11 18-0670 Subject: Real Estate Transfer Tax Tiered Rates Measure
From: Councilmembers Kalb
Recommendation: Adopt A Resolution On The City Council's Own Motion Submitting To The Voters At The General Municipal Election On November 6, 2018, A Proposed Ordinance (1) Amending Oakland Municipal Code Section 4.20.020 Of The Real Property Transfer Tax To Establish Tiered Rates Based On Value Of Consideration; (2) Amending Section 4.20.080 To Reduce The Real Property Transfer Tax By .5% For "Low And Moderate Income First-Time Homebuyers"; (3) Adding Section 4.20.220 To Reduce The Real Property Transfer Tax By Up To One Third For Seismic Retrofit And Solar Energy System Installation Expenses Incurred By "Low And Moderate Income Homebuyers"; And, (4) Directing The City Clerk To Fix The Date For Submission Of Arguments, Provide For Notice And Publication In Accordance, And Take Any And All Actions Necessary Under Law To Prepare For And Conduct The November 6, 2018 General Municipal Election
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My organization, Centro Legal de la Raza, supports the proposed measure to create a tiered rate real estate transfer tax. As a housing attorney, I represent tenants who are being displaced from their homes due to our regional housing crisis. Already an inequitable housing cost burden falls on low and middle-income Oakland residents, who typically pay a far greater percent of their income towards housing than they can afford.
Oakland residents who are able to purchase their own homes should not also have to contend with an inequitable tax rate: a multi-million dollar property sale should not be taxed at the same rate as more modest home. Real estate speculation continues to drive up the cost of housing, and our tax rates should reflect solutions rather than a lopsided status quo.
A progressive tax rate is a commonsense response to this problem.
My organization, Centro Legal de la Raza, supports the proposed measure to create a tiered rate real estate transfer tax. As a housing attorney, I represent tenants who are being displaced from their homes due to our regional housing crisis. Already an inequitable housing cost burden falls on low and middle-income Oakland residents, who typically pay a far greater percent of their income towards housing than they can afford.
Oakland residents who are able to purchase their own homes should not also have to contend with an inequitable tax rate: a multi-million dollar property sale should not be taxed at the same rate as more modest home. Real estate speculation continues to drive up the cost of housing, and our tax rates should reflect solutions rather than a lopsided status quo.
A progressive tax rate is a commonsense response to this problem.
Sincerely,
Jackie Zaneri
Centro Legal de la Raza