Measure B 06/02/26 - Full Text

Sonoma-Marin Area Rail Transit District Measure

The people of the Sonoma-Marin Area Rail Transit District do ordain as follows:

Section 1. Title.

This Act shall be known as “The Safe, Modern, and Accessible Rail and Transit Initiative” (“The SMART Initiative”).

Section 2. Findings and Declarations.

The people of the Sonoma-Marin Area Rail Transit District hereby find and declare the following:

Sonoma-Marin Area Rail Transit (SMART) provides a safe, reliable and congestion-free transportation option for Marin and Sonoma counties, thereby improving the quality of life for North Bay residents. SMART’s financial viability is critical to our region and our way of life.
In 2008, voters approved Measure Q to provide the initial funding and public mandate necessary for SMART to construct and operate a passenger rail system and bicycle-pedestrian pathway, addressing critical unmet needs for infrastructure, mobility, and regional connectivity in Marin and Sonoma Counties.
For 17 years, Measure Q has been a vital resource for our community, enabling SMART to leverage these local funds to secure $735 million in outside grants, to date. This support has allowed SMART to build and operate a new passenger rail and pathway system that spans Larkspur, in Marin County, to Windsor, in Sonoma County, connecting the North Bay regions, reducing congestion and benefitting the environment by reducing the number of cars on local highways.
SMART has made impressive strides by successfully securing grants for rail enhancement projects such as extending the rail and pathway system, constructing new rail stations, upgrading railroad safety systems, and conducting project development on the East/West corridor.
As envisioned in the Measure Q expenditure plan, SMART has leveraged the retail sales tax to obtain grants that have more than doubled the community’s investment in the transportation infrastructure across the two counties.
With a track record of over 1.1 million passengers and 146,000 bicycles transported in 2025 alone, SMART service is proving itself essential. Currently, SMART carries over 100,000 rail passengers and serves 100,000 pathway trips monthly. As of 2025, SMART is offering more service, and fares are more budget-friendly, than ever. Record-high ridership reflects SMART’s success, having achieved the highest post-pandemic ridership recovery rate of any transit system in the Bay Area.
With the opening of Petaluma North and Windsor Stations, SMART anticipates even greater ridership growth in the future and is actively planning to extend service to Healdsburg and ultimately Cloverdale. To complete these extensions, pathway connections and maintenance projects on the existing system, SMART plans to use measure funds and matching grants to build an estimated $510 million in capital construction and state of good repair projects.
To provide the funding necessary to operate and maintain the existing passenger rail and pathway system, SMART requires the extension of the retail sales tax.
The measure would not change the ¼ of one cent rate people pay today, but it would extend the sales tax past its current expiration date.
If the voters approve this measure, approximately $51 million will be collected annually to enhance our community’s transportation infrastructure.
This crucial funding will provide SMART with the necessary resources to continue to operate and maintain the existing SMART system, complete essential expansion projects, and support the development of future rail and pathway extensions.
Extending the existing sales tax measure will enable SMART to help achieve community goals, such as relieving traffic congestion, lowering greenhouse gas emissions, creating economic opportunities, and providing transportation options.
Extension of this sales tax will continue the momentum for a better-connected future in Marin and Sonoma Counties, offering convenient rail connections to ferry, bus, and regional transit services across the North Bay by providing a passenger rail and bicycle/pedestrian pathway system linking 17 stations across both counties.
All funds will be invested in environmentally responsible transportation solutions within Marin and Sonoma Counties, driving economic growth and generating local jobs.
All sales tax revenues from this measure will be managed by local officials on the Sonoma-Marin Area Rail Transit District Board of Directors and cannot be taken away by State or federal action.
Local control of revenues and accountability to citizens are essential for our community’s success. The measure ensures transparency, protects the public’s investment in SMART, and includes vital safeguards to uphold the community’s transportation priorities. Local officials, who understand our community’s needs best, will make informed decisions with valuable input from the public and a dedicated Citizen’s Oversight Committee.
Continued financial support from the community is essential; it empowers SMART to maximize its current local ¼ of one cent sales tax to access additional funding sources that would otherwise be unavailable to the region.

Section 3. Purpose and Intent.

