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ELF Financing Strategy San Mateo County ELF Study‐2016 February 21, 2017 Prepared by Brion Economics Team Final Report 14 There can also be measures to extend existing special purpose add‐on sales taxes, such as Measure K (November 2016) in San Mateo County (see discussion below). Between 2001 and 2013, nine out of ten extensions of add‐on sales taxes passed.10 An example of a Sales Tax Add‐On is discussed below. County San Mateo Sales Tax Add‐On The County has an additional a 0.5% sales tax levy that was approved in November 2012 as Measure A. In November 2016, Measure K was approved by voters, extending the Measure A sales tax for an additional 20 years, or to 2043. The current Measure A is generating approximately $80 million per year and was originally estimated to generate $60 million per year. Measure K Ballot Language To ensure San Mateo County quality of life by retaining/improving critical facilities/services, such as: providing affordable homes for seniors, people with disabilities, veterans, families; enhancing public transit; combatting human trafficking; addressing sea level rise; maintaining safe schools and neighborhoods; high‐quality preschool and reading programs; park maintenance; and low‐income healthcare, shall San Mateo County extend the existing half‐cent sales tax, without increasing the rate, providing $85,000,000 annually for 20 years that the State cannot take away? A “yes” vote on Measure K would continue the Measure A Sales Tax within the boundaries of San Mateo County at a rate of one‐half cent for an additional twenty years, through March 31, 2043. A “no” vote on this measure would not allow the Measure A Sales Tax to be extended, and the Measure A Sales Tax would expire on March 31, 2023.11 Description of Ballot Measure In November 2012, San Mateo County voters approved Measure A, which created a one‐half cent sales and use tax (the “Measure A Sales Tax”) for a period of ten years. By its terms, Measure A Sales Tax funding is currently scheduled to expire in 2023. Under Measure K, the Board of Supervisors proposed to extend the existing retail sales and use tax imposed by Measure A for twenty years at the current tax rate of one‐half cent, meaning that the sales tax would continue until March 31, 2043. This tax would continue to be imposed on retail transactions and uses, as defined by Chapter 5.152 of the San Mateo County Ordinance Code. The County’s stated reason for extending the sales tax is to continue supporting many services and programs such as: providing affordable housing to seniors, people with disabilities, veterans, and families; developing other long‐term solutions to the affordable housing crisis; maintaining transit services for the elderly and people with disabilities; combatting human trafficking; maintaining emergency operations and 911 police, fire, and paramedic dispatch; maintaining child abuse protection programs; maintaining healthcare for low‐income children, seniors, 10 An Overview of Local Revenue Measures in California Since 2001, The California Local Government Finance Almanac. Updated March 10, 2014. http://www.californiacityfinance.com/LocalMeasuresSince01.pdf 11 https://ballotpedia.org/San_Mateo_County,_California,_Sales_Tax,_Measure_K_(November_2016) 8.C. - Page 33