San Carlos puts half-cent sales tax measure on November ballot

If ultimately passed by voters, the sales tax would add 5 cents to the total on a $10 purchase.

The city’s current sales tax rate is 9.375% on purchases, with no dedicated local sales tax bringing revenue directly to the city. Of the existing sales tax, approximately 11% of the revenue stays within San Carlos, while the majority is dispersed to local agencies, the county and state.

The sales tax rate within the county is 9.375%, and cities have a 0.5% capacity available to seek locally.

Moving ahead with a sales tax measure in November lets the city get ahead of any other tax measure that could close the gap in maximum rates instead of the city, Administrative Services Director Rebecca Mendenhall said.

The regional transit measure that will also be considered on November ballots would not affect the city’s capacity, but another revenue measure to be sought in coming years by the county could, she said.

“The window is closing to use that remaining capacity,” Mendenhall said.

If passed, the half-cent sales tax would sunset after 14 years, unless otherwise approved by voters.

Public commenters were split on their support for a local tax increase, but councilmembers agreed to move forward due to rising operating costs.

“Please know costs are up for the city as well, and our current dollars simply do not stretch as far as they used to,” Councilmember Sara McDowell said.

Priority areas for revenue, polled by community members, include maintaining existing parks and community facilities and adding new ones, fixing potholes and maintaining city streets, investing in public safety and emergency response teams, repairing aging infrastructure and reinvigorating downtown San Carlos.

A poll conducted by consultants True North Research also found strong support from residents for a sales tax. Of those polled, approximately 63% said they would probably or definitely vote in favor of the measure.

“I think the striking pattern in your data, which is not the same as we’ve seen in other surveys, is just how resilient community opinion is about this issue,” consultant Dr. Timothy McLarney said.

McDowell said moving forward with a sales tax measure is an opportunity for the city to invest in itself. The councilmember also reflected on a bond measure passed in the 1990s that funded the city’s library.

“These were massive projects in our community that forward-thinking councils and forward-thinking community members decided to invest in, and thank goodness they did because we love these amenities,” McDowell said. “This is once again an opportunity for our city to invest in our community.”

Should the measure pass, the city’s sales tax would be equal to that in Belmont, Brisbane, Colma, Daly City, East Palo Alto, Half Moon Bay, Pacifica, Redwood City, San Bruno and South San Francisco.

The sales tax measure would need a simple majority to pass. If passed, it would go into effect April 1, 2027.

By placing this measure on November ballots, “we are not imposing a tax — we are empowering our residents to decide the future of our city,” Mayor Pranita Venkatesh said.