Fail: 10,364 / 42.50% Yes votes ...... 14,020 / 57.50% No votes

See Also: Index of all Measures

Impartial Analysis from City Attorney

BALLOT MEASURE AMENDING THE MUNICIPAL CODE TO SET THE REAL PROPERTY TRANSFER TAX RATE AT NINE DOLLARS PER THOUSAND DOLLARS OF SALE PRICE FOR ALL SALES OF ONE MILLION DOLLARS OR MORE

This measure, placed on the ballot by the City Council, proposes to raise local City of Santa Monica revenues by increasing the real estate transfer tax charged and received by the City of Santa Monica. The current tax rate is $3.00 per $1,000 of sale price, with fractional parts of $1,000 rounded upward for purposes of calculating the tax. Under the measure, the new tax would be $9.00 per $1,000 of sale price (or fractional part of $1,000) for properties sold for $1,000,000 or more. Transfers for less than $1,000,000 would continue to be taxed by the City at the existing rate of $3.00 per $1,000 of sale price.

All California counties, including Los Angeles County, also collect a real estate transfer tax. The amount of that tax is $1.10 per $1,000 of sale price. So, if the proposed measure is approved by the voters, a sale of real property in Santa Monica for $1,000,000 would be taxed by the City in the amount of $9,000 and by the County in the amount of $1,100.

The City Council approved the proposed transfer tax by more than a two-thirds majority vote. But, the proposed tax can only go into effect if it is also approved by a majority of voters at the November 4, 2014 election. If it is approved then, the proposed tax will go into effect on January 1, 2015.

This measure is accompanied on the ballot by a non-binding advisory measure. It asks voters if the City should use the transfer tax revenue to preserve, repair, renovate and construct affordable housing for low-income people who work or live in Santa Monica, including seniors, veterans, working families and persons with disabilities.

If the transfer tax measure is passed, the outcome of the vote on the advisory question may guide the City Council in deciding how to use the transfer tax revenue. However, the City Council will not be legally bound by the outcome of the vote on the advisory measure. The City Council could decide to use the transfer tax revenue for any lawful City purpose that best serves the City's needs.