27,714 / 54.3% Yes votes ...... 23,349 / 45.7% No votes

See Also: Index of all Measures

Financial Implications
This special tax would be imposed upon all real property with a transfer price of $600,000 or more. It would add 0.5% to the amount of the existing transfer tax on sales of $600,000 or more, and 1% to the existing transfer tax on sales of $1,000,000 or more. The current rate is 1.5% of the sales price on all property regardless of transfer price. The additional transfer tax on sales of $600,000 or more would cost $500 for every $100,000 in sales price of property, and the additional transfer tax on sales of $1,000,000 or more would cost $1000 for every $100,000 in sales price of property.

s/MANUELA ALBUQUERQUE, Berkeley City Attorney

After three years of budget cuts, thousands of Berkeley children are at risk of losing essential youth services.

Over the years Berkeley has built a network of successful educational, health, and safety programs for our youth. Our tax dollars have funded recreation and summer programs; after-school tutoring, arts and music programs; school safety; counseling services; and, the Berkeley High School Health Center.

MEASURE K is a temporary increase in the existing real estate transfer tax that will generate enough funds to keep essential youth services in place. Measure K is NOT a new tax on homeowners-it is a modest increase in the real estate transfer tax to be paid ONLY at time of sale.

Your YES VOTE will preserve the quality of life we value in Berkeley. It will protect our children during and after school and it will maintain the network of valuable youth services we depend upon.

Through employee wage concessions and program cuts, the City has made millions in cuts-and more are expected. But we cannot afford to balance our budget on the backs of our children.

A YES vote on Measure K will generate about $2 million to fund programs currently scheduled for cuts:

• After school and summer programs;
• School crossing guards, school resources officers and after school safety monitors;
• School-based health and mental health programs;
• Tutoring and mentoring for academically challenged students;
• Emergency services and shelter for homeless youth

Join former City Manager Weldon Rucker, Vice Mayor Shirek, Councilmembers Breland, Hawley, Maio, Spring, and Worthington in supporting Berkeley's future.

Vote YES on Measure K-Save our city, Support our youth!

s/TOM BATES, Mayor, City of Berkeley
s/JOHN T. SELAWSKY, President, Berkeley School Board
s/DARRYL G. MOORE, Trustee, Peralta Community College Board
s/TRINA OSTRANDER, Executive Director, Berkeley Public Education Foundation
s/MARK TENENBAUM, Real Estate Broker

• This tax does not just affect a few Berkeley homes. In 2003 over 1,300 Berkeley homes sold at an average price of over $600,000, the threshold for the proposed tax increase. In contrast to what the city tells you, more and more Berkeley families will be impacted by this higher tax.
• This property transfer tax increase is not "modest". It will increase the existing 1.5% transfer property tax rate to 2% or 2.5%. A typical home that sells in every Berkeley neighborhood for $600,000 will pay a tax of $12,000, a 33% increase.
• This tax will add a significant burden on first-time homebuyers and elderly sellers.
• It will never be a "temporary tax" and it is not deductible from federal or state income taxes.
• The reason for this tax increase is not compelling. Berkeley taxpayers support Youth Services! Berkeley taxpayers ALREADY fund over 55 youth programs (excluding recreational) at an annual cost of $11 million. Shouldn't the City and the School District combine their resources before asking for additional taxes?
• In 2003-4 the City collected net revenue of about $10.5 million through the existing property transfer tax. Why should we be taxed even more?

DON'T DISCOURAGE HOME OWNERSHIP-VOTE NO ON MEASURE K

s/KENNETH T. ROSEN, Professor of Business Administration & Chair of the Fisher Center for Real Estate and Urban Economics, Haas School of Business, UC Berkeley
s/BETTY OLDS, Councilmember
s/GORDON WOZNIAK, Councilmember
s/SEYMOUR FROMER,
s/MICHAEL WILSON, individually and on behalf of President, Berkeley Property Owners Association

