Measure E, the temporary half-cent sales tax on non-essential goods is in the lead with 59.4% of the votes as of Friday at 4pm.
The countywide tax would generate revenue for county services affected by federal budget cuts, such as emergency medical services, community health clinics, food assistance and more. If passed, it would take effect April 1, 2027, and last until April 1, 2032.
The tax is expected to raise $6.75 million in the 2026-2027 fiscal year and $27 million annually thereafter, according to an impartial analysis by County Counsel Jason Heath. It is expected to raise $135 million for county services over its five-year course.
Revenue is intended to help mitigate the damage of the federal budget cutbacks resulting from H.R. 1, a federal law from last July that changes federal spending for health care and welfare programs.
The law, commonly referred to as President Trump’s One Big Beautiful Bill, is expected to create a $200 million annual loss in funding for community services such as CalFresh in Santa Cruz County.
Many local organizations expressed their support for Yes on E, including Santa Cruz Community Health, Watsonville Community Hospital Foundation, Pajaro Valley Health Care District, Community Action Board, Community Bridges and more.
CEO Anita Aguirre said Santa Cruz Community Health was an early endorser of Measure E and that the health clinic is excited about the current standings.
“We see the impact that H.R. 1 … is going to have on our safety net system, so it really felt important that local communities generate some local control over where we are helping to backfill those losses,” Aguirre said.
The organization hopes to work closely with the county to help determine local areas for investment.
Opponents of the measure criticized the tax increase, saying it is the third time since 2018 that the Board of Supervisors placed a half-cent sales tax on the ballot with broad promises.
Measure G from 2018 and Measure K from 2024 increased the sales tax in unincorporated areas, the former to fund road repairs and fire protection and the latter to address housing, homelessness and parks infrastructure. After a lawsuit in 2024, the county agreed that revenue from Measure K and the remaining Measure G revenue would be spent exclusively on services in unincorporated parts of the county.
Aptos resident Becky Steinbruner spoke against Measure E at a Pajaro Valley Health Care District board meeting on Oct. 28. She pointed out the lack of a guarantee on how the money will be spent, as generated revenue will be deposited into the county’s General Fund.
“I have heard promises and I have seen them broken over and over again,” Steinbruner said. “…This will hurt people who can least afford it.”
The measure would apply to everyone making purchases in the county—residents and tourists alike. Sales tax in Santa Cruz, Scotts Valley and Watsonville would jump from 9.75% to 10.25% if the measure passes. In unincorporated Santa Cruz, that number goes from 9.5% to 10% and in Capitola, 9.25% to 9.75%.
The tax would not apply to groceries, diapers, medications, feminine hygiene products and other essential items.
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Syd Fluker is a California Local News Fellow. Visit fellowships.journalism.berkeley.edu/cafellows.
