Learn About Berkeley · Reference

Tax types, who approves them, and how the rates get set each year

The categories on a Berkeley property-tax bill, what the City Council can and cannot do with each, and the two engines the Finance Director runs every June.

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1. The categories

Grouped by who levies the charge. "Approval" is the vote needed to create or raise it. "Spending authority" is how tightly the money is tied down once collected.

CategoryBased onApprovalCouncil spending authorityBerkeley examples
City of Berkeley levies
General taxVaries (sales, transfers, utility use, gross receipts)Majority
general election only
Unrestricted — General Fund. Ballot "purpose" language is advisory only.UUT, transfer tax (Measure P), business license, TOT, soda tax, TNC tax, 2026 sales-tax proposal
Special tax (parcel tax)Per sq ft or per parcel — not value2/3Restricted to stated purpose; dedicated fund; annual escalator set by ordinance.Library, Parks, Measure GG, FF 2020, Paramedic, Measure E, Safe Streets FF 2024, Measure X
GO bond levy% of assessed value, above the 1% cap2/3Only debt service on the bond; proceeds limited to ballot project list; citizens' oversight.T1, Measure O, Measure M, G/S/I refunding, 2008 FF library
Mello-Roos (CFD)Special tax on parcels inside a district, usually to service district bonds2/3
of district voters or landowners
Restricted to district facilities/services. No benefit-proportionality test.None citywide; EBRPD CFD line on the bill is the regional case
Benefit assessmentParcel's share of measured special benefit (engineer's report)Owner ballot
weighted protest, Prop 218
Restricted to the district's improvements/services.Street lighting districts 1982-1 and 2018; Downtown, Telegraph, Elmwood BIDs
Fee / property-related chargeCost of service — cannot exceed cost (Prop 26)Council
after majority-protest hearing
Enterprise or dedicated fund; cost recovery only.Sewer, refuse, clean stormwater, marina, parking
Levied by other governments on the same bill (city has no control)
Base 1% levyAssessed value (Prop 13; grows ≤2%/yr until sale)ConstitutionalCity's share (roughly a third of the 1%) is unrestricted General Fund. Rest goes to county, schools, districts by AB 8 formula.Berkeley TRA 13-000
School bonds & parcel taxesAV (bonds) or per sq ft (parcel)55% bonds
2/3 parcel taxes
BUSD board only; restricted to measure purpose.BSEP (Measure H 2024), BERRA, school safety, BUSD GO bonds
Special districtsAV bonds, parcel charges, flat feesEach district's own voters/boardEach board spends its own revenue; council has no say.EBMUD, AC Transit, BART, Peralta, EBRPD, mosquito/vector, county GO bond
Exception to watch: since the Upland line of cases, a special tax placed on the ballot by citizen petition (not by council) may pass with a simple majority. Berkeley has: the 2024 Safe Streets tax (Measure FF) was a citizen-initiative special parcel tax that passed with 60.8%, and Measures Y (arts) and Z (public bank) on the November 2026 ballot take the same route.

2. How the Finance Director sets 14 rates every June

Two different engines, both submitted under the Finance Director's name, all adopted on the consent calendar. Figures shown are from the FY2027 staff reports (June 16 and June 30, 2026).

Engine 1 — the 8 per-square-foot parcel taxes (escalator)
1. Pull two indicesCalifornia per-capita personal income growth (Dept. of Finance, May) and San Francisco Bay Area April CPI.
FY27: 4.950% vs 3.7975%
→
2. Take the greaterVoters authorized "the greater of." Council may choose the lower figure or no increase; it never has.
→ 4.950%
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3. Multiply last year's rateCompounds on the prior-year rate, not the original ballot base.
Library: 29.80¢ × 1.0495 = 31.28¢
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4. Write the reportShow the cost on a 1,900 sq ft "average" home; state revenue forgone if CPI-only or no increase.
Library: −$324K / −$1.39M
Engine 2 — the 5 ad valorem GO bond levies (debt-service solve)
1. Sum debt dueMarch 1 + September 1 payments on every series, including any new issue planned for the year.
T1: Series A + B + new 2026 C
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2. Add cushion, subtract surplusPlus a 5% delinquency reserve, minus whatever is left in the bond fund from over-collection.
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3. Divide by estimated AVSecured + unsecured + utility rolls. County finals arrive in August, so preliminary values are used.
T1: $4.4M ÷ AV ≈ 0.0140%
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4. Check the capCombined GO rate held at or under 0.0492% (T1 policy). Any over-collection is credited against the next year's levy.
FY27 combined: 0.0490%
Both engines converge
14 ordinances on one consent calendar (8,013–8,026-N.S. in FY27: eight per-square-foot special taxes, the large-nonprofit business-license charge, and five bond levies) — First reading mid-June, second reading two weeks later, all ayes, no discussion. The reports are boilerplate: the FY27 Library report still reads "FY 2026 tax of $0.3128," and the Measure M ordinance title says FY 2026.
→
Rates to the Alameda County AuditorPer-square-foot amounts go as direct charges by parcel; bond percentages join the composite rate for TRA 13-000. Bills mailed in October.
Calendar
MayApril CPI and DOF income factor published
Early JuneStaff reports posted; budget adoption in the same window
Mid-JuneFirst reading (FY27: June 16)
Late JuneSecond reading, adopted (FY27: June 30)
~Aug 10Rates and direct charges filed with the county
Oct → Dec 10 / Apr 10Bills mailed; installments due
Why it matters: the parcel-tax stack on an 1,800 sq ft home is about $2,000 a year, and Engine 1 compounds it at roughly 5% annually — about $100 more each year with no vote and no debate. The bond levies, by contrast, fall as principal retires (2008 library bonds went from 0.0040% to 0.0035% this year) unless new series are issued.

