City of Merced 2026 Ballot Measure Information About the Proposed One-Cent Local Sales Tax
Information About the November 3, 2026, Ballot Measure
On August 3, 2026, the Merced City Council voted to place a local sales tax measure on the November 3, 2026, ballot. The measure asks Merced voters whether to approve a one-cent local sales tax.
If approved, the measure is estimated to generate approximately $18 million annually in locally controlled revenue for City of Merced services.
This page provides factual information about the measure, including how it would work, estimated revenue, potential uses of the revenue, accountability requirements and official election documents.
Measure at a Glance
PROPOSED TAX | ESTIMATED REVENUE | DURATION | ELECTION |
|---|---|---|---|
🟦 1¢ | 🟩 Approx. $18M | 🟨 Until ended by voters | 🟪 Nov. 3, 2026 |
Per $1 taxable purchase | Estimated annually | If approved | General Election |
Sales tax does not apply to every purchase. Certain purchases, including many groceries and prescription medications, are generally exempt from sales tax under California law.
How Could the Revenue Be Used?
If approved, the measure is estimated to generate approximately $18 million annually in locally controlled General Fund revenue.
The revenue could be used to support City services and community priorities, including:
- Police and 911 emergency response
- Fire and emergency medical response
- Addressing homelessness and encampments
- Street design and repairs
- Parks maintenance and parks investment and investment in public facilities
- Youth programs and services
- Other essential City services
Because the measure would generate General Fund revenue, funding would not be legally restricted to specific programs or services.
What Merced Residents Told Us
The City has been gathering community input through Let's Talk Merced, including a statistically valid community survey and additional public outreach.
Residents identified several priorities for City services, including public safety, homelessness and encampments, streets, neighborhood quality of life, and parks.
LEARN MORE ABOUT LET'S TALK MERCED, VISIT: www.engage.cityofmerced.gov/let-s-talk-merced-join-the-community-conversation
Where Does the City's Money Come From?
Understanding the City's General Fund.
General Fund Reserves are one-time funds set aside to help the City respond to emergencies, economic downturns and unexpected costs. Using reserves allows the City to maintain current services in FY 2026-27, but using one-time funds for ongoing expenses reduces the amount available in future years.
Accountability and Transparency
If approved, the measure includes requirements intended to provide public accountability and transparency over the use of the revenue.
These include:
- Citizen oversight
- Public disclosure of spending
- Independent financial audits
- Public reporting on the use of funds
The measure would remain in effect until ended by Merced voters.
