Temporary Santa Clara County Sales Tax Increase
The Question:
To help our community address severe federal cuts enacted by the President and Congress; support critical local services such as trauma, emergency room, mental health, and public safety; and reduce the risk of hospital closures at Santa Clara Valley Healthcare and other service cuts—
Shall the County of Santa Clara adopt a five-eighths cent (0.625%) general sales tax for 5 years, providing $330 million annually that is not available to the federal government and is subject to independent audits/oversight?
Note: The measure needs a simple majority (50%+1) to pass.
Background:
The current sales tax paid county-wide in Santa Clara County is:
- 9.125 cents/dollar Total (plus any city sales tax)
- 7.250 cents/dollar to the State of California
- 1.750 cents/dollar to CalTrain and Valley Transportation Authority
- 0.125 cent/dollar to Santa Clara County
The result of the proposed sales tax change from April 1, 2026 until April 1, 2031 would be:
- 9.750 cents/dollar Total (plus any city sales tax)
- still 7.250 cents/dollar to the State of California
- still 1.750 cents/dollar to CalTrain and Valley Transportation Authority
- 0.750 cent/dollar to Santa Clara County (still less than 1 cent per dollar)
In July 2025, U.S. budget bill H.R.1 was passed and signed into law. It includes more than $1 Trillion in cuts to funding to the states for programs for Medicaid (known in California as Medi-Cal) and food assistance. Medicaid provides health care access for one in five Americans and nearly half of all children in the United States.
Santa Clara County receives more than $2.3 billion a year in funding from the federal Medicaid program – representing the largest single source of federal funding to the County each year. The H.R.1 cuts have a significant negative impact on Santa Clara County.
Santa Clara County operates the second largest public hospital system in California. The greatest part of its funding to keep those hospitals running comes from the federal government through Medicaid and Medicare, with Medicaid providing the biggest chunk - more than $2.3 billions per year. Without another way to immediately raise money, these cuts in federal funding put critical County health care and safety-net services at immediate risk.
On August 7, 2025, in response to the impacts posed by H.R.1, the Santa Clara County Board of Supervisors held a special meeting to examine ways to deal with this funding issue. Since a special election was already scheduled for November 4, 2025 because of the retirement of the County Assessor, the Supervisors voted unanimously to place on the ballot for consideration by the County's voters a small temporary, five-year, sales tax increase.
Read the Impartial Analysis