San Francisco mayor launches November parcel-tax drive aimed at preventing deep Muni route and frequency cuts

A local funding proposal emerges as transit agencies face widening post-pandemic budget gaps

San Francisco Mayor Daniel Lurie and a coalition of transit advocates have launched a signature drive for a November ballot measure designed to prevent major service reductions on Muni, the city’s bus, rail and streetcar network. The proposal centers on a parcel tax that would raise ongoing operating revenue for the San Francisco Municipal Transportation Agency (SFMTA) as it confronts a structural budget shortfall that officials say threatens route eliminations, reduced frequencies and potential changes to late-night service.

The campaign rollout marks a shift from internal cost-cutting toward voter-approved revenue as a primary strategy to maintain service levels. SFMTA has already pursued savings through a hiring freeze and other operational efficiencies, and the agency has described its fiscal challenge as growing over the next several years without new revenue.

How the measure is structured

Under the framework presented by city leaders, the measure would levy an annual tax on residential and commercial properties in San Francisco, with rates varying by property type and size. A commonly cited version of the proposal sets most single-family homeowners at $129 per year, while the highest tiers would apply to large commercial properties and corporate landowners, reaching up to $400,000 annually.

The structure also includes provisions affecting renters. Landlords of rent-controlled apartments could pass through a limited portion of the tax, but tenant charges would be capped at $65 per year.

• Targeted annual revenue: about $160 million for Muni operations.
• Stated purpose: avert service reductions tied to the agency’s projected operating deficit.
• Mechanism: citywide parcel tax requiring voter approval.

What is driving the proposal

SFMTA and city budget officials have warned that the agency faces a large annual gap between expected revenues and the cost of current service levels, a problem shared across the Bay Area as ridership remains below pre-pandemic levels and time-limited federal transit relief has wound down. The risk is not limited to San Francisco: BART has publicly adopted contingency plans outlining drastic service reductions beginning in 2027 if new funding does not materialize.

In San Francisco, the proposed parcel tax is intended as a local backstop focused on Muni, separate from regional efforts being discussed for the broader transit network. SFMTA planning materials have also referenced a potential regional ballot measure in 2026 that could provide additional support for multiple agencies, including Muni.

What happens next

Supporters must collect enough valid signatures to qualify the parcel tax for the November ballot. If qualified, the campaign will move into a citywide debate over the size, fairness and duration of the tax, and over how strictly funds should be dedicated to transit operations versus other transportation needs.

City officials have framed the measure as essential to maintaining frequent, reliable transit as part of San Francisco’s economic recovery and daily mobility for residents who rely on Muni.

The SFMTA is expected to continue releasing budget updates as the signature drive proceeds and as the agency refines scenarios for service levels under different funding outcomes.