On June 17, 2024, San Jose Councilmember Omar Torres introduced a memo proposing to increase Measure E transfer taxes. The proposed rates were as follows:
● 4% for properties sold or transferred for more than $5 million.
● 5.5% for properties sold or transferred for more than $10 million.
● 6% for properties sold or transferred for more than $25 million.
The memo exempted properties sold or transferred for less than $3 million.
During the City Council Meeting on June 18, 2024, Torres described the increase as a way to generate more revenue for the City, as polling indicated that most current options were not supported by the public. His memo directed staff to come back with ballot measure language at a Special City Council Meeting on August 6. However, staff expressed concerns that the time provided would not be sufficient for a full analysis on whether the tax increase would actually generate more revenue for the City.
In response to these concerns, Torres attempted to amend his memo to defer the transfer tax increase to the November 2026 ballot. This move was questioned by Mayor Mahan, who reasoned that the agenda item being discussed was specifically about revenue measures for the November 2024 ballot. The City Attorney confirmed that Torres’ motion to amend his memo was not appropriate for the current agenda item.
Ultimately, Torres’ memo was neither accepted nor voted on. However, staff mentioned that they would explore the transfer tax increase and come back with ideas sometime in early 2025.