The city of San Mateo is exploring a sales tax measure this November, citing long-term structural deficits that could start impeding basic city services and infrastructure needs.
The city is already facing a $14 million projected deficit this fiscal year, which ends in June, and a continuous shortfall in the future.
“We’re still looking at a $5 [million] to $7 million structural deficit for the next 10 years, and our reserves can get us by for the next few years, but we really need to look at how we get out of that structural deficit,” City Manager Alex Khojikian said during a council meeting Jan. 12.
Many cities are facing similar budgetary issues, as inflationary and other economic pressures continue elevating operating costs, among other issues. San Mateo also has a property transfer tax, and the slowdown in home sales has negatively impacted that revenue stream, Khojikian added.
According to a recently completed citywide survey, about 53% of voters would be in favor of a sales tax measure used to fund high-priority repairs and improvements to the city’s infrastructure, as well as other city services. A quarter-cent sales tax measure would be most feasible, the results showed, as other types of revenue measures, such as general obligation bonds, would be too risky. The former only needs a simple majority to pass, while the latter requires two-thirds of the vote.
Regional bodies are also weighing their options to add or extend sales tax measures soon. This November, Bay Area residents, including those on the Peninsula, will vote on a new sales tax measure to help close major transit agencies’ gaping deficits, and San Mateo County will have to decide if and when it plans to ask voters to extend Measure A, a countywide sales tax which expires in 2030.
“I don't think that any elected official wants to tax people especially during an economic downturn, but this is a really challenging time, and there are basic services that many folks need,” Deputy Mayor Nicole Fernandez said.
The sales tax wouldn’t apply to prescription medication and groceries.
“Sales tax gives us an opportunity to get revenue from visitors, and people who are not just members of the city, so it helps to spread the burden a little bit more,” Councilmember Lisa Diaz Nash said.
The city will make a final decision on whether to add the sales tax measure to the ballot by this summer.
(650) 344-5200 ext. 102
Daily Journal staff
{{description}}
Email notifications are only sent once a day, and only if there are new matching items.
Please purchase a Premium Subscription to continue reading.
To continue, please log in, or sign up for a new account.
We offer one free story view per month. If you register for an account, you will get two additional story views. After those three total views, we ask that you support us with a subscription.
A subscription to our digital content is so much more than just access to our valuable content. It means you’re helping to support a local community institution that has, from its very start, supported the betterment of our society. Thank you very much!
Only subscribers can view and post comments on articles.
Already a subscriber? Login Here
What the Constitution Means to Me Read moreWhat The Constitution Means To Me
You're invited to our Sale Like a Celebrity event, hosted by Expedia Cruises. Join us at Rou… Read moreCelebrity Cruises Special Event
Join us for community fun! Free antique and collectible appraisals by Clars Auction. Over 30… Read moreMillbrae Senior Showcase
Kick off 2026 with movement, confidence, and FUN! Join us for our Last Chance to Dance Studi… Read moreLast Chance to Dance Open House- Free Dance Demos, Food, Face Painting & More!
Success! An email has been sent to with a link to confirm list signup.
Error! There was an error processing your request.
Sorry, an error occurred.
Already Subscribed!
Cancel anytime
Thank you .
Your account has been registered, and you are now logged in.
Check your email for details.
Submitting this form below will send a message to your email with a link to change your password.
An email message containing instructions on how to reset your password has been sent to the email address listed on your account.
No promotional rates found.
Secure & Encrypted
Thank you.
Your gift purchase was successful! Your purchase was successful, and you are now logged in.
| Rate: | |
| Begins: | |
| Transaction ID: |
A receipt was sent to your email.
(0) comments
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.