TO: HONORABLE MAYOR FROM: Maria Öberg
AND CITY COUNCIL Jill Bourne
SUBJECT: Approval to Increase the DATE: May 18, 2026
Library Parcel Tax Rates
for Fiscal Year 2026-2027
Approved
Date:
5/26/26
COUNCIL DISTRICT: Citywide
RECOMMENDATION
Adopt a resolution to increase the Library Parcel Tax rates for Fiscal Year 2026-2027 by
2.48% over the Fiscal Year 2025-2026 rates and approve the placement of the Library Parcel Tax on the Fiscal Year 2026-2027 Santa Clara County Property Tax Roll.
SUMMARY AND OUTCOME
The proposed increase in Library Parcel Tax rates will continue to provide funding to maintain and enhance Citywide library services and facilities through the acquisition of materials, the development and delivery of educational and digital literacy programs, and the repair, equipping, and staffing of libraries.
BACKGROUND
In August 2004, the City Council adopted Resolution No. 72268 placing a Library Parcel Tax, as provided in the San José Library and Reading Protection Ordinance, on the November 2004 General Municipal Election. The Library Parcel Tax was approved by the required two-thirds vote of the electorate. The Library Parcel Tax took effect on July 1, 2005, with an expiration date of June 30, 2015.
In August 2005, the City Council adopted Resolution No. 72844 approving the placement of the Library Parcel Tax on the Fiscal Year (FY) 2005-2006 Santa Clara County Property Tax Roll. Library Parcel Tax rates for FY 2005-2006 were set at the same rates that had been charged through the Library Benefit Assessment District: $25 per single-family or condominium/townhome parcel, and varying rates for other residential, industrial, and vacant parcels.
COUNCIL AGENDA: 6/9/26
FILE: 26-677
ITEM: 2.7
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2026 -2027
In March 2014, the City Council adopted Resolution No. 76935 placing a 25-year extension of the existing Library Parcel Tax on the June 2014 Special Municipal Election ballot. The Library Parcel Tax was approved by the required two-thirds vote of the electorate. The passage of the measure extends the Library Parcel Tax for the period beginning July 1, 2015, through June 30, 2040.
Per the San José Library and Reading Protection Ordinance (Chapter 4.79 of the San José Municipal Code), commencing with FY 2006-2007 and by resolution of the City Council, the City Council may increase the Library Parcel Tax rates, if the City Council finds that the cost of living in the City of San José as shown on the Consumer Price Index (CPI) has increased over the preceding base period, but in no event shall the increase exceed 3.00%. The base period for calculating the CPI adjustment is the February-to-February reporting period. The specific CPI required to be used for the calculation is the All Urban Consumers for the San Francisco-Oakland-San José area with all items included as published by the U.S. Department of Labor, Bureau of Labor Statistics (BLS). BLS discontinued the San Francisco-Oakland-San José index in 2018.
Starting in FY 2019-2020, the Finance Department has used the BLS San Francisco- Oakland-Hayward CPI index to calculate the Library Parcel Tax cost of living adjustment as the geographical area covered by this index is comparable to San José.
The table below shows the last 10 years of annually approved percentage increases for the Library Parcel Tax per Chapter 4.79 of the Municipal Code.
Annual Increases in Library
Parcel Tax Rate
Fiscal Year
Percentage
Increase
2017-2018 3.00%
2018-2019 3.00%
2019-2020 3.00%
2020-2021 2.91%
2021-2022 1.57%
2022-2023 3.00%
2023-2024 3.00%
2024-2025 2.37%
2025-2026 2.69%
2026-2027 2.48%
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2026 -2027
ANALYSIS
Following the methodology for the CPI adjustment to the Library Parcel Tax rate, staff recommend an increase of 2.48% for FY 2026-2027. Specifically, as outlined in the table below, the CPI for All Urban Consumers for the San Francisco-Oakland-Hayward area, as published by the U.S. Department of Labor BLS, increased by 2.48% during the period from February 2025 to February 2026.
CPI February 2026 363.211
Less: CPI February 2025 354.432
Index Point Change 8.779
Divided by previous period
CPI
354.432
Percent Change 2.48%
Proposed 2026-2027 Library
Parcel Tax Rate Increase
2.48%
The proposed 2.48% increase in the Library Parcel Tax rate will increase the Library Parcel Tax for a single-family or condominium/townhome parcel from $41.11 for FY 2025-2026 to $42.12 for FY 2026-2027, reflecting an increase of $1.01 per parcel. The complete Library Parcel Tax schedule is attached to this memorandum (see Attachment– Library Parcel Tax Rates – FY 2025-2026 Actual and FY 2026-2027 Proposed Library Tax Rates). The exhibit shows the current tax schedule and the proposed tax schedule to be placed on the Santa Clara County Property Tax Roll for FY 2026-2027 for all types of parcels. Assuming the same land use classifications and number of parcels as in FY 2025-2026, the approximate tax collection for all land use classifications in FY 2026-2027 will be approximately $11.6 million, reflecting an increase of approximately $280,000 over the FY 2025-2026 collections of approximately $11.3 million.
The collection of the Library Parcel Tax for FY 2026-2027 represents the 12th year of the extended 25-year term of the Library Parcel Tax scheduled to end on June 30, 2040. Currently, the Library Parcel Tax provides approximately 16.8% of the San José Public Library System’s 2025-2026 Adopted Operating Budget and 5.7% of the San José Public Library System’s 2025-2026 Adopted Capital Budget.
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2026 -2027
EVALUATION AND FOLLOW-UP
The Library Parcel Tax is adjusted each year based on the CPI. No additional follow-up action with the City Council is expected at this time.
