Two Cities Face Biggest Hit: Contra Costa Countywide Tax

CONTRA COSTA COUNTY, CA — Contra Costa County voters will decide in June whether to approve a new countywide sales tax to shore up healthcare and other core services amid federal funding cuts.

The Contra Costa County Board of Supervisors voted unanimously Feb. 10 to place the measure on the June 2 primary ballot. The tax requires a simple majority to pass.

If approved, the five-eighths of one cent increase— 0.625 percent — would add 62.5 cents to every $100 spent on taxable goods.

County officials estimated the tax could generate $150 million per year for five years, totaling $750 million. That money would go into the county’s general fund for general government purposes, including healthcare for residents affected by federal budget cuts.

The funding is meant to fill gaps in service funding, from public safety to homelessness programs.
Officials in Contra Costa County warned that rejecting the measure before it reaches voters could jeopardize core local services, including health care, supplemental food assistance, and operations at the county’s regional hospital and health clinics.

If approved, the increase would push most cities in the county above the local sales tax cap, with 15 of the county’s 19 cities exceeding the limit. The highest tax rate would be in El Cerrito (see table below).

Current and Projected Sales, and Use Tax Levels, by City and Unincorporated Area

Under state law, the local sales tax cap is generally set at 3.5 percentage points above the state base rate of 6 percent, for a combined total of 9.5 percent. However, certain voter-approved and transportation-related taxes are exempt.

Currently, Alameda and Albany have the highest sales tax rates in the state at 10.75%. If the Contra Costa measure passes, El Cerrito and Pinole would rise to 10.875 percent, the highest rates in both the county and the state, while Antioch would reach 10.375 percent.

Those figures do not include a potential regional transit tax planned for the November 2026 ballot, which could add another .5 percent countywide if approved.

Supporters say the revenue would remain local, would not be available to the federal government, and would be subject to annual audits and independent citizen oversight.

The primary election is June 2.