{"id":2478,"date":"2026-06-18T22:08:21","date_gmt":"2026-06-18T22:08:21","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=2478"},"modified":"2026-06-18T22:08:21","modified_gmt":"2026-06-18T22:08:21","slug":"san-jose-opposes-statewide-tax-measure-as-mayor-warns-2000-people-could-be-pushed-back-onto-streets","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=2478","title":{"rendered":"San Jose opposes statewide tax measure as mayor warns 2,000 people could be pushed back onto streets"},"content":{"rendered":"
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A week after San Jose officials raised alarms over a proposed statewide ballot measure that could wipe out more than $100 million a year in local revenue, the City Council formally opposed the initiative Tuesday, with Mayor Matt Mahan warning it could force the city to shut down interim housing and put more than 2,000 people back on the street.<\/p>\n

Read more Paraguay, Turkey set for surprise World Cup survival match in Santa Clara<\/a><\/p>\n

The city is concerned over a provision in the measure that would retroactively restrict it from collecting previously approved real estate taxes by amending Proposition 13 \u2014 the landmark 1978 law that caps property taxes \u2014 to strictly block these local taxes from exceeding standard state limits.<\/p>\n

While property taxes are the measure\u2019s primary focus, the initiative goes beyond real estate taxes by extending strict two-thirds voting requirements to all future voter-led special taxes, regardless of whether they are real estate related. This would eliminate a long-standing legal exemption that has allowed citizen-backed special tax initiatives to pass with a simple majority.<\/p>\n

A general tax deposits revenue directly into a city\u2019s general fund to be spent at the local government\u2019s discretion. A special tax earmarks funds for a specific purpose. While the initiative asks voters to require a higher two-thirds threshold to pass future local special taxes, the measure itself only requires a simple majority to pass statewide.<\/p>\n

For San Jose, which just balanced its budget through deep cuts and tapping reserve funds to fill a $50.3 million deficit, losing this revenue could gut the city\u2019s most critical priorities, officials said.<\/p>\n

The mayor noted that while he agrees with the sentiment of residents who spoke out during the meeting against over taxation during a cost-of-living crisis, the sheer scale of the potential revenue hit leaves the city in a precarious financial situation. He highlighted that the potential $100 million shortfall is equivalent to funding the salaries of more than 185 police officers.<\/p>\n

\u201cI totally understand the impulse of the measure, I\u2019ve been vocal that our focus needs to be on making government better, not bigger,\u201d Mahan said Wednesday. \u201cI think you can have a legitimate argument of changing the threshold moving forward, but because it\u2019s retroactive, it would have a devastating impact on the city\u2019s budget.\u201d<\/p>\n

Meanwhile, cities across California are sounding off on the measure they say could paralyze their ability to deliver critical public services.<\/p>\n

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The League of California Cities has estimated the measure could cost local governments statewide $2 billion to $3 billion annually and notes that in the Bay Area, the funding squeeze would impact cities like San Francisco, Oakland, and San Mateo alongside San Jose.<\/p>\n

San Jose officials said the financial risk centers on two specific local revenue streams: a real estate transfer tax on properties valued above $2 million that yields $55 million to $70 million annually \u2013 funding most of the city\u2019s homelessness programs \u2013 and a separate construction and property tax that generates roughly $45 million per year to build and equip parks, libraries and fire stations.<\/p>\n

City Budget Director Jim Shannon warned that losing those streams would jeopardize neighborhood public resources.<\/p>\n

\u201cCapital support for libraries, recreational facilities, and fire stations go away,\u201d Shannon said. \u201cAnd there would presumably need to be closing some of those facilities.\u201d<\/p>\n

Read more 600-plus homes are being eyed on adjacent plots of empty San Jose land<\/a><\/p>\n

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Several councilmembers said they understood arguments for stricter tax thresholds, but opposed applying new limits to taxes voters already approved. \u00a0Much of those taxes already support homelessness, library and fire department programs.<\/p>\n

Councilmember David Cohen called the move to strip away already-approved voter funds a \u201csinister idea.\u201d<\/p>\n

\u201cIn my mind, it\u2019s not a question of changing the rules going forward. It\u2019s a question of changing the rules that we were operating under previously, and it would make it very, very challenging for jurisdictions across the state,\u201d Cohen said.<\/p>\n

In a statement, the Howard Jarvis Taxpayers Association \u2013 which is spearheading the initiative \u2013 said the measure is designed to protect property owners from excessive taxation, rejecting warnings that it would drain municipal budgets.<\/p>\n

\u201cCities will have two years to replace the revenue from these unconstitutional taxes with revenue raised in compliance with the state constitution,\u201d the association said. \u201cCities can place general taxes on the ballot for voter approval. General taxes require a simple majority vote of the electorate to pass. Or cities can propose special taxes, where the money is earmarked for specified purposes. Special taxes require the approval of two-thirds of voters.\u201d<\/p>\n

Councilmembers Bien Doan and George Casey cast the two dissenting votes, arguing that the city should prioritize protecting residents from a rising cost of living rather than shielding its own budget lines. The pair defended the measure\u2019s stricter voting thresholds as a necessary check on government power, asserting that taxpayers deserve the ultimate say at the ballot box before taking on new financial burdens.<\/p>\n

\u201cWhy is the government uncomfortable with requiring broader public consent before making more money from people who earn it?\u201d Casey said. \u201cWhy is the government asking taxpayers to trust it with fewer safeguards rather than more?\u201d<\/p>\n

But Councilmember Anthony Tordillos pointed to the city\u2019s recent contingency planning for Measure A, a local hotel tax increase that is currently maintaining a comfortable 67% approval in recent ballot returns. Tordillos noted that the potential shortfall from the hotel tax failing would have been just a fraction of the threat posed by the November ballot measure.<\/p>\n

\u201cWe were looking at about $10 million in annual revenue, and we already saw\u2026 the elimination of police patrols, closing of libraries, and other potential programs,\u201d Tordillos said. \u201cSo I would like all of us to think very carefully about what $100 million means.\u201d<\/p>\n

The measure, which qualified for the ballot in April, does not have an official title yet.<\/p>\n

Read more Should adding Kesselring affect what the Sharks do with the No. 2 pick?<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The proposed November ballot measure could threaten more than $100 million a year for city services.<\/p>\n","protected":false},"author":1,"featured_media":1954,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nSan Jose opposes statewide tax measure as mayor warns 2,000 people could be pushed back onto streets - Next City Digest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nextcitydigest.com\/?p=2478\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"San Jose opposes statewide tax measure as mayor warns 2,000 people could be pushed back onto streets - 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