Palo Alto Unified Plans to Ask Voters Again for a School Parcel Tax in May 2027

by Chris Renois

Henry M. Gunn High School building and stone entrance sign on a green lawn under oak trees in Palo Alto

The Palo Alto Unified School District (PAUSD) board wants to put a school parcel tax back on the ballot in May 2027. This would be its second try at keeping funding that voters have approved since 2001, according to Palo Alto Online. If you own property in Palo Alto, the PAUSD part of Los Altos Hills or on Stanford land, or you plan to buy there, this vote could affect your yearly property tax bill.

What the board signaled

Palo Alto Online reported on Nov. 12, 2026, that the Board of Education plans to place a new parcel tax measure on the May 2027 ballot. The board first looked at an earlier election in March 2027. The district sends layoff notices in March, and an earlier vote could have meant fewer of them. The Palo Alto Daily Post reported that the deadline for teacher layoff notices is March 15.

The district's election consultant, Charles Heath, told the board that a May election gives the measure its best chance of passing. According to Palo Alto Online, a May election would also cost the district less. Board members had doubts about waiting. They took no votes, but signaled on Nov. 10 that they would support May, which gave the district more time to measure community support and reach out to voters.

The sources we reviewed did not give the exact election day, the tax rate or how many years the new tax would last. In October, board member Shana Segal said she would support a rate of $941 per year rather than the $800 that failed in June, according to the Daily Post. Watch for the board's formal resolution, which will set the final terms.

Why the district is going back to voters

PAUSD's current parcel tax expires in 2027. Palo Alto Online reports it generates about $16.5 million a year. Voters first approved the tax in 2001 and renewed it in 2005, 2010, 2015 and 2020.

In February 2026, the board put Measure B on the June 2, 2026, ballot. It would have cut the rate to $800 per parcel and frozen it for four years. Like all parcel taxes, it needed a two-thirds majority, according to the Santa Clara County Registrar of Voters. Measure B received about 62.4% of the vote, according to EdSource and the Daily Post. It was the first time in 22 years that district voters had turned down a school tax. The opposition campaign was led by former board members Todd Collins and Ken Dauber, who argued that the district had overstated its financial needs.

Sources give different figures for the current rate. Palo Alto Online and the Daily Post put it at about $905 per parcel. District materials describe the Measure B cut as going from $941 to $800.

The district's budget has tightened since June. The Stanford Daily reported that the board approved raises of 10.4% for teachers and 10.2% for non-teaching staff two weeks after the election. PAUSD is now looking at about $33 million in cuts for the 2027-28 school year. An outside firm, School Services of California, is reviewing that figure and is due to report to the board by Dec. 15. The board expects to vote on reductions in January 2027. Palo Alto Online reported that the new parcel tax would bring in about $17 million if it passes, roughly half the amount the district would otherwise need to cut.

Who it affects

PAUSD serves the City of Palo Alto, parts of Los Altos Hills and Stanford. A parcel tax is a flat amount charged per parcel. It is not based on your home's assessed value, so a condo owner and the owner of a large lot can pay the same amount.

Exemptions matter too. Under Measure B, homeowners aged 65 and older could apply for an optional exemption, and those already exempt would not have had to reapply, according to PAUSD. Low-income homeowners with disabilities who receive federal SSI or SSDI benefits were also eligible. Check whether the new measure keeps the same exemptions once its text is released.

What homeowners, buyers and sellers may want to do

Homeowners: Look at the parcel tax line on your current property tax bill so you know what you pay now. Then compare it with whatever rate the board adopts.
Owners 65 and older: Confirm your exemption status with the district before the new measure is finalized, especially if you recently bought or inherited property.
Buyers: When you budget for a home in the district, remember that the tax could end after 2027 or be renewed, and the rate and length are not yet set. Your lender can help you see how different amounts would change your monthly payment.
Sellers and small landlords: A parcel tax is a small, fixed part of carrying costs. It is still worth explaining clearly to buyers, and rental owners should include it in their operating budgets.
Voters: Board agendas are posted on PAUSD's BoardDocs site. The upcoming meetings on the budget review and the ballot resolution are the best places to follow the details.

For questions about how a parcel tax or an exemption applies to your property, a tax professional is your best resource. We'll keep following this measure as the board sets its final terms.

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.

Cover photo: King of Hearts, CC BY-SA 3.0, via Wikimedia Commons.

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.