Preparing for Loss of Vehicle License Fees, San Mateo County Votes 3-2 to Authorize BOS to Support Legislation to Increases Local Use Tax Up To 0.5% to Meet Essential Community Needs

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VIDEO. From the San Mateo County Board of Supervisors regular meeting on Tuesday, May 5th, 2026 at 9:00am, as a hybrid meeting with remote comment. 

Agenda. Staff Report for Item #12 with resolution: “Adopt a resolution to sponsor legislation that would increase the current maximum local transactions and use tax rate by up to 0.5% to ensure adequate funding for critical local services and to meet essential community needs.”

VIDEO
Item #12 starts at 6:30:24

Legislative Proposal: Increasing the County’s Maximum Local Transactions and Use Tax Rate
Ahead of the February 20, 2026, bill introduction deadline, and at the request of Supervisor Jackie Speier, the Intergovernmental and Public Affairs (IGPA) Unit of the County Executive’s Office has been working with Assemblymember Marc Berman to develop legislation that would allow the County to increase the current maximum local transactions and use (i.e., sales) tax rate by up to 0.5%.

Given the current climate of uncertainty—particularly the County’s ongoing challenge to secure its full in-lieu Vehicle License Fee (VLF) revenue owed to the County and its 20 cities, as well as the anticipated operational and fiscal impacts resulting from the passage of House Resolution (H.R.) 1 and other federal actions—the County may wish to consider options to increase revenue to cover potential shortfalls in state and federal funding. If the Board of Supervisors chooses to pursue securing additional revenue, legislation would be needed to raise the current cap on the local transactions and use tax rate for these purposes. 

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More on VLF and Vehicle License Fees on Coastside Buzz


San Mateo County Board of Supervisors (BoS) Agendas

The Supervisors meet on the 2nd and 4th Tuesdays of the month at 9:00am, as a hybrid meeting.

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Author: mdrag

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One thought on “Preparing for Loss of Vehicle License Fees, San Mateo County Votes 3-2 to Authorize BOS to Support Legislation to Increases Local Use Tax Up To 0.5% to Meet Essential Community Needs

  1. This is me not trusting the BoS motivations. The VLF issue is small potatoes compared to the errors made in taxing biotech firms, which AI thinks could add up to HUNDREDS of Millions of dollars as they join Genentech in winning lawsuits re overpaid taxes for decades. I haven’t heard anyone being fired, so wake me up if you know, because they clearly should be. Then there are potential sexual assault lawsuits from decades ago, a refusal to reduce headcount while capitalizing on AI, the still undisclosed cost of the Sheriff debacle, etc. etc. Finally, did you – as alleged – mess up the VLF process? If so, who gets fired? If not, why do residents have to make up for a State error? Sue the state…
    So a complete disclosure of the costs of all those problems, and real oversight on what the tax proceeds could be spent on, and corrections for all the above, and a sunset for this and others taxes would all be logical for inclusion in the ballot measure – before I’d support it.

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