Santa Cruz County voters to decide on Measure E sales tax

Santa Cruz County voters will decide on Measure E, a proposed temporary half-cent sales tax on non-essential goods, in the upcoming election. The measure aims to address fiscal distress caused by anticipated federal budget reductions.

If passed, the tax would take effect on April 1, 2027, and run until April 1, 2032. An analysis by County Counsel Jason Heath suggests the tax could raise $6.75 million in the 2026-27 fiscal year and approximately $27 million annually thereafter, totaling an estimated $135 million over its duration. The tax excludes essential items such as groceries and prescriptions.

Proponents, including Cabrillo College Trustee Adam Spickler, state the measure is a response to the H.R. 1 legislation, which is expected to result in a $200 million annual loss in funding for local community services. The County Board of Supervisors intends to prioritize these funds for emergency medical services, community health clinics, food assistance like CalFresh, mental health and substance use treatment, and reproductive healthcare access.