Should Berkeley voters approve Measure V? (November 3, 2026 ballot)

What's this about?

People disagree about whether Berkeley voters should pass Measure V on November 3, 2026.

The plan would add 0.5 points to the city sales tax for good.

What supporters say

• The tax would give city leaders more money they could use where needs change.
• That money could help keep fire crews, police, 911 help, and other key city work.
• The tax would add about 50 cents to a $100 taxed sale, before some sales get left out.

What critics say

• The plan does not promise that new money will pay for any named city service.
• Higher prices could lead some people to shop outside Berkeley.
• Sales taxes can hurt low-income families more because they spend more of their pay.
• Tax money from sales could drop when the economy gets weak.

How to read this

The number of points on each side does not show who is right; the strength of the proof matters more.

Berkeley voters will decide on Nov. 3, 2026, whether to approve Measure V, a permanent 0.5-percentage-point increase in the city’s sales tax. The measure would raise money for city government, but it would also leave voters weighing higher consumer costs against flexibility to protect public services.

The case for

The strongest argument for Measure V is that it could give Berkeley a meaningful new source of money as the city faces reported budget pressures. The official estimate puts annual revenue at $9 million to $10 million, while local reporting has described a structural deficit approaching $30 million and possible reductions to public services. Those cuts would depend on later budget decisions, however, rather than automatically follow from rejecting the measure. 1

Because the money would go into the General Fund, city officials could use it for fire protection, police, 911 dispatch and other lawful municipal purposes. That flexibility could help the city respond to changing needs instead of locking the money into one program. The measure also keeps an independent annual audit requirement, providing a formal check on financial reporting and compliance. 2

The tax itself would be relatively small on an individual purchase: 50 cents on a $100 taxable transaction, before exemptions and any response by sellers. Supporters argue that small charges spread across Berkeley’s taxable sales could add up to a substantial contribution to the city budget. 3

Still, Measure V would be only a partial fix. The projected $9 million to $10 million is well below the roughly $30 million deficit described in local reporting. Approval could ease budget pressure, but it would not eliminate the city’s remaining imbalance.

The case against

The main objection is that sales taxes generally take a larger share of income from lower-income households. People with less disposable income often spend more of what they earn on taxable goods, making a broad consumption tax more burdensome for them. California tax-incidence comparisons show this pattern, though Berkeley-specific estimates of the measure’s effect are not available (see Figure 1). 4

Measure V also does not guarantee that the new money will preserve the services named in the public debate. Its legal language sends the revenue to the General Fund for any valid municipal purpose. Fire, police, dispatch, youth, senior and community services are possible uses—not programs protected by a required spending formula or minimum funding level. An annual audit can review the city’s finances, but it cannot force officials to spend the money on those particular services. 5

There are also questions about reliability. Research on local governments has linked new sales taxes to greater short-term revenue swings, suggesting that collections could weaken during an economic downturn—possibly when the city most needs money. That research supports caution, but it is not a precise forecast for Berkeley. 6

Higher local prices could also affect shopping behavior. Studies of Berkeley and Oakland beverage taxes have found effects on prices, sales or cross-border shopping. But those taxes cover narrower products, so they cannot show how much a general Berkeley sales tax would shift purchases to other cities or online retailers. The measure’s revenue estimate is therefore a forecast, not a guarantee, and depends on taxable sales, the economy, retail patterns and online shopping.