Background
The Public Transit Revenue Measure District was created by the Legislature through Senate Bill 63 ("SB 63") in 2025, to preserve and improve public transit service in the San Francisco Bay Area. The District comprises the counties of Alameda, Contra Costa, San Mateo, and Santa Clara, and the City and County of San Francisco, and is governed by the same board that governs the Metropolitan Transportation Commission ("МТС"). SB 63 authorizes District voters to approve a retail transactions and use tax (commonly referred to as a sales tax) for specified purposes.
Propsal
If approved, Measure RTM would impose a tax of 0.5% in the counties of Alameda, Contra Costa, San Mateo, and Santa Clara and 1.0% in the City and County of San Francisco. The tax would be imposed and collected in largely the same manner as a state-imposed sales tax. The tax would be in effect for 14 years and would not count toward the statutory limit on combined local sales tax rates.
It is estimated that the tax would raise approximately $980 million per year. After payment of defined costs, including election costs and administrative expenses, the District must transfer all remaining revenues to MTC and county transportation agencies for distribution and expenditure according to percentages set forth in the measure, which vary by county and recipient. Recipients include BART, Muni, Caltrain, AC Transit, Santa Clara Valley Transportation Authority, San Francisco Bay Ferry, Golden Gate Transit, smaller bus operators in Alameda and Contra Costa Counties, and county transportation agencies. Revenues would also support free and reduced-cost transit transfers, expansion of the Clipper START reduced fare program, accessibility programs, mapping and wayfinding and transit priority projects and programs, and repavement projects for roads served by fixed-route transit.
While the tax would be imposed throughout the District, the allocation of revenue generated in each county, and the authorized uses of those funds, would vary. For example, 29.14% of all revenues generated in San Francisco County would be allocated to BART for transit operations expenses. By contrast, 62.87% of all revenues generated in San Francisco County would be allocated to the Muni for public transit expenses.
Tax revenues would be subject to accountability requirements in SB 63, which requires BART, Muni, AC Transit, and Caltrain to undergo financial efficiency reviews and adopt implementation plans and authorizes MTC to withhold funds from any of those operators for noncompliance. The measure would also require an independent oversight committee to review whether all revenues are distributed as required.
Source: Connect Bay Area Transit Initiative