It is the people of the Sonoma-Marin Area Rail Transit District’s intent to do all of the following with The Safe, Modern, and Accessible Rail and Transit Initiative:

Without raising taxes, extend the existing retail transactions and use tax at the same rate of one-quarter of one cent (¼-cent) to:

Continue providing a clean and safe regional rail and pathway system and offer accessible, convenient, and affordable transportation for all including seniors, students, essential workers, and low-income households.
Leverage local funding to secure federal, state, regional, and local grants.
Complete planned rail and pathway expansion and continue extending the rail and pathway system while working toward corridor preservation and project development of East/West rail alignment.
Continue to build upon record ridership and pathway use by serving millions of rail and pathway trips annually.
Relieve traffic congestion, improve travel time and reliability, reduce greenhouse gas emissions, and provide an alternative to sitting in traffic while effectively decreasing vehicle miles traveled and transportation emissions.
Maintain and modernize SMART’s infrastructure to ensure the system remains safe and serviceable and meets the needs of the community.
Provide accountability and protect taxpayers with strict accountability measures through a Citizen’s Oversight Committee and independent audits, to protect the public’s investments and ensure funds are spent as intended by voters.
Guarantee that the measure’s funding goes directly to Sonoma-Marin Area Rail Transit District’s priorities.

Section 4. Definitions.

For purposes of this chapter, the following definitions shall apply:

“Act” means “The Safe, Modern, and Accessible Rail and Transit Initiative”.
“Board” or “Board of Directors” means the Sonoma-Marin Area Rail Transit District Board of Directors.
“Citizen’s Oversight Committee” means the Citizen’s Oversight Committee established by the Board pursuant to Section 20 of this Act.
“District” or “SMART” means the Sonoma-Marin Area Rail Transit District.
“Fund” means the SMART Initiative Fund.
“Operative Date” means April 1, 2029.

Section 5. Purpose.

This Act shall be applicable in the incorporated and unincorporated territory of the Counties of Sonoma and Marin.

This Act is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, and Section 105115 of the Public Utilities Code which authorizes the District to adopt this tax ordinance, which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

Section 6. Contract With State.

Prior to the operative date, the District shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the District shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

Section 7. Transactions Tax Rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of the District at the rate of one quarter of one percent (0.25%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

Section 8. Place Of Sale.

For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

Section 9. Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the District of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one quarter of one percent (0.25%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

Section 10. Adoption Of Provisions Of State Law.

Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

Section 11. Limitations On Adoption Of State Law And Collection Of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

Wherever the State of California is named or referred to as the taxing agency, the name of this District shall be substituted therefor. However, the substitution shall not be made when:

The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;
The result of that substitution would require action to be taken by or against this District or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.
In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:

Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

The word “District” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

“A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

Section 12. Permit Not Required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.

Section 13. Exemptions And Exclusions.

There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
There are exempted from the computation of the amount of transactions tax the gross receipts from:

Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the District in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
Sales of property to be used outside the District which is shipped to a point outside the District, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the District shall be satisfied:

With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-District address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
With respect to commercial vehicles, by registration to a place of business out-of-District and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.
For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this District of tangible personal property:

The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.
For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
Except as provided in subparagraph (7), a retailer engaged in business in the District shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the District or participates within the District in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the district or through any representative, agent, canvasser, solicitor, subsidiary, or person in the District under the authority of the retailer.
“A retailer engaged in business in the District” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the District.

Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

Section 14. Amendments.

All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

Section 15. Enjoining Collection Forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the District, or against any officer of the State or the District, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

Section 16. The SMART Initiative Fund

There is hereby established in the treasury of the District a special fund called the SMART Initiative Fund, which shall be maintained by the District.

Section 17. Receipt of Proceeds

All revenue generated by this Act shall be deposited into the SMART Initiative Fund The uses and expenditures of money allocated to the SMART Initiative Fund shall be governed by and subject to the requirements set forth in Section 19.

Section 18. Use of Proceeds

Moneys in the SMART Initiative Fund shall be used to reimburse the District for the costs imposed by the California Department of Tax and Fee Administration to administer and operate this tax pursuant to Section 6.

The remaining moneys in the Fund shall be appropriated pursuant to Section 19.

Section 19. Expenditure Plan.

