REPORT TO COUNCIL
SUBJECT
Title
Receive Real Property Transfer Tax Polling Results for Consideration of Placing a Ballot Measure on the November 2024 General Election
Report
BACKGROUND
In 2021, the City Council sponsored a study issue to explore a 2022 General Election ballot measure to modify the City's Real Property Transfer Tax (RPTT) (FIN 21-01). Council held a study session on April 26, 2022, where staff presented a variety of potential tax structures and estimated impacts to RPTT revenue to Council. The City retained the services of polling consultants to conduct voter opinion polling on potential revenue ballot measures to increase the City's RPTT rate and structure. On July 12, 2022, Council reviewed the polling results and directed staff to return with potential draft ballot measure language and actions needed to place a ballot measure on the November 2022 ballot (RTC 22-0732). Direction was given to proceed with the flat (non-tiered) $7.50/$1,000 of sales price tax structure with an exemption threshold of $4 million and provide options for regular adjustments of the threshold based on a real property-based index or rating. On July 26, 2022, the Council considered but failed to pass a motion to move forward with the ballot measure (RTC 22-0773).
On November 28, 2023, the City Council directed staff to present information and options for consideration to place an RPTT measure on the November 2024 ballot (RTC 23-1089).
On January 23, 2024, the City Council appropriated funding for polling consultant costs provided direction to proceed with public polling (RTC 24-0184).
EXISTING POLICY
Council Policy, Chapter 7, Planning and Management, Policy B.1.1 - The City will maintain a diversified and stable revenue base, not overly dependent on any land use or external funding source.
Council Policy, Chapter 7, Planning and Management, Policy B.1.4 - When considering a new tax or revenue source or an increase in an existing tax or revenue source, the followi...
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