San Mateo County Board of Supervisors delays increasing sales tax discussion: Agenda item pulled as county tries to fill gap in state funding 

The morning after the agenda was published, Speier had the item pulled off, according to board President Noelia Corzo. Supervisor Gauthier said it was pulled because of the busy agenda. 

“I think Tuesday is a very heavy day for us … so we’re reconvening and it’s on pause for now,” Gauthier said. “But it’ll be an opportunity for the entire board to have a conversation instead of two people.” 

Increasing the allowable tax rate in the county could pave the way for a new sales tax to serve as a sustained revenue source. 

“Where we would land at the end, I don’t know, if it would’ve moved forward with it, I don’t know, but the idea was to put it on the agenda so we could have a robust conversation about it,” Gauthier said. 

The agenda item and associated resolution was proposed as “an insurance policy for some future time if we need to consider an increase,” Speier said previously. 

Gauthier and Corzo both said the increased rate could allow for a child care tax, for which Speier has previously voiced desire. Speier did not mention the child care tax when sharing the reason for the resolution. 

The legislative proposal could “help address affordability challenges for all San Mateo County residents, particularly at a time where potential funding reductions may cause severe disruptions in the provision of county services,” the former staff report said. 

On Tuesday, supervisors are slated to hold a press conference launching a campaign to urge the state to restore more than $157 million in funding to the county. San Mateo County is grappling with losing a previously guaranteed source of revenue from the state through the vehicle license fee shortfall refunds. 

Trying to close the gap in funding is top of mind of San Mateo County leaders. How to secure a new source of revenue would be the crux of any future discussion, Gauthier said. 

“We know the cost of living is so high, and we have to look at all the things,” Gauthier said.

To some supervisors, increasing taxes may not be the right approach. Supervisor Ray Mueller said previously he wouldn’t support pursuing a new sales tax, and Corzo said her way of addressing the VLF shortfall wouldn’t be through a tax either.