3. Acronym map

Every abbreviation used above, plus the ones that show up on the county bill.

TermMeaningWhere it shows up
Legal framework
Prop 131978 constitutional amendment: 1% cap on ad valorem tax, assessed value grows ≤2%/yr until sale, 2/3 vote for special taxesBase 1% levy; why parcel taxes are per sq ft
Prop 2181996 "Right to Vote on Taxes" Act: majority for general taxes, 2/3 for special taxes, owner ballots for assessments, protest hearings for property-related feesApproval column
Prop 262010: anything not a fee tied to cost of service is a tax and needs a voteFee / property-related charge row
Prop 392000: school GO bonds pass at 55% instead of 2/3BUSD bonds
AB 81979 statute allocating the 1% levy among county, cities, schools, and districtsCity's share of the 1%
UplandCal. Cannabis Coalition v. City of Upland (2017) and successors: citizen-initiative special taxes may pass by majorityException flag
BMCBerkeley Municipal Code (Title 7 = taxes)Each parcel tax's escalator language
Tax mechanics
Ad valorem"According to value" — a tax computed as a % of assessed value1% levy; all GO bond levies
AVAssessed value (Prop 13 basis, not market value)Bond rate denominator
GO bondGeneral obligation bond — repaid by an ad valorem levy pledged with the city's full taxing powerT1, O, M, G/S/I, 2008 FF
CFD / Mello-RoosCommunity Facilities District under the Mello-Roos Act of 1982 — a special tax district, usually bond-backedEBRPD CFD line
BIDBusiness improvement district — a benefit assessment on commercial parcelsDowntown, Telegraph, Elmwood
TRATax rate area — county code for a parcel's unique stack of overlapping jurisdictions (Berkeley core = 13-000)Composite rate on the bill
CPIConsumer Price Index (SF-Oakland-Hayward, April reading)Escalator option A
DOF / PIGCalifornia Dept. of Finance per-capita personal income growth factorEscalator option B (usually the larger)
Direct chargeA flat or per-sq-ft amount added to a parcel's bill outside the ad valorem rateAll 8 parcel taxes; stormwater; lighting
Secured / unsecured / utility rollThe three county assessment rolls: real property, personal/business property, state-assessed utilitiesAV base for bond rates
City of Berkeley measures
Measure X (2024)Library Relief Act of 2024 — additive library parcel tax6.297¢/sf
Measure AA (2024)Four-year spending reauthorization for the 1980 Library tax (through FY28)Library tax
Measure GG (2008)Fire protection and emergency response parcel tax7.026¢/sf dwelling
Measure FF (2020)Firefighting, EMS and wildfire prevention parcel tax13.633¢/sf
Measure FF (2024)SAFE STREETS — street, sidewalk and traffic-safety parcel tax (same letter, different measure)17.842¢/sf dwelling
Measure FF (2008)Branch library improvements GO bond (a third FF)0.0035% AV
Measure E (1980s)Emergency services for the severely disabled parcel tax2.339¢/sf
Measures F & YParks, trees and landscaping tax (F = original; Y 2024 = rate increase)27.83¢/sf
Paramedic taxEmergency medical services parcel tax4.92¢/sf
Measure T1 (2016)$100M infrastructure and facilities GO bond0.0140% AV
Measure O (2018)$135M affordable housing GO bond0.0200% AV
Measure M (2012)$30M streets and watershed GO bond0.0040% AV
Measures G/S/I1992/1996/2002 GO bonds, consolidated in the 2015 refunding0.0075% AV
Measure P (2018)Transfer-tax increase on sales over $1.5M; homeless-services purpose is advisoryGeneral tax example
Measure U1 (2016)Business license tax increase on landlords of 5+ units; housing purpose advisoryGeneral tax
UUTUtility users taxGeneral tax
TOTTransient occupancy (hotel) taxGeneral tax
TNC taxTransportation network company (Uber/Lyft) per-trip user taxGeneral tax
Other jurisdictions on the bill
BUSDBerkeley Unified School DistrictSchool bonds and parcel taxes
BSEPBerkeley Schools Excellence Program — BUSD's main parcel tax (Measure H 2024)$0.54/sf
BERRABerkeley Educator Recruitment and Retention Act (BUSD Measure E 2020)14.51¢/sf
EBMUDEast Bay Municipal Utility District (water and wastewater)Regional flat charges
EBRPDEast Bay Regional Park DistrictAV bond + CFD charge
BARTBay Area Rapid Transit DistrictAV bond
AC TransitAlameda-Contra Costa Transit DistrictFlat parcel charge (Measure VV)
PeraltaPeralta Community College DistrictAV bond + flat parcel charge
CSACounty service area (e.g., paramedic CSA charge)Flat charge
Sales-tax measures (not on the property bill; Berkeley's rate is 10.25% — the county base with no city add-on)
Measure W (2020)Alameda County ½-cent general sales tax, 10 years. Passed 50.1%; litigated over whether 2/3 applied; upheld 2024. ~$810M accrued through June 2025; Board directed 80% to a homelessness "Home Together" fund, 20% to essential services. Berkeley receives allocations through county programs, not directly.General tax (county); FY26 allocation $168.9M
Measure BB (2014)Alameda County Transportation Commission 1-cent sales tax (extends/raises 2000 Measure B) for transit, streets, bike/ped; 30 yearsSpecial tax; Berkeley's local-streets share is restricted
Measure A (2004)Alameda County ½-cent essential health services tax, extended by Measure AA (2014)Special tax; Highland/ACMC and clinics
2026 Berkeley sales taxProposed city general sales-tax increase for the November 2026 ballotMajority vote; General Fund (see Tax-Increase Estimator)