BUDGET REFERENCE
The 2026-2027 Proposed Operating Budget includes the estimated increase of 2.48% in revenue for Library Parcel Tax. Additional details can be found in the Library Parcel Tax Fund Statement of Source and Use of Funds on page 915 of the 2026-2027 Proposed Operating Budget.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the June 9, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
CEQA
Statutorily Exempt, File No. PP17-005, CEQA Guidelines Section 15273, Rates, Tolls, Fares, and Charges.
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2026 -2027
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
MARIA ÖBERG JILL BOURNE
Director of Finance City Librarian
For finance-related questions, please contact Maria Öberg, Director of Finance, at [email protected] or (408) 535-7011. For library-related questions, please contact Jill Bourne, City Librarian at [email protected].
ATTACHMENT:
Library Parcel Tax Rates – FY 2025-2026 Actual and FY 2026-2027 Proposed Library Tax Rates
ATTACHMENT -
LIBRARY PARCEL TAX RATES
(FY 2025-2026 Actual and FY 2026-2027 Proposed Library Tax Rates)
Land Use
Classification
FY 2025-2026
Parcel Tax Rate
Proposed FY 2026-
2027
Parcel Tax Rate
(2.48% Increase)
Single Family Parcels $41.11/Parcel $42.12/Parcel
Condominium/Townhome
Parcels
$41.11/Parcel $42.12/Parcel
Other Residential Parcels
(Fraternity, Sorority, Boarding,
Rooming House, Farm Labor
Camp)
Up to 20 Units $15.37/Unit $15.75/Unit
21 to 50 Units
$303.22 + $10.26/Unit
Greater than 20 Units
$310.74 + $10.51/Unit
Greater than 20 Units
51 to 100 Units
$616.45 + $5.12/Unit
Greater than 50 Units
$631.73 + $5.24/Unit
Greater than 50 Units
Over 100 Units
$872.99 + $2.05/Unit
Greater than 100 Units
$894.64 + $2.10/Unit
Greater than 100 Units
Multi-Family Residential
Parcels
Up to 20 Units $20.67/Unit $21.18/Unit
21 to 50 Units
$413.03 + $13.71/Unit
Greater than 20 Units
$423.27 + $14.05/Unit
Greater than 20 Units
51 to 100 Units
$825.96 + $6.85/Unit
Greater than 50 Units
$846.44 + $7.01/Unit
Greater than 50 Units
Over 100 Units
$1,169.64 + $2.73/Unit
Greater than 100 Units
$1198.64 + $2.79/Unit
Greater than 100 Units
ATTACHMENT
LIBRARY PARCEL TAX RATES (Continued)
(FY 2025-2026 Actual and FY 2026-2027 Proposed Library Tax Rates)
Land Use
Classification
FY 2025-2026
Parcel Tax Rate
Proposed FY 2026-
2027
Parcel Tax Rate
(2.48% Increase)
Commercial Parcels
Less than or equal to 0.5 acre $123.31/Acre $126.36/Acre Greater than 0.5 acre to 1.0 acre
$61.62 + $82.23/Acre
Greater than 0.50 Acre
$63.14 + $84.26/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0
acres
$102.74 + $61.62/Acre
Greater than 1.00 Acre
$105.28 + $63.14/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$349.38 + $41.10/Acre
Greater than 5.00 Acres
$358.04 + $42.11/Acre
Greater than 5.00 Acres
Greater than 10 acres
$554.96 + $10.25/Acre
Greater than 10 Acres
$568.72 + $10.50/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$20.51/Acre
$21.01/Acre
Professional Parcels
Less than or equal to 0.5 acre $184.97/Acre $189.55/Acre Greater than 0.5 acre to 1.0 acre
$92.49 + $123.31/Acre
Greater than 0.50 Acre
$94.78 + $126.36/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0 acres
$154.13 + $92.49/Acre
Greater than 1.00 Acre
$157.95 + $94.78/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$524.10 + $61.62/Acre
Greater than 5.00 Acres
$537.09 + $63.14/Acre
Greater than 5.00 Acres
Greater than 10 acres
$832.44 + $15.37/Acre
Greater than 10 Acres
$853.08 + $15.75/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$30.85/Acre
$31.62/Acre
ATTACHMENT - LIBRARY PARCEL TAX RATES (Concluded)
(FY 2025-2026 Actual and FY 2026-2027 Proposed Library Tax Rates)
Land Use
Classification
FY 2025-2026
Parcel Tax Rate
Proposed FY 2026-
2027
Parcel Tax Rate
(2.48% Increase)
Industrial Parcels
Less than or equal to 0.5 acre $61.62/Acre $63.14/Acre Greater than 0.5 acre to 1.0 acre
$30.85 + $41.10/Acre
Greater than 0.50 Acre
$31.61 + $42.11/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0 acres
$51.37 + $30.85/Acre
Greater than 1.00 Acre
$52.64 + $31.61/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$174.72 + $20.51/Acre
Greater than 5.00 Acres
$179.05 + $21.01/Acre
Greater than 5.00 Acres
Greater than 10 acres
$277.44 + $5.12/Acre
Greater than 10 Acres
$284.32 + $5.24/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$10.25/Acre
$10.50/Acre
Vacant Parcels
Less than or equal to 0.5 acre $15.36/Acre $15.74/Acre Greater than 0.5 acre to 1.0 acre
$7.68 + $10.25/Acre
Greater than 0.50 Acre
$7.87 + $10.50/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0 acres
$12.80 + $7.68/Acre
Greater than 1.00 Acre
$13.11 + $7.87/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$43.60 + $5.12/Acre
Greater than 5.00 Acres
$44.68 + $5.24/Acre
Greater than 5.00 Acres
Greater than 10 acres
$69.23 + $1.25/Acre
Greater than 10 Acres
$70.94 + $1.28/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$10.25/Acre
$10.50/Acre