Title
Receive a preliminary analysis in response to Board Referral No. 2026.01 (Daniels) seeking a potential special real estate transfer tax on ultra-high-value single-family residential property transactions in unincorporated Monterey County and provide direction as appropriate.
Report
RECOMMENDATION
It is recommended that the Board of Supervisors:
a. Receive a preliminary analysis responding to Board Referral No. 2026.01 regarding a potential special real estate transfer tax on ultra-high-value property transactions in unincorporated Monterey County; and
b. Provide direction on a preferred processing option of the referral:
i. Proceed with completion of the referral as outlined in this report;
ii. Proceed with modifications as directed by the Board;
iii. Direct staff to return with a comprehensive feasibility analysis, including a comparative analysis of potential policy options, and a detailed staffing and cost estimate necessary to complete the analysis and support potential implementation; or
iv. Rescind the referral.
c. Provide any additional direction, as appropriate.
PRELIMINARY ANALYSIS
Background
Board Referral No. 2026.01 (Daniels) requests an evaluation of a potential special real estate transfer tax applied to single-family residential property sales exceeding $10 million in unincorporated Monterey County.
The referral seeks to explore whether such a tax could establish a dedicated and stable local revenue source to support housing initiatives in proximity to the sale of those homes, including:
· Workforce housing “Missing middle” housing First time homebuyer assistance
· Housing production necessary to meet State -Housing Element requirements
For purposes of this analysis:
Workforce Housing generally refers to housing that is affordable to households earning moderate incomes, typically between 80% and 120% of Area Median Income (AMI), including teachers, healthcare workers, hospitality employees, and public safety personnel who often wor...
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