Transit tax opposition forms: Members from 5 counties, including San Mateo, mount opposition to another sales tax for transit

The measure has come under more scrutiny from some residents, claiming the sales tax — often considered the most regressive type of tax — would hike up rates to 10% or higher in many parts of the Bay Area.

“Are they going to come back in five to 10 years?” Marc Joffe, member of the Committee for Affordable Bay Area Transit, said. “We want to put a line in the sand here and tell them to start sharpening the pencil. How can transit be more efficient going forward?”

While leaders initially considered a business tax rather than sales tax, the idea was scrapped after some groups, including the Bay Area Council, said they wouldn’t support the former.

“I think it’s interesting that the Bay Area Council is really against the billionaire wealth tax but really for increasing taxes on poor people,” Joffe said. “If they think transit is so important to get people to offices, maybe they should be the ones stepping up to pay for it.”

The Committee for Affordable Bay Area Transit is made up of leaders and advocates from all counties where the measure would take effect — San Francisco, San Mateo, Alameda, Contra Costa and Santa Clara.

According to a recent press release, the coalition argues that the state should redirect a portion of its cap-and-invest funds currently allocated to high-speed rail, and pause two major capital projects, BART’s Silicon Valley extension and Caltrain’s downtown extension.

Advocates for the measure have argued that the public transit tax support is still lower than many other high-functioning systems throughout the world, and that the pandemic left long-term dents in agencies’ pockets across the country, not just in the Bay Area. Without adequate public transit, they say traffic congestion will only worsen.

“The pandemic came along, and that completely changed commuting patterns,” Adrian Brandt, member of the Caltrain Citizens Advisory Committee, said. “Costs have gone up, and there was no sustainable fare increase.”

Caltrain and BART have both said they could shut down within a couple years if they don’t receive the funding.

The measure would be the sixth transportation-dedicated sales tax in San Mateo County. Measures A, W, RR and the San Mateo County Transit District tax are administered by the county, with a portion of the state-mandated 7.25% sales tax going to local transportation efforts as well. Most cities on the Peninsula also have their own local sales taxes — with tax rates typically ranging between 9.625% to 9.875%. Some, like San Mateo and San Carlos, are poised to add another sales tax to their ballots this November as well.

While there is generally a 9.25% sales tax cap, many jurisdictions have received permission from the state to surpass that amount. The Connect Bay Area initiative, for instance, is exempt from the limit.

“They’re thinking, ‘well we’re getting bailed out by the government,’” said Peninsula resident Gregg Dieguez, a member of the Committee for Affordable Bay Area Transit. “They are used to spending our money, rather than reforming what they’re doing.”

As part of the authorizing legislation for the tax measure, a study was conducted on each agency on past and potential efficiency measures. The report recommended that Caltrain and BART enhance parking revenue, lease communications assets and increase employer-sponsored passes to improve their financial situation moving forward. Joffe said the recommendations are too vague and modest to effect the necessary structural change.

“We were very unimpressed,” he said.

The measure has divided city and county leaders on the Peninsula. San Mateo County Supervisor David Canepa has supported the measure, citing the potential shutdown of the region’s entire transit system and subsequent congestion if the measure doesn’t pass. Others, such as Supervisor Ray Mueller, say that another transportation-related sales tax infringes on the county’s ability to raise revenue for other critical services.