San Carlos Measure G Explained: The City's First Sales Tax Hike Would Raise $6 Million a Year

San Carlos has never raised its own sales tax. Measure G on the Nov. 3 ballot would change that, adding a half-cent to purchases in the city to pay for streets, parks, storm drains and emergency services.

What a yes vote does

Measure G is a half-cent general sales tax that would run for 14 years and raise an estimated $6 million a year, according to the city. That works out to 5 cents on a $10 purchase. Groceries, prescription medicine, diapers and feminine hygiene products remain exempt from sales tax. If approved, it would take effect April 1, 2027, according to the Yes on G campaign. It needs a simple majority to pass.

The city's rate is now 9.375%, the lowest in San Mateo County, and none of it is a dedicated city tax. San Carlos keeps only about 11% of current sales tax revenue, with the rest going to the county, state and other agencies, the San Mateo Daily Journal reported. Measure G would bring the rate to 9.875%, matching Belmont, Brisbane, Colma, Daly City, East Palo Alto, Half Moon Bay, Pacifica, Redwood City, San Bruno and South San Francisco.

Where the money would go

Because it is a general tax, the money is not legally tied to specific projects. The city lists priorities such as fixing potholes, maintaining parks, upgrading fire, police and paramedic services, repairing aging storm drains and sewers, and redesigning downtown with wider sidewalks and plazas. San Carlos says it maintains 87 miles of streets, 105 miles of sewer pipes and 17 parks, and has identified about $200 million in unfunded capital projects. Street repaving costs rose 62% between 2017 and 2023, the city says. The measure requires independent audits and public disclosure of spending.

How it got here

The City Council voted 4-0 in June, with Councilmember Adam Rak absent, to put the tax on the ballot. A True North Research poll for the city found about 63% of residents would probably or definitely vote yes, the Daily Journal reported.

What about the transit tax?

San Carlos voters will also see regional Measure RTM, which would add a separate half-cent in San Mateo County for BART, Caltrain and other transit. City staff told the Daily Journal the regional measure would not affect the city's own capacity to raise its tax. Voters should note that if both pass, both increases would apply at the register.