Consistent with paragraph (2) of subdivision (b) of Section 105115 of the Public Utilities Code, the proceeds in the SMART Initiative Fund shall be expended consistent with the purpose of providing a rail transit system under the jurisdiction of the District, including for (1) operations and maintenance; (2) capital and state of good repair, (3) and maintaining reserves.
To fund the essential capital projects needed to complete and improve the SMART rail and pathway system, the Board may allocate revenue generated by this Act to serve as a local match for federal, state, regional, local, or private grants, including the project and grant funding outlined in SMART’s 2025–2030 Strategic Plan.
Proceeds deposited into the SMART Initiative Fund shall be used to support the operations and maintenance of the system, ensure its long-term viability, and advance future expansion. To that end, expenditures may be made for, but are not limited to, the following purposes:

Increasing Ridership and Enhancing Passenger Rail Service. To help achieve the goal of 5,000 daily riders and provide high-quality rail service, proceeds may fund:

Safe, clean, reliable, and accessible passenger rail service
Affordable and user-friendly fare programs
Improved first/last mile transit connections
Coordination with local transit agencies in Marin County and Sonoma County
Enhanced auto and bicycle parking options
Adjustments to service levels based on ridership demand
Customer experience improvements
Marketing, outreach, and communications
System maintenance
Fleet expansion and replacement
Adoption of low- and zero-emission fleet technologies
Climate-resilient infrastructure and operations
Workforce development and training programs

Enhancing and Expanding the Pathway System. To develop and maintain a safe, connected, and user-friendly pathway network, proceeds may fund:

Construction of gap closures in the SMART Pathway and Great Redwood Trail
Construction of pathways associated with rail extensions
Maintenance of the existing pathway in a state of good repair
Enhanced pathway amenities, such as signage, wayfinding, safety, and connectivity
Upgrades to the pathway website and digital tools
Development of plans for future pathway segments and enhancements

Advancing Regional Connectivity. To complete the rail and pathway system from Larkspur to Cloverdale and explore future expansion, proceeds may fund:

Completion of currently funded rail and pathway projects
Grant-seeking efforts to support unfunded extensions
Planning and development of East/West rail corridors
Expansion of rail fleet, yards, and supporting facilities

Supporting Freight Movement and Future Rail Service. In alignment with SMART’s statutory mandate to accommodate freight and preserve future rail corridors, proceeds may fund:

Freight-compatible design for new rail extensions
Preservation of the East/West passenger rail corridor
Continued project development for future passenger service on the East/West alignment

Section 20. Citizen’s Oversight Committee

Administration of the proceeds from the tax shall be subject to review by the Citizen’s Oversight Committee, as established by the Board, to verify that the proceeds are invested in a way that is consistent with the purpose of the tax. The Citizen’s Oversight Committee shall receive the annual audit, hold a public hearing and issue a report annually to provide the public with information regarding how tax proceeds are being spent. The hearing will be held at a public meeting subject to the Ralph M. Brown Act.

Section 21. Annual Report.

The Chief Financial Officer of the Sonoma-Marin Area Rail Transit District shall annually prepare a report setting forth the amount of funds collected and expended; and the status of operations and projects funded by this Act.

Section 22. Annual Appropriations Limit.

The appropriations limit for the District shall be adjusted periodically by the aggregate sum collected by levy of this Act.

Section 23. Termination Date.

This Act shall remain in effect for thirty (30) years from its effective date and shall be repealed by operation of this section on that date, unless a later measure is adopted before that date which deletes or extends the termination date.

Section 24. Effective Date.

This ordinance shall be considered adopted upon the date the vote is declared by the District board, and shall go into effect 10 days after that date. Although this ordinance shall be deemed to be effective once adopted a simple majority vote of the electors voting, the new term and related tax and fiscal provisions of this Act shall not be in effect until April 1, 2029.

Section 25. Severability.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

Section 26. Amendment.

Except for amendments that would change the amount of the tax imposed by this Act, the District Board of Directors may amend this Act without submitting the amendment to the voters for approval, provided that the amendment is consistent with and furthers the purposes of this Act as enacted by the voters.

Section 27. Liberal Construction

This measure is an exercise of the initiative power of the People of the Sonoma-Marin Area Rail Transit District to implement a special tax to fund the purposes set forth in the Act, and it shall be liberally construed to effectuate these purposes.

Section 28. Conflicting Measures

This Act is intended to be comprehensive. It is the intent of the People of the Sonoma-Marin Area Rail Transit District that, in the event this measure and one or more measures relating to a special tax in the Sonoma-Marin Area Rail Transit District shall appear on the same ballot, the provisions of the other measure or measures shall be deemed in conflict with this measure. In the event that this measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and all provisions of the other measure or measures shall be null and void.