Update: Contra Costa Supervisors Voted Today On 5-Year Sales Tax Hike

CONTRA COSTA COUNTY, CA — The Contra Costa County Board of Supervisors will discuss a five-year "retail transactions and use" tax at today's meeting. The measure is slated for the June 2, 2026 election.

The proposed 0.625% tax would apply to sales of tangible personal property in both incorporated cities and unincorporated areas of the county. Revenue generated from the measure would go into the county’s general fund and could be used for any governmental purpose, rather than being earmarked for a specific program.

Under the ordinance, the tax would be administered and collected by the California Department of Tax and Fee Administration under existing state sales tax procedures. County officials say structuring the measure to mirror state law is intended to streamline collection and minimize administrative costs.

The tax would take effect on the first day of the first calendar quarter more than 110 days after voter approval — but only if state legislation exempting the measure from California’s local sales tax cap becomes law. Without that exemption, the tax cannot be implemented.

The measure includes a fiscal oversight component. An independent annual audit would review how the revenue is collected and spent, and a citizen oversight committee of at least five members — county residents or business representatives — would monitor expenditures and review audit findings.

If approved, the tax would sunset five years.

County officials also voted to increase the county’s appropriations limit to account for the additional revenue, as required under the state constitution.

The income that the tax would bring is aimed at filling a projected $239 million loss in federal and state money that would affect residents who rely on benefits from both sources.

The discussion about the funding reductions focused on public programs designed for vulnerable residents, in particular health care.

"People will lose coverage and access to care because the burden falls on the county," District 1 John Gioia said. He said senior citizens would be most heavily affected by the anticipated funding shortfalls based on the analyses.

No matter what supervisors decide to do, "We will be in a world of hurt," District 2 Supervisor Candace Andersen said, referring to the cuts.

If the proposal is accepted by supervisors, voters would ultimately decide whether to authorize the temporary sales tax increase when ballots are cast June 2.

But push-back started months ago including the Contra Costa Taxpayers Association. The association members said the county should delay the decision to give residents more time to understand the measure as it is now written.

"This is a disaster," a woman said. The county and cities do not have the funding to meet the needs of residents but another tax would be a burden on residents overall.

The temporary tax would help pay for job training, wages increases, alternative health care.

The Contra Costa Libertarian party is prepared to sue, an attorney representing the organization said. He said the language of the measure and the funding assumptions were faulty. More significantly, the board lacks legal authority to put the tax on the June 2 ballot, he said.

Andersen said the supervisors need more time to work with delegations and the leadership of the cities and towns. "I will not be supporting us moving forward," she said.

District 4 Supervisor Ken Carlson said the county can't wait out the negative impacts that have to be addressed and said he supports putting the tax on the June ballot.

District 5 Supervisor Shanelle Scales-Preston said "the longer we wait the harder it will be on us" to provide for people who depend on the county's social safety net.

Cities around the Bay Area and California are considering similar ballot measures, including Los Angeles.

District 3 Supervisor Diane Burgis said she understands the reservations but that waiting would make conditions worse.

Supervisors voted 4-1 to approve.

The meeting adjourned at 12 p.m. and scheduled to return at 1 p.m. for more public comments.

Meeting: 9 a.m. at the Contra Costa County Administration Building, 1025 Escobar St., Martinez, and online.