• This Measure will increase the existing 1.5% property transfer tax rate so that typical homes in every Berkeley neighborhood that sell for $600,000 and up will be taxed starting at $12,000, a $3,000 minimum increase.
• With this increase, Berkeley will have the highest transfer tax in the state.
• For young buyers this tax will result in an added cost to buying into an already very difficult home market. For elderly sellers it means that at the time in your life when you most need it, your equity in your home will be reduced.
• Real Estate Professionals oppose this tax and say it will depreciate the value of all Berkeley homes.
• Existing annual transfer tax revenues have increased 100% in the last seven years from $5.1 million to over $10 million pumping money into the City budget at an all time high. Overall property tax revenues have increased by 62% over the past seven years. Yet, the City has not learned to live within its budget.
• Over $11 million is already spent annually by the City for youth programs. These existing programs have not been evaluated as promised by the City two years ago. Now the City wants to add new programs paid for by this tax. When youth programs are tied to this tax, what happens when the predicted real estate boom ends?

s/BETTY OLDS, Councilmember
s/MIRIAM NG, individually and on behalf of, Chair, Local Governmental Relations Committee, Berkeley Association of Realtors
s/CECILIA GAERLAN, Member, Berkeley Citizens Budget Review Commission
s/LAURA MENARD, Member, Berkeley High School Safety Committee
s/ELEANOR PEPPLES, individually and on behalf of, President, North East Berkeley Association Board

Measure K is NOT A NEW TAX.

Measure K ONLY APPLIES TO THE SALE OF EXPENSIVE PROPERTY.

Berkeley homes regularly have multiple bids and sell for substantially over the asking price. An increase of .5% on homes over $600,000 and 1% increase on homes over $1,000,000 will not slow down or prevent the sale of expensive homes in Berkeley.

Measure K is a TEMPORARY INCREASE-it expires when the State stops taking cities' property taxes.

MEASURE K WILL ENSURE THAT YOUTH SERVICES ARE AVAILABLE FOR ALL OF OUR YOUNG PEOPLE by increasing the transfer tax on approximately 250 sales a year.

Measure K has NO NEW PROGRAMS.

Measure K will RESTORE:

• After school and summer programs.
• School crossing guards and other youth safety efforts.
• Tutoring and mentoring programs.
• School-based health and children's mental health programs.
• Emergency services and shelter for homeless youth.

• Cut $14 million from its current budget.
• Eliminated over 100 positions.
• Established a hiring freeze.
• Employees have agreed to wage reductions.

Join Assemblywoman Loni Hancock, Supervisor Keith Carson, Pastor Sarah Isakson, Dr. Ron Adler and School Boardmember Terry Doran in VOTING YES ON MEASURE K.

s/TOM BATES, Mayor, City of Berkeley
s/ELIZABETH HALL, Vice-President of External Affairs, Associated Students of University of California (ASUC)
s/ROIA FERRAZARES, President, Berkeley PTA
s/REV. GEORGE CRESPIN, St. Joseph the Worker Church
s/STEVE LUSTIG, Acting Vice Chancellor, University of California at Berkeley

BE IT ORDAINED by the People of the City of Berkeley as follows:

Section 1. That Section 7.52.041 is added to the Berkeley Municipal Code to read as follows:

7.52.041 Additional special tax imposed to fund youth services and youth safety programs
A. In addition to the general tax imposed under Section 7.52.040, there is hereby imposed on transfers of lands, tenements, or other interests in real property located in the City of Berkeley, an additional real property transfer special tax:

1. At the rate of 0.5% of the value of consideration when the sale price is $600,000 or more; and
2. At the rate of 1% of the value of consideration when the sale price is $1,000,000 or more.
Except as set forth in Section 7.52.060, this special tax applies regardless of the method by which the transfer is accomplished or the relationship of the parties to the transfer.

Section 2. That Berkeley Municipal Code Section 7.52.060.K.1 is amended to read as follows:

7.52.060 Exceptions.
K.1. Up to one-third of the tax imposed by Section 7.52.040 of this chapter shall be reduced, on a dollar for dollar basis, for all expenses incurred on or after October 17, 1989 to "seismically retrofit" either any structure which is used exclusively for residential purposes, or any mixed use structure which contains two or more dwelling units.

Section 3. Pursuant to California Constitution Article XIIIB, the appropriation limit for the City is increased by the aggregate sum authorized to be levied by this increase in the tax rate for each of the four calendar years beginning 2005 through 2008.