Why does a new couch cost less tax in San Carlos than the same couch bought a mile north in Belmont or a mile south in Redwood City? The answer is a half-cent that San Carlos has never claimed. The two sales-tax measures on the November 3 ballot are usually discussed as one bundle, but they act on that half-cent in very different ways.
The state's rate table, effective October 1, 2026, puts San Carlos's combined sales and use tax at 9.375%. Belmont and Redwood City are both at 9.875%, and Burlingame and San Mateo are at 9.625%. If you're comparing these cities as a place to buy, that gap is one of the few carrying costs that differ across a city line. With the election less than two weeks off, it's also the one most likely to move.
Why San Carlos sits a half-cent lower
The 9.375% is the countywide floor: a 7.25% statewide base plus 2.125% in county-administered taxes. San Carlos has added nothing on top. According to the City of San Carlos FAQ on Measure G, most San Mateo County cities have their own sales tax that funds city services, and San Carlos is one of the few that doesn't. The same FAQ says that for every dollar of sales tax collected in San Carlos, only 11 cents comes back to the city.
Measure G would add that half-cent. It's a 0.5% general transactions-and-use tax, estimated to raise about $6 million a year. The ordinance filed with the county has it running from April 1, 2027 through March 31, 2041, and it passes with a simple majority. The city's page lists streets, parks, storm drains, public safety and a pedestrian-friendly downtown as examples of what the money could pay for. Because it's a general tax, the ordinance lets the money go to any lawful city purpose.
The cap the city points to
The city makes its case for timing with an argument about a ceiling. In the FAQ's words:
"Sales tax rates in San Mateo County are subject to a countywide cap of 9.875%. Because San Carlos does not currently have its own local sales tax, there is remaining capacity under that cap. If San Carlos does not use that available capacity, another public agency placing a measure on the ballot could use the remaining sales tax percentage, meaning sales tax dollars generated in San Carlos could be directed elsewhere."
That reads like a first-come, first-served claim on San Carlos's last half-cent. The regional transit tax on the same ballot is the obvious "other agency" to wonder about. It isn't competing for that space.
The half-cent the cap doesn't count
The Regional Transit Measure, called the Connect Bay Area Transit Initiative in its ordinance, would add 0.5% in San Mateo County for 14 years. According to the county's November 3 election page, it passes with a simple majority. San Mateo County's share would go to transit operations and programs, including BART, Muni and Caltrain, fare discounts and accessibility.
In March 2025, SamTrans told its board that a new regional half-cent would push half of the county's cities to a 10% rate and would need special legislation. The Legislature passed that legislation as SB 63, and subdivision (d) of the new section 67730 is direct:
"Notwithstanding Section 7251.1 of the Revenue and Taxation Code, the tax rate authorized pursuant to this section shall not be considered for purposes of the combined rate limit established by Section 7251.1 of the Revenue and Taxation Code."
So the regional tax sits on top of the cap, not under it. It can't take San Carlos's unused half-cent, and it won't fill that space if Measure G fails. Each tax would add its own 0.5% independently, and both would start collecting on April 1, 2027 if approved.
Four outcomes, and only one decides the gap
The Palo Alto Daily Post worked out the rates on October 12. Neither neighbor has a city sales tax on the ballot, so they move only with the regional measure.
| Outcome on November 3 | San Carlos | Belmont | Redwood City | San Carlos vs. neighbors |
|---|---|---|---|---|
| Neither passes | 9.375% | 9.875% | 9.875% | Half-cent lower |
| Regional only | 9.875% | 10.375% | 10.375% | Half-cent lower |
| Measure G only | 9.875% | 9.875% | 9.875% | Even |
| Both pass | 10.375% | 10.375% | 10.375% | Even |
The table shows the mechanism. The regional measure raises every city in the county by the same amount, so it changes what everyone pays without changing San Carlos's position. Measure G is the only item on the ballot that decides whether San Carlos keeps its half-cent edge over the cities on either side. The city puts the size of that edge at 5 cents on a $10 purchase. On a $2,000 appliance that's $10, before any regional increase that would apply to all three cities. Groceries and prescription medicine stay exempt either way, and the city's materials also list diapers and feminine hygiene products as exempt.
The parcel tax moves a year early
The second change shows up on the property tax bill, and it reaches homeowners before the old tax would have run out. San Carlos School District voters approved Measure N in March 2020 at $334.60 per parcel for eight years. The district's ballot resolution says it's scheduled to expire in June 2028. The district says the tax has stayed flat since it began and now pays for 25% fewer teachers than it did at the start.
Measure K would replace it. The measure text filed with the county sets $489 per parcel a year, adjusted each year by the Bay Area Consumer Price Index, for up to eight years beginning July 1, 2027. It needs a two-thirds vote. If it passes, Measure N stops being collected on July 1, 2027, a year before its scheduled end. The district describes the change as a renewal with a $154 increase.
The parcel tax works differently from the sales tax in two ways a buyer will notice.
- It's flat. The measure applies to any property that gets its own property tax bill. A condo on a separate tax bill owes the same $489 as a large hillside lot.
- It's indexed. Measure N stayed at $334.60 for its whole run. Measure K's figure would rise with the Bay Area CPI each year, so $489 is only the first year's amount.
Owner-occupants who are 65 or older as of July 1 of the tax year can apply for an exemption. So can people receiving SSI for a disability, and people receiving SSDI whose income is under the measure's limit. Parcels already exempt from Measure N carry the exemption over automatically. For a buyer, the practical point is that a parcel-tax line on a seller's current bill won't match what the next owner pays from July 2027 if K passes.
The dates that set your 2027 costs
- November 3, 2026. Election day for Measure G, the Regional Transit Measure and Measure K.
- April 1, 2027. Collection starts for whichever sales taxes pass.
- July 1, 2027. Measure K's first levy would begin, and Measure N would end.
- June 2028. Measure N's original expiration if K fails.
- March 31, 2041. Measure G's sunset unless voters extend it.
A few questions I'm hearing
If Measure G fails, could another agency use San Carlos's half-cent later? That's the city's argument for acting now. The regional transit measure isn't that agency, because SB 63 keeps it outside the cap.
Does Measure G money have to go to the projects the city lists? No. It's a general tax, and the ordinance lets the money go to any lawful city purpose. The city says it would publish independent audits and spending disclosures.
Is anything else on the ballot tied to property taxes? Measure V, the San Mateo County Community College District's $848 million bond, is on the countywide ballot at about $18 per $100,000 of assessed value. The Mercury News describes it as keeping existing bond rates in place through June 2049 rather than raising the current rate. No Sequoia Union High School District measure appears on the county's roster.
This is general information about what the measures say, not legal or tax advice, and it isn't a recommendation on how to vote. Check exemptions and your own tax bill with the county or your tax professional.
If you're weighing San Carlos against Belmont or Redwood City and want to know how the November results change your carrying costs, or how a parcel-tax change could affect a sale you're planning for 2027, call Bob at Bob Bredel - Main Site. I'll walk you through what changed and what it means for your home.
