San Pablo Voters Approve Measure R Half-Cent Sales Tax With 71% Vote

Nearly 71% of voters in San Pablo have approved Measure R, enacting a 5-year half-cent sales tax increase starting in April 2027 to sustain general municipal services and offset slowing revenue growth from the San Pablo Lytton Casino, according to Friday's election count reported by Richmond Confidential reporter Ramon Castaños.

Under the ballot measure's two-stage schedule, the half-cent (0.5%) sales tax will remain in effect for 5 years beginning in April 2027 before stepping down to a quarter-cent (0.25%) in 2032 and continuing at that lower rate for 5 additional years through 2037.

Rate Transition With 2020's Measure S

San Pablo's current baseline sales tax rate is 9.5%, with sales tax revenue funding approximately 10% of the overall city budget while the majority of collections go to the state, City Manager Matt Rodriguez said. The local tax applies to retail goods, dining, and gasoline, while exempting groceries, prescriptions, and rent.

"The voting results on Measure R demonstrate that local voters in San Pablo understand the importance of funding existing municipal services and maintaining their quality of life," Rodriguez said Wednesday.

San Pablo residents have been paying an existing half-cent sales tax since voters approved Measure S in 2020. Because Measure S is scheduled to step down from a half-cent to a quarter-cent in October—a reduction that Rodriguez noted in a May budget presentation would otherwise reduce annual city revenue by approximately $1 million—the two measures will briefly overlap at their full rates:

• April to October Transition Window: Consumers will pay a combined 10% sales tax rate while both Measure R and Measure S are simultaneously in full effect.
• Post-October Rate: Once Measure S steps down to a quarter-cent in October, San Pablo's combined local sales tax rate will settle at 9.75%.

Reducing Dependence on San Pablo Lytton Casino Revenue

According to Rodriguez's May budget presentation, Measure R was placed on the ballot to close a structural budget gap driven by rising municipal operating costs and to reduce the city's heavy reliance on business license taxes paid by the San Pablo Lytton Casino.

"The casino accounts for 59% of our general fund revenue each year," Rodriguez said. "Most cities don't have that level of dependence on a single source."

While San Pablo previously received rapid annual growth from casino business license taxes, that revenue stream has slowed to approximately 0.5% (half of 1%) annually since 2022. Because municipal operating costs have risen faster than that 0.5% annual growth rate, the city faced a combined budget deficit of approximately $2 million across the current and upcoming fiscal years, which San Pablo has bridged using municipal reserves. Proceeds from Measure R will support general fund programs including a daily senior meal program, housing and homelessness assistance, and neighborhood safety services.