San Mateo County Businesses Face Potential Property Tax Hikes from June School Ballot Measures

REDWOOD CITY, CA – Business owners and property holders in several San Mateo County school districts will decide on a series of new bond and parcel tax measures during the June 2, 2026, statewide primary election. The proposals, which seek to fund facility upgrades, teacher salaries, and academic programs, could lead to significant increases in local property tax bills if approved by voters. The measures represent the latest effort by local educational agencies to secure dedicated funding streams outside of traditional state and federal sources. Among the proposals is Measure C from the Redwood City Elementary School District, which asks voters to approve a new parcel tax to support its educational goals. If passed, the measure would levy a tax for eight years, starting July 1, 2026. For business owners in San Mateo County and beyond, these local ballot measures represent more than just civic engagement—they are a direct line item on future budgets. We often see clients surprised by the cumulative impact of parcel taxes and bond levies, especially those operating under triple-net leases where all property tax increases are passed directly to the tenant. An increase of several hundred or even thousands of dollars per year per parcel can significantly impact cash flow, particularly for businesses with multiple locations or large facilities. It is crucial for companies to proactively model these potential cost increases into their financial forecasts rather than reacting after the tax bills arrive. This kind of forward-looking financial planning is a core part of our tax preparation and compliance services. Business owners who need to understand and prepare for these changes can contact C&S Finance Group LLC at csfinancegroup.com for strategic guidance. The Redwood City School District's Measure C proposes a tax of 17.5 cents per building square foot annually on improved parcels and a flat $25 per year on unimproved parcels. District officials estimate the tax would generate approximately $12.2 million each year until it expires on June 30, 2034. The measure has garnered support from community groups, including the League of Women Voters of South San Mateo County, which cited the need for sustainable, long-term funding for schools. In another part of the county, the Palo Alto Unified School District is also placing a parcel tax measure on the June ballot. The district has benefited from a similar tax since 2001, with the current rate set at $904.92 per parcel, generating about $16.5 million annually. According to reporting from the Palo Alto Daily Post, the funds are typically used for staffing, compensation, and other student-focused programs. The push for the new tax comes as the district negotiates union proposals that include significant salary increases of 28% for teachers and 47% for non-teaching staff. However, the Palo Alto measure has faced some local opposition. Former school board member Todd Collins argued that the district no longer requires the parcel tax, pointing out that recent increases in traditional property tax revenue have outpaced the funds generated by the special levy. He urged the board to act as responsible financial stewards with existing taxpayer money. The trend of school districts seeking direct funding from voters extends beyond San Mateo County, reflecting a statewide pattern. According to data from Ballotpedia, numerous other California districts have placed similar measures on the June 2026 ballot. For instance, the Oakley Union Elementary School District is asking voters to authorize $59 million in bonds, which would be repaid through a property tax levy of about $28 per $100,000 of assessed value. Similarly, the Moraga School District is proposing a $295 annual parcel tax for seven years to fund teacher retention and academic programs. These bond measures differ from parcel taxes in their structure. While parcel taxes are typically a flat fee or a rate based on square footage, bond measures allow the district to borrow a large sum for capital projects and repay it over time through an increase in the property tax rate based on a property's assessed value. According to the San Mateo County Assessor-County Clerk-Recorder & Elections office, the official documents for these measures, including impartial analyses and arguments for and against, were made available for a 10-day public review period. All registered voters in the county will receive a vote-by-mail ballot in May 2026 ahead of the June 2 election. In-person voting will also be available at designated Vote Centers starting in early May. With ballots set to be mailed in the coming weeks, the focus will now shift to the campaigns surrounding these measures. Local business groups, homeowner associations, and parent organizations are expected to weigh in, shaping a debate that will determine the fiscal landscape for these communities and the operating costs for businesses within them for years to come.