FAQ
What is being proposed?
A countywide half‑cent (0.5%) sales tax to support Santa Cruz METRO bus service. The goal is to maintain current service, improve speed and reliability, and make most rides free.
How much would the tax cost?
A half‑cent sales tax adds:
5 cents on a $10 purchase
50 cents on a $100 purchase
$5 on a $1,000 purchase. Visitors also pay the tax when they spend money in the county.
It’s estimated that for every $50K in gross income you make, a half-cent tax would cost you $87.50 per year. So if you earn $100,000 you would pay $175.00 per year towards this measure.
Does the tax expire?
No. The measure does not include a sunset date. The tax would remain in place unless voters decide to change it in the future.
Why is new funding needed?
Much of the funding that expanded service in recent years came from temporary state and federal programs. Those funds are expiring now. Without replacement funding, METRO says service would need to be reduced.
What happens if the measure fails?
METRO will need to cut service by 30–40% more or less immediately.
Would bus rides really be free?
The measure allows METRO to continue or expand free and reduced‑fare programs for groups such as youth, students, seniors, people with disabilities, commuters and low‑income riders. Some institutions such as UCSC and Cabrillo may still contribute through agreements, but most people would simply board the bus without paying.
Why include free or reduced fares?
More people ride the bus when it’s free because the mental and practical barrier of needing a fare is eliminated. The bus also goes a lot faster when people don’t need to show a ticket as they get on and/or are not fumbling to pay for one. People can board on the front and rear doors of the bus as well. All this means less time spent at stops and faster, more efficient service.
Does METRO currently rely on fares?
Fares make up only a small portion of operating revenue. Most funding comes from sales taxes and state and federal programs.
Where will the money go?
Revenue must be used for METRO transit purposes described in the measure. This includes operating bus and paratransit service, maintaining and improving routes and frequency, supporting rider programs such as free youth fares, improving facilities and equipment, and making technology and service improvements.
Can the revenue be used for bonds?
Yes. The measure allows METRO to pledge revenue to bonds to finance transit improvements sooner and repay them over time. Any borrowing would require approval by the METRO Board in public meetings.
Would this tax fund rail projects?
The measure is written to fund METRO public transit services, including investments in new infrastructure and technology. It does not explicitly authorize or prevent construction of passenger rail projects. These revenues could be used for METRO to pursue new technology enabled service options if it so chooses.
Who decides how the money is spent?
The measure creates an Independent Taxpayers’ Oversight Committee and requires annual audits and reports. This committee would ensure that the revenues are being spent as voters intended. The Santa Cruz METRO Board of Directors also oversees budgets and service levels in public meetings. Board members are appointed from local elected officials in the county.
Could METRO simply cut service instead of raising taxes?
Yes. That is the alternative. Voters are being asked whether maintaining current service levels is worth the additional tax.
Why do funding problems keep appearing?
Transit agencies across the United States face similar pressures. Costs rise steadily while revenue sources such as fares and sales taxes grow more slowly and can fluctuate with the economy. Many systems have also relied on temporary funding since the pandemic, which is now expiring. Multiple Bay Area transit agencies are expected to pursue sales tax measures this year.