Measure H: H - Parcel Tax to Fund Public Muni Operations
San Francisco County · San Francisco County · November 3, 2026
The question on your ballot
Shall the City fund Muni service through a new annual parcel tax on real estate at rates ranging from $129 per parcel up to a maximum of $400,000 per parcel, depending on the type of property and its size and adjusted annually for inflation, for estimated revenue of $177 million a year for 15 years?
In plain language
Measure H would create a new yearly tax on San Francisco real estate. The money would pay for Muni bus and rail service. A YES vote sets up this tax. Rates run from $129 per parcel up to $400,000 per parcel. The rate depends on the property's type and size. Rates go up each year with inflation. The tax would raise about $177 million a year for 15 years. A NO vote means this new tax does not happen.
Fiscal impact
This is a new annual parcel tax. It ranges from $129 to $400,000 per parcel, depending on property type and size. It adjusts each year for inflation. It would raise about $177 million each year for 15 years.
Impartial analysis
The Way It Is Now: The Municipal Railway (Muni) provides public transit in San Francisco, including bus, light rail, streetcar, and cable car. Muni provides over 500,000 rides per weekday. Muni service is funded by transit fares and local, state and federal sources, but not through a parcel tax. State law limits the total revenue, including tax revenue, that the City may spend each year. The voters may approve increases to this limit for up to four years. Owners of rent-controlled residential property in the City are generally limited in what costs they can pass onto their tenants. The Proposal: Starting July 1, 2027, and continuing until June 30, 2042, Proposition H would fund Muni service through a new annual parcel tax on real estate in San Francisco. The tax would be adjusted annually for inflation. The proposed 2027 tax rates would be: • Single-Family Residential Parcels: • A base tax of $129. • For buildings with more than 3,000 square feet of building area: • $0.42 per square foot between 3,001 and 5,000, and • $1.99 per square foot over 5,000. • Multifamily Residential Parcels: • A base tax of $249. • For buildings with more than 5,000 square feet of building area: • $0.195 per square foot over 5,000. • This tax is capped at $50,000 per parcel. • Non-Residential Parcels: • A base tax of $799. • For buildings with more than 5,000 square feet of building area: • $0.76 per square foot between 5,001 and 50,000, • $0.84 per square foot between 50,001 and 250,000, and • $0.99 per square foot over 250,000. • This tax is capped at $400,000 per parcel. • Mixed-Use Parcels: • A base tax of $799. • For buildings with more than 5,000 square feet of building area: • A combination of the marginal rates for residential and non-residential parcels above. • This tax is capped at $400,000 per parcel. • Parcels with No Buildings: • No base tax. • $392 for land area over 2,000 square feet. The tax would not apply to: 1. Properties or portions of properties not required to pay standard property taxes; and 2. Single Room Occupancy (SRO) units and their shared facilities such as kitchens or bathrooms. Most homeowners aged 65 or older living in their primary home would get a discount or pay no tax. Revenues from the tax would only be used for Muni service and administering the tax. In addition to the annual required audit by an independent auditor, an annual report and efficiency review would be required. This measure would increase the City’s spending limit for four years. Owners could pass up to 50% of the tax onto tenants in rent-controlled units where the rent was set before June 1, 2027, up to a maximum of $65 per unit per year. A “YES” Vote Means: If you vote “yes,” you want the City to fund Muni service through a new annual parcel tax on real estate. A “NO” Vote Means: If you vote “no,” you do not want to make these changes.
Official ballot arguments
Filed for the official voter guide by each side, printed as submitted.
Argument in favor
VOTE YES ON H FOR STRONGER MUNI. MUNI IS A LIFELINE FOR WORKERS, SENIORS, STUDENTS “Muni is essential for our seniors, many of whom don’t drive, and need Muni to get groceries, go to appointments and move independently.” – Anni Chung, Self-Help for the Elderly “Working people depend on affordable, reliable, and safe Muni every day—to get to work, take their kids to school, and keep San Francisco moving.” - Olga Miranda, President, SEIU Local 87 MUNI POWERS OUR ECONOMY. “40% of San Franciscans who work downtown take Muni. Public transit is one of the smartest investments we can make in our local economy. Without H, Muni service will be severely reduced, killing the engine of our economic recovery and causing future cuts to emergency response, parks, and other city services.” – former Controller Ben Rosenfield MORE ACCOUNTABLE MUNI. Muni eliminated 500 vacant positions, trimmed management and doubled fare inspectors. Muni customer satisfaction recently hit a 25 year high due to safer and more reliable service. MUNI FACES DEEP SERVICE CUTS. For years, one-time federal and state Covid relief kept Muni running. That money is gone. Despite strong actions to save $137 million dollars annually, without Prop H, service could be cut by 30%, at least 20 bus routes eliminated, and far worse traffic in our neighborhoods. H ONLY FUNDS MUNI SERVICE. “Strong oversight and independent audits ensures every dollar goes to safe, reliable and affordable Muni service that can never be redirected.” – Mayor Daniel Lurie San Franciscans from every corner of the city have united to vote Yes on H. The Labor Council and Chamber of Commerce. The San Francisco Apartment Association and Tenants Union. Small business owners and transit advocates. Mayor Lurie and the entire Board of Supervisors. Mayor Daniel Lurie Speaker Emerita Nancy Pelosi San Francisco Democratic Party Senator Scott Wiener Assemblymember Catherine Stefani Assemblymember Matt Haney Supervisors: Rafael Mandelman Connie Chan Steven Sherrill Danny Sauter Alan Wong Bilal Mahmood Matt Dorsey Myrna Melgar Jackie Fielder Shamann Walton Chyanne Chen Former Controller Ben Rosenfield SF Tenants Union SF Labor Council SF Chamber of Commerce SF Council of District Merchants Firefighters Local 798 Transit Workers Union 250A Teamsters Local 665 Chinatown Transportation Research and Improvement Project
