Title
a. Receive an update on community and stakeholder support regarding a potential real estate transfer tax affecting ultra-high-value residential properties in unincorporated areas; and
b. Provide direction to staff on whether to move forward with developing a tax measure for potential placement on a future ballot.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive an update on community and stakeholder support regarding a potential real estate transfer tax affecting ultra-high-value residential properties in the unincorporated area; and
b. Provide direction to staff on whether to move forward with developing a tax measure for potential placement on a future ballot.
SUMMARY/DISCUSSION:
On March 17, 2026, the Board reviewed the first follow-up report for Board Referral No. 2026.01 (Daniels), which requested staff to analyze the feasibility of a special real estate transfer tax (PTT) applied to transactions involving ultra-high-value residential properties. The discussion addressed:
- Considering a $10 million threshold, with a possible adjustment to $5 million;
- An initial assessment of market impacts, policy framework, and legal requirements; and
- Instructions to return with further analysis.
On April 7, 2026, staff presented a broadened evaluation including alternative thresholds, revenue estimates, experiences from similar jurisdictions, and suggestions to conduct public opinion polling for a potential Property Transfer Tax (PTT). The Board approved funding for a community survey and scheduled to return on June 9, 2026, to share results.
On June 9, 2026, the Board reviewed the survey findings, which showed limited support for a special PTT, starting at approximately 51 percent, short of the two-thirds majority required under state law. While support rose slightly after additional information was provided, it never reached the necessary two-thirds level. Survey responses ranged from the low to hi...
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