BizFed's Board of Directors voted last week to OPPOSE the November ballot initiative in the City of Santa Monica that would TRIPLE the Documentary Transfer Tax (“DTT”) from $3.00/$1,000, to $9.00/$1,000 (
only on properties selling for over $1,000,000.00).
BizFed is poised to begin an active campaign to defeat this ballot measure. Because - In addition to undermining Prop 218, this tax increase would be over and above the County’s $1.10/$1,000 tax, bringing the total to 1.1% of the purchase price, and making Santa Monica the highest in the region.
Supporting Views Say: This is a creative way to avoid the Prop 218 requirements. Any tax going to general purposes, such as the General Fund, only requires a simple majority (50% + 1) to pass. A specific tax, such as raising taxes for the specific purpose of funding Affordable Housing, requires a 2/3 voter threshold (66.6%). By separating out the two initiatives, the City of Santa Monica is avoiding the 2/3 requirement. The “advisory” vote is non-binding, but merely a suggested direction to the City Council to spend money on Affordable Housing.
SUPPORTING VIEWS: (Views in support of requested BizFed action / OPPOSED to initiative)
Reported in the Santa Monica Lookout, July 11, 2014
. . . Not favoring the measure was Councilmember Bob Holbrook, who was the lone opposition vote of the six people on the dais (Mayor Pro Tem Terry O’Day was not in attendance). Holbrook said he could only support the measure if it were one that had everybody sharing the burden.
“This is a simple one,” he said. “Ask the people who don’t own property to vote a measure through so that people who own property have to pay all the taxes. It’s simple in Santa Monica when the majority of voters aren’t property owners.” . . .
