Palo Alto Measure J: What the Cubberley Sales Tax Would and Wouldn't Do for PAUSD

by Chris Renois

On Tuesday, Nov. 3, Palo Alto voters will decide on Measure J. It's a half-cent city sales tax closely tied to the future of the Cubberley Community Center at 4000 Middlefield Road. The Paly Voice, the student news site at Palo Alto High School, recently looked at what the measure would mean for the Palo Alto Unified School District (PAUSD). Below, we combine that reporting with the City of Palo Alto's official election materials so local homeowners, buyers and sellers can see what is and isn't on the ballot.

What Measure J does

According to the Palo Alto City Clerk's office, the City Council voted on June 8, 2026, to put a 0.5% transactions and use tax (what most people call a sales tax) on the November ballot. It needs a simple majority to pass. Officially, it's called the "City of Palo Alto Community Safety/Services Measure." The ballot question says it would raise about $15.6 million a year and stay in place until voters end it.

The City Attorney's impartial analysis points out several details:

It is a general tax. The money would go into the city's general fund and could be used for any lawful city purpose.
Cubberley is the stated priority, but the guidelines are advisory. In June the Council adopted spending guidelines saying it intends to use the money to buy seven acres of Cubberley from PAUSD. The plan is then to modernize the center by renovating some buildings, adding new construction and creating outdoor park space.
Timing. If voters approve it, the higher rate would start in April 2027.
Nothing else about the sales tax changes. What's taxable, the exemptions and how the tax is collected would stay the same.

The Cubberley land deal

The city says the 35-acre Cubberley site first opened as Cubberley High School in 1956. The city owns eight acres there, and the school district owns the rest. Under a memorandum of understanding between the two, the city would buy seven district-owned acres for $65.5 million. That would bring its share to 15 acres and allow work to start on Phase 1 of the Cubberley Conceptual Master Plan. The sale only happens if Measure J passes.

The Campanile, Paly's student newspaper, reports that the price comes from a $60.65 million figure agreed to in 2024, adjusted to 2027 dollars. In October, Palo Alto Online reported on a joint city-district statement. It said the district had first asked for $90 million, based on what outside groups might pay under a long-term lease.

What it would, and wouldn't, mean for PAUSD

The Paly Voice reports that PAUSD is dealing with a $33 million budget deficit. Superintendent Jason Glass told the paper that under California Education Code 17462, money from selling surplus school property generally has to go to capital outlay or maintenance, not the district's general fund.

In August, the Board of Education approved a plan for the $65.5 million. Palo Alto Online and The Paly Voice both report the same breakdown:

$43.9 million (about 67%) for school maintenance
$18.3 million (about 28%) for modernizing facilities
$3.3 million (about 5%) held as a contingency

The reporting we reviewed doesn't list which campuses would get the work. Glass said the maintenance money could pay for projects the general fund would otherwise cover. But it is one-time money, so it can't pay for salaries or daily operations, which is where the ongoing shortfall is. Trustee Rowena Chiu told The Paly Voice that the board has not discussed the measure as a fix for the deficit. She also said the timing and final price stay uncertain until a sale contract is signed.

Nothing in the measure or in the district's spending plan, as reported, involves attendance boundaries or school assignments.

Who supports it and who opposes it

Palo Alto Online reports that supporters include the entire City Council, the PAUSD board and many of the nonprofits that use Cubberley. The Palo Alto Council of PTAs has also endorsed it. According to The Paly Voice, every current trustee and all three school board candidates support it.

The Palo Alto Daily Post's editorial board recommends a "no" vote and calls the measure non-transparent. A guest opinion in Palo Alto Online criticized the ballot title for not mentioning Cubberley. Chiu herself said she understands some of the concerns. The tax has no end date, and the measure does not legally set the money aside for Cubberley. She endorsed it anyway.

What it means for Palo Alto homeowners, buyers and sellers

This is a sales tax, not a property tax. Unlike a parcel tax or a school bond, it is collected on taxable purchases. It would not be added to your property tax bill.
The rate. Palo Alto's combined sales tax rate is now 9.75%. It rose from 9.125% on April 1, 2026, when Santa Clara County's Measure A took effect. The Daily Post reports that Measure J would raise Palo Alto's rate to 10.25%. If the regional transit measure (RTM) on the same ballot also passes, the rate would reach 10.75%.
Big purchases. If you plan to furnish, remodel or replace appliances, the higher rate would apply to taxable purchases made in Palo Alto starting April 2027. According to the Palo Alto Council of PTAs, groceries and medications are exempt. Landlords and small-business owners with specific questions should talk to a tax professional.
Watch Cubberley's next steps. If the sale goes through, the redevelopment would reshape a large public site on Middlefield Road. You can follow the master plan phases through the city's Cubberley pages.

The Santa Clara County Registrar of Voters will post results after polls close on Nov. 3. We'll follow up once the outcome is clear.

Sources

Thinking about buying or selling in the Bay Area? Chris Renois can walk you through how these changes affect your home and your plans. Call or text (650) 512-9817, email chrisrenois@therealexperts.com, or get a free home value estimate.

This article is general information for Bay Area homeowners and buyers, not legal, tax or financial advice. Laws, rates and deadlines change; please confirm details with the original sources linked above or a qualified professional. Chris Renois, California DRE #02030130.