Supervisors Reject Anti-Tax Proposal, Shift Focus to Federal Cuts

The San Diego County Board of Supervisors has rejected a proposal aimed at opposing new taxes, instead directing its attention to anticipated reductions in federal funding. On February 10, 2026, the board opted not to advance a resolution proposed by Supervisor Jim Desmond, which sought to formally oppose state legislation that would increase the property-related documentary transfer tax and permit counties to levy payroll taxes.

Desmond’s motion did not receive a second during the meeting, effectively halting its progress. His office indicated that the proposed changes to the documentary transfer tax would significantly impact property transactions, raising the tax on a $1 million home sale from $1,100 to $61,100. Desmond expressed concerns that new payroll taxes would further burden businesses, increase labor costs, and reduce take-home pay for workers.

The board members Paloma Aguirre, Terra Lawson-Remer, and Monica Montgomery Steppe supported an alternative proposal from Lawson-Remer. This initiative emphasized the need to avoid tax benefits for wealthy individuals while shifting the financial burden onto working families. Lawson-Remer stated that her proposal would allow voters to decide whether the wealthiest citizens should contribute to essential services such as health care and emergency response.

In contrast, Supervisor Joel Anderson voted against the proposal, asserting his stance against unnecessary taxation. Desmond criticized the board’s decision, asserting it sends a message to residents that they should be prepared to pay more in taxes, especially as they already face rising costs for electricity, water, and housing.

Desmond also pointed to the county’s budget, which has increased by over $2 billion since he took office in 2019, arguing that the focus should be on reducing expenditures rather than increasing taxes. He described the anticipated federal funding cut of $300 million as a worst-case scenario, suggesting the actual reduction may only be $43 million, which he believes the county could manage.

The chair of the board, Lawson-Remer, characterized Desmond’s proposal as “extremely misleading,” suggesting it aimed to protect residents from taxes that had not been proposed. She referenced an analysis indicating that the approval of H.R. 1 could introduce significant financial risks, particularly to programs such as Medi-Cal and SNAP, potentially impacting vulnerable populations.

Board Vice Chair Monica Montgomery Steppe expressed her opposition to regressive taxes and advocated for alternative measures, including rent stabilization and regulating developer profits. Aguirre highlighted the struggles faced by residents in her district, many of whom are dealing with housing insecurity.

As the county navigates potential federal funding cuts, the debate over taxation and fiscal responsibility continues to be a critical issue for the Board of Supervisors and the residents of San Diego County.