Free AC Transit for All – Progressive Funding Plan (Alameda County)

Goal: Permanently eliminate bus fares on AC Transit by replacing fare revenue with progressive, socially and environmentally just funding sources.

• Farebox revenue to replace: ~$55 million/year

• Goal: Raise $60–$70 million annually using no regressive taxes.

Progressive Revenue Sources

High-End Commercial Real Estate Tax (Gross Receipts or Vacancy Tax)

• A special tax on large commercial property owners, especially Class A office buildings and logistics hubs, targeting owners with over $10M in property holdings countywide. Example: A 1% tax on gross commercial rental receipts over $5 million.

• Estimated revenue: $15–$20M/year.

Luxury Real Estate Transfer Tax (Mansion Tax)

• Additional transfer tax on properties over $3 million (residential or commercial). Modeled on Berkeley and Los Angeles measures.

• Estimated revenue: $10–$15M/year. (exempting owner-occupied low-income transfers)

Polluter Impact Fee (Heavy Industry and Port of Oakland Surcharge)

• Annual fee on fossil fuel infrastructure, polluting industries, and freight operators. Target fossil fuel storage, chemical processing, and major logistics firms. Add surcharge on Port of Oakland container throughput (target major shipping companies).

• Estimated revenue: $10–$12M/year. Justified as mitigation for public health and climate damages.

Big Business Payroll Tax

• Tiered payroll tax on corporations with over 500 employees in Alameda County. Exempt nonprofits and public agencies.

• Estimated revenue: $10–$15M/year. Inspired by San Francisco’s gross receipts tax model.

E. Tech & Logistics Equity Fee

• Target major firms that benefit from county infrastructure: Amazon, Tesla, Apple, Google campuses, etc, using a per-employee fee or square-footage-based infrastructure fee.

• Estimated revenue: $8–$10M/year, applied to logistics centers in Fremont, Livermore, Oakland.

Climate Equity Fund Match

• Leverage state programs like: Cap-and-Trade funds (CARB) and Clean Mobility Options Voucher Program. Use these non-local progressive funds to cover 10–15% of fare-free costs.

• Estimated contribution: $5–$10M/year.

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Administration & Oversight

Create a Transit Equity and Climate Fund administered by the Alameda County Transportation Commission (ACTC) that is composed of Labor reps (ATU, SEIU), Environmental justice groups, Disability and youth advocates. The group provides an annual public audit.