Everyone wants safe, reliable Muni. The question is whether a 15-year tax with no strings attached will deliver it. The Yes campaign warns of devastating service cuts if Prop H fails. But that dodges the real question: Why guarantee SFMTA a new tax revenue stream without requiring it to meet a single efficiency or performance target? Supporters boast that Muni has eliminated vacant positions, trimmed management and found $137 million in annual savings. Great. That proves reform is possible. Prop H should require more reform, not guarantee new revenue regardless of results. They also promise “strong oversight and independent audits.” But oversight is not accountability. Prop H requires an efficiency review, but does not require SFMTA to implement its recommendations. There are no binding efficiency targets, performance benchmarks, or requirements that future tax dollars depend on results. And who pays? Prop H taxes property based on square footage, not value. A modest home can owe nearly the same tax as a far more valuable home of similar size. Renters aren’t spared, either, since landlords can pass through part of the tax. Muni is too important to keep funding the same way and hoping for different results. Before approving a 15-year tax, voters must demand binding reforms, measurable performance standards, and real accountability. Vote NO on Prop H. The San Francisco Republican Party — The San Francisco Republican Party
Argument against
San Franciscans are being asked to fund Muni’s $300 million deficit for 15 years with no strings attached. False threats. Nobody wants longer wait times or service cuts, but a new tax isn’t the only option. Nothing in this proposition requires SFMTA to cut costs, hit efficiency targets, or act on a spending review as a condition of receiving this money. No sunset tied to results. The tax runs through 2042 regardless of whether ridership, fares, or costs ever normalize. A toothless review, collected after the money’s already in hand. The measure calls for an “efficiency review,” but not until April 2028, nine months after the tax kicks in. Even then, the review only has to report its findings to SFMTA’s own board. Nothing requires the agency to act on a single recommendation, and nothing ties future funding to whether it does. A flat tax, not a fair one. The tax is based on square footage, not property value. A modest home and a far more valuable one of similar size nearby will pay nearly the same amount. Renters aren’t spared either, since landlords can pass through the tax increase to tenants. A 15-year tax with no results-based sunset, no binding reforms, and no independent check on whether the money is spent well isn’t the accountability that SFMTA needs. It’s a blank check. Vote No on H. The San Francisco Republican Party — The San Francisco Republican Party
Trump’s Federal spending cuts have devastated transportation systems across the country. Given these cuts and the loss of other funding, Muni faces 30% service cuts and the elimination of at least 20 bus routes. That’s just a fact. Mayor Lurie has taken bold action to make Muni more efficient BEFORE ever proposing H for the ballot. With new leadership, the agency eliminated 500 vacant positions, cut management, and froze non-operator hiring, saving $140 million. Muni doubled fare inspectors and reduced fare evasion by 30%. Wait times and reliability have improved, and Muni’s favorability is at an all time high. The tax isn’t flat. The San Francisco Republican Party is wrong. H is the first fair, tiered parcel tax in San Francisco history. 95% of homeowners pay the lowest amount. Large commercial buildings and mansions pay the most. 70% of the revenue comes from the city’s largest properties. Rent-controlled units are protected and won’t pay more than $65 a year. Strong oversight. H requires independent audits and mandates citizen oversight for the life of the tax. And not one penny can be spent on anything other than Muni operations. World-class public transportation requires investment. “Investing in Muni is just smart economics. The economic activity Muni generates funds emergency response, parks, and libraries.” - Former Controller Ben Rosenfield. We owe it to the next generation of San Franciscans to make sure that Muni remains the system we all love. Vote Yes on H. Mayor Daniel Lurie Rodney Fong, SF Chamber of Commerce Tony Delorio, Teamsters Local 665 Kat Siegal, Transit Advocate — Mayor Daniel Lurie; Rodney Fong, SF Chamber of Commerce; Tony Delorio, Teamsters Local 665; Kat Siegal, Transit Advocate
What supporters and opponents say — outside sources (not official ballot arguments)
Statements by campaigns, officials and news coverage, quoted with attribution and linked to the original. VoterDecoder did not write them and does not endorse either side.
Supporters say
No public statements in favor were found.
Opponents say
No public statements against were found.