On May 14, 2024, the Mountain View City Council unanimously voted to draft a Property Transfer Tax revenue measure for the November ballot, aiming to increase the property transfer tax that has remained unchanged since its adoption in 1973.
This decision followed the approval of the Fiscal Years 2023-24 and 2024-25 Council Work Plan on June 13, 2023, which included exploring the feasibility of a potential 2024 revenue measure to fund major projects. These projects include a new public safety building, transportation improvements, and climate change mitigation efforts. Various revenue measures were considered and polled, with 63% of respondents supporting an increase in the existing property transfer tax.
The current transfer tax in Mountain View taxes properties sold or transferred at a rate of $3.30 per $1000. The proposed revenue measure would raise the tax of residential and commercial property sales of more than $5 million, up to $15 per $1,000, which, according to Assistant City Manager Arn Andrews, would generate an additional $9.5 million in annual revenue for the City.
In addition to the property transfer tax, the City also explored a transient occupancy tax (TOT) on hotels, but was barely able to squeak by with 53% of respondents in favor of the tax. However, Councilmember Margaret Abe-Koga advocated for keeping the TOT as an option in case of a strong opposition campaign launched against the transfer tax increase. City Manager, Kimbra McCarthy, also added that a TOT on hotels could be something to consider in the future, possibly on the 2026 ballot.
On June 25, 2024, the Council voted unanimously in favor of placing the Property Transfer Tax revenue measure on the November ballot.
During the meeting, staff recommended an increase of the threshold for properties affected by this proposed tax from $5 to $6 million because it would not heavily affect revenues generated from the tax and poll data showed that the public was more willing to support the tax if there was an increase in the threshold. The Council will proceed with this recommendation.
Councilmember Ramirez and Vice Mayor Matichak will formulate the argument for the ballot measure.