City Council
Report
City Council Meeting: January 27, 2026
Agenda Item: 11.B
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To: Mayor and City Council
From: Oscar Santiago, Director, Finance Department
Subject: Polling Results On Potential 2026 Parcel Tax Ballot Measure Recommended Action
Staff recommends that the City Council:
1. Adopt a finding that the report provided herein is not a “project” subject to the California Environmental Quality Act (CEQA);
2. Receive the results of a statistically reliable community survey of Santa Monica voters, conducted in October 2025, to gauge sentiment around a potential parcel tax ballot measure; and provide direction to staff on whether to continue preparations to place the measure on the November 2026 general election ballot.
Summary
This report presents key insights from a poll of registered Santa Monica voters conducted October 8–16, 2025. The survey gauged sentiment regarding a potential parcel tax ballot measure and tested alternative tax structures. Based on the findings, this report also provides suggested ballot language should Council choose to advance the measure. Additional details are provided in Attachment A.
Background
Santa Monica was long regarded as one of California’s most vibrant and fiscally sound cities, with a thriving downtown, iconic waterfront, and strong civic infrastructure. But that foundation has weakened. The COVID-19 pandemic disrupted tourism, shuttered businesses, and strained public services. Since then, the City has faced compounding challenges: rising public safety concerns, growing homelessness, high retail and office 2 of 5
vacancies, deferred maintenance, and declining public trust. Visitor traffic has dropped, events like the Palisades Fire, and policy changes from the federal government have further impacted revenue. These factors have led to a sharp decline in hotel and sales tax revenues, contributing to a previously projected General Fund deficit in FY 2026-27.
To address the growing deficit, staff continue to explore various revenue options, including adjustments to existing tax rates and new voter-approved tax measures.
Discussion
One option under consideration is adoption of a parcel tax, which under California law must be a Special Tax. Unlike ad valorem property taxes, capped by Proposition 13 at one percent of assessed value plus amounts necessary to repay voter-approved indebtedness (Cal. Const., art. XIII A, § 1), parcel taxes are not based on property value.
Instead, they are levied on a non-ad valorem basis, such as a flat amount per parcel, a charge per square foot of building area, or other parcel-related metrics.
The California Constitution expressly authorizes such special taxes when approved by a two-thirds vote of the electorate (Cal. Const., art. XIII A, § 4). Cities throughout California have lawfully adopted parcel taxes structured in this manner.
Staff estimate that a Santa Monica parcel tax could generate approximately $12 million annually. This revenue would offset the City’s current $12 million General Fund subsidy to the Santa Monica–Malibu Unified School District under the Master Facilities Joint Use Agreement (expiring in 2027), while sustaining funding for essential City services such as homelessness response, public safety, libraries, parks, and community programs.
Current Rules for approval of Local Tax Measures in California Because the viability of any tax measure depends on voter approval thresholds, it is important to understand the rules governing local tax measures sponsored by a local government in California. State law distinguishes between two types of taxes:
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General taxes: Require approval by a simple majority (50% + 1) of voters. These are taxes used for general government purposes and must be placed on the ballot during a regularly scheduled election for city or county officials.
Special taxes: Require a two-thirds (66.7%) supermajority. Special taxes are earmarked for specific purposes (e.g., parks, libraries, public safety).
Community Survey
To assess public support, the City engaged Goodwin Simon Strategic Research to conduct a statistically reliable survey of 499 randomly selected voters (English and Spanish, online and phone) between October 8–16, 2025. The poll tested two versions of a parcel tax:
1. A flat parcel tax of $540 per parcel
2. A square footage-based tax of $0.08 per square foot of parcel Key findings
• Initial support (mid-40s%), based solely on the 75-word ballot summary, fell short of the two-thirds threshold required for passage of a government-initiated ballot measure.
• Majority support (mid-50s%) emerged for both versions of the parcel tax after voters learned how funds would be used locally and not diverted to state or federal governments.
• The flat tax version earned majority support from homeowners after additional information; the square footage tax lagged by approximately 15 points.
• Voters are largely unaware of the Master Facilities Joint Use Agreement, and while they recognize the District’s funding needs, the agreement’s benefits are not top priorities.
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• Voters expressed strong support for City–District collaboration to improve services.
Recommended Next Steps
If the Council directs staff to proceed with adding the parcel tax to the November 2026 general election ballot, which requires two thirds voter approval, the following steps are advised:
• Consider a lower tax amount to improve viability
• Launch a community outreach and education campaign to build awareness and support
• Refine the ballot language to emphasize high-priority uses (firefighters, homelessness, 911 services, and teacher retention)
• Clearly state that funds will be used exclusively in Santa Monica for essential services and public education
Proposed Ballot Language
If Council decides to move forward with placing the item on the ballot, the recommended ballot language is as follows (informed by the poll results):
PRESERVING SANTA MONICA SERVICES AND PUBLIC EDUCATION
To maintain funding for homelessness, firefighters, 911 emergency services, and libraries, while preserving city funding for Santa Monica’s public schools to retain quality teachers and improve education quality, shall the measure approving a tax of $540 per parcel, generating approximately $12,000,000 annually until repealed by voters, exempting seniors, with funds that cannot be taken by the state or federal governments and can only be used in Santa Monica, be adopted?
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Environmental Review
The Polling results on a potential parcel tax ballot measure is not a “project” subject to CEQA. The report is administrative in nature and provides results on the voter poll.
Pursuant to CEQA Section 21065, the report does not meet the definition of a “project” subject to CEQA as it will not “cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” Additionally, per Section 15378(b) of the CEQA Guidelines, a “project” does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Therefore, the report is not subject to CEQA.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. The estimated cost to place a tax revenue measure on the ballot typically ranges between $42,000 – $47,000 for a single measure, depending on jurisdiction size, election type, and ballot length. If Council directs staff to move forward with the work to place the item on the November 2026 general election ballot, staff will return to Council to seek approval of the required actions.
Prepared By: Oscar Santiago, Director
Approved Forwarded to Council
Attachments:
A. Attachment A - Santa Monica Parcel Tax Survey Presentation B. Written Comments