San Diego Union Proposes Sales Tax Increase with Infrastructure Focus

A local construction union is proposing a sales tax increase in San Diego that aims to address concerns that led to the failure of a similar measure in 2024.The Laborers International Union of North America (LIUNA) Local 89 believes limiting the use of revenue to infrastructure projects will increase its chances of success.

The previous measure, Measure E, was rejected by voters largely as it allowed city officials broad discretion in spending the funds.The new proposal would restrict spending primarily to infrastructure such as roads, dams, fire stations, and libraries.

While restricting revenue use typically raises the approval threshold to two-thirds, the union plans to qualify the measure as a citizen initiative to maintain the simple majority requirement. this necessitates collecting approximately 82,000 valid signatures from registered voters in San Diego.

The proposed tax increase would raise the city’s sales tax from 7.75% – the lowest in the county – to 8.75%,matching rates in several neighboring cities including Chula Vista,Escondido,and National City.The measure is projected to generate an additional $400 million annually for the city.

Recent polls commissioned by the union suggest that a measure with spending restrictions would fare better than Measure E, which failed by a narrow margin (50.31% to 49.69%). The union has engaged Olson remcho, a prominent election law firm, to draft the proposal and is developing a detailed spending plan.

local 89 plans to invest $4 million in the campaign, allocating $1.8 million for signature collection and $2.2 million for voter outreach. This represents a critically important increase from the $1.3 million spent on the Measure E campaign, reflecting anticipated lower voter turnout in 2026 and a more crowded ballot with other potential revenue-raising measures, including a possible countywide sales tax increase.

“Our surveys show that people don’t trust the city,” stated Kelvin Barrios, director of policy and community engagement for Local 89, emphasizing the importance of the spending restrictions. However, he also noted that polls indicate voters recognize the significant infrastructure needs within San Diego that current funding cannot address.

The union hopes to gain the support of Mayor Todd Gloria and the City Council. The Mayor’s office has indicated he will evaluate the proposal. The measure is slated to appear on the November 2026 ballot.