and issue campaigns. 1
What they’ve said
- Jeffrey Lawson$350K
- Emerson Collective LLC(Diedra Nelson)$200K
- Another Planet Entertainment LLC(Gregg Perloff)$100K
Who is this?
Concert production and artist management company in Berkeley, California. Gregg Perloff is one of its three founders, and it co-founded the Outside Lands festival. 1
- Chime Financial$100K
Who is this?
Financial technology company based in San Francisco. Its app offers fee-free checking and savings accounts and debit cards. 1
- The top 5 donors gave 49% of this side’s money.
- 23% came from outside San Francisco.
- 3% came from outside California.
- Independent spending (not controlled by the campaign): $36.6K
Committees: Mayor Lurie's Yes on H Committee (Stronger Muni for All, Mayor Lurie's Ballot Measure Committee)
- Mayor Lurie's Yes on H Committee also spent money supporting Measure RTM (its Schedule D shows payments to the RTM campaign), so not all of its total went to Prop H.
- Mayor Lurie's Yes on H Committee (Stronger Muni for All, Mayor Lurie's Ballot Measure Committee): includes $3,800 of 24-hour late contributions (Form 497) dated after its latest Form 460 period ended 2026-10-17.
- YES side independent expenditures (Form 496) of $36,649, mostly by: GrowSF Voter Guide $21,768; SAN FRANCISCO ELECTRICAL CONTRACTORS ASSOCIATION PAC $10,000; Building a Working SF Sponsored by Labor Organizations $3,535. These are separate from, and not included in, total_raised.
- No opposing committee has filed campaign statements for this measure as of this refresh.
- Totals are contributions reported on Form 460 (Schedule A monetary, C non-monetary, loans) plus Form 497 late reports, from Jan 2025 or the committee's 2026 start; amended filings replace the original. Unitemized gifts under $100 are in totals but not in donor lists or geography shares. Outside-SF/CA shares use itemized gifts only.
- Source cutoff: the SF Ethics Commission data on DataSF was loaded 2026-10-27 and includes filings received through 2026-10-26. as_of is the latest filing from this measure's own committees, which can be earlier.
- Committees from the June 2, 2026 election (Props A–D on business taxes, term limits and the earthquake bond) are not counted. See pipeline/config/money_committees.yaml for each exclusion.
Sources: SF Ethics Commission campaign finance transactions (DataSF pitq-e56w) · SF Ethics Commission campaign finance summary totals (DataSF 9ggq-m8hp) · SF Ethics Commission campaign filers (DataSF 4c8t-ngau)
Related and competing measures
The strongest case for and against
Each side’s best argument, written as its supporters would make it. Neither is our view.
Strongest case for
Supporters include Mayor Lurie, the entire Board of Supervisors, the Labor Council, the Chamber of Commerce, the Tenants Union and Apartment Association. They say Muni is a lifeline for workers, seniors and students, and 40% of San Franciscans who work downtown take it. They say COVID relief that kept Muni running is gone. Without Prop H, they warn, service could be cut 30% with at least 20 bus routes eliminated. They say Muni has already cut 500 vacant jobs and acted to save $137 million a year. They say the largest properties pay the most, rent-controlled units pay at most $65 a year, and audits and citizen oversight keep money for Muni. 6
Strongest case against
Opponents, including the San Francisco Republican Party and the Business League, say they support Muni but not a 15-year tax with no binding conditions. They argue Prop H sets no efficiency or performance targets. They note its efficiency review is due in April 2028, after the tax starts, and goes only to the SFMTA's own board, and they say nothing requires the board to act on it. They say the tax is based on building size, not value, so a modest home can owe about the same as a far more valuable one of similar size nearby. Landlords can also pass part of it to renters. The Business League asks what happens when the next funding gap comes. 678
Sources
Every fact on this page links to one of these sources.
- Official ballot question, Proposition H (en edition), SF Voter Information Pamphlet, Nov 3, 2026, p. 124
- Vote threshold for Proposition H, SF Voter Information Pamphlet, Nov 3, 2026, p. 124
- Ballot Simplification Council digest of Proposition H, SF Voter Information Pamphlet, Nov 3, 2026, p. 124-125
- Controller's Statement on Proposition H, SF Voter Information Pamphlet, Nov 3, 2026, p. 125
- How Proposition H got on the ballot (Dept. of Elections), SF Voter Information Pamphlet, Nov 3, 2026, p. 125
- Proponent's and opponent's arguments and rebuttals on Proposition H, SF Voter Information Pamphlet, Nov 3, 2026, p. 126-127
- Paid arguments on Proposition H (not checked for accuracy by any official body), SF Voter Information Pamphlet, Nov 3, 2026, p. 128-131
- Legal text of Proposition H, SF Voter Information Pamphlet, Nov 3, 2026, p. 222-233
- SFMTA Budget Planning - FY 2026-27 and FY 2027-28
- Prop A Muni Reliability and Street Safety Bond (SFMTA)
- SFMTA Consolidated Budget FY 2026-27 and FY 2027-28
- Senator Arreguin press release on SB 63
- Passage of Prop A Means Better Muni & Safer Streets (SFMTA, 2014)
- Board of Supervisors Resolution 612-24 declaring Nov 5, 2024 election results
- SB 63 Regional Transit Measure (MTC)
- SFMTA FY2011 and FY2012 Revenue Explanation (SFMTA archive)
- Impartial Analysis of Regional Measure RTM (Public Transit Revenue Measure District's Legal Counsel), SF Voter Information Pamphlet, Nov 3, 2026, p. 52-53
- KQED Voter Guide: Prop H (supporters and opponents listed)
- SPUR: recommendations for the November 3, 2026 election
- How endorsers line up on Prop H: this guide's coalition groupings (endorsement method 1.0, data as of 2026-10-27)
- Campaign finance filings as of 2026-10-26 (compiled by this guide from SF Ethics Commission campaign finance transactions (DataSF pitq-e56w); data/money/sf-2026-11-h.json, main@0dcbec8)
- Muni and Street Safety Impacts without Necessary Funding (SFMTA)
- SFMTA Budget and Local Revenue Measure Update, SFCTA Board Item 12 presentation (Feb 24, 2026)
- Controller's Office of Economic Analysis: Muni parcel tax economic impact report
- MTC: Financial Efficiency Review Independent Oversight Committee receives draft report
- SFMTA press release: SFMTA Board adopts MTC Financial Efficiency Review recommendations
- MTC blog: Third-party review confirms top transit agencies' operating deficits
- Board of Supervisors Resolution 447-25 levying property taxes for FY 2025-26
- SF Treasurer & Tax Collector: Parcel tax exemptions and special assessments
- Transfer tax (SF Assessor-Recorder, sf.gov)
- Assessor-Recorder Joaquin Torres releases 2026-2027 assessment roll (sf.gov)
- California Attorney General: Rent caps under the Tenant Protection Act
- Cost examples for Prop H: this guide's calculations from the cited rates (ai/impact_costs.py)
- Muni Funding Working Group Final Report (SF Controller's Office, July 2025)
- Controller's Revenue Letter, FY 2026-27 and FY 2027-28 Proposed Budget (June 9, 2026)
- MTC news: Financial Efficiency Review Phase One report (node 4043252)
- The 2026-27 California Spending Plan: Transportation (LAO)