San Luis Obispo County voters may soon decide whether to raise the local sales tax to fund transportation projects.
A proposal from the San Luis Obispo Council of Governments (SLOCOG), would add a half-cent to the county’s current 7.3% sales tax for unincorporated areas. Individual cities throughout the county have add-on taxes that bring their current, total sales taxes to 8.75%.
If approved, the measure is expected to generate about $35 million annually over 30 years.
Under the proposed plan, more than half of the revenue would go directly to cities and the county for road repairs and safety improvements. The remaining portion would fund regional projects including highway congestion relief and interchange upgrades.
James Worthley, deputy executive director of SLOCOG, said limited state and federal funding prompted the proposal.
“The federal government isn’t going to come in and help us fund our local improvements. The state government has a big deficit that they’re not going to help us,” Worthley said. “We need to be reliant on ourselves.”
Unlike some transportation tax measures, the proposal does not lock in a specific list of infrastructure projects. Instead, it allocates funding to each jurisdiction, allowing local officials to determine priorities.
“We know that there’s transportation needs across the region, and they vary,” Worthley said. “What we have is a plan that builds in local control and flexibility.”
Worthley estimates the tax would cost the average household about $100 or $150 per year, depending on spending habits.
City councils throughout the county are scheduled to vote on the proposal this month. The San Luis Obispo County Board of Supervisors is expected to review it March 24.
If the measure is placed on the November 2026 ballot, it would require support from two-thirds of voters to pass.
