SO CLOSE!
On November 4, 2008, Alameda CA voted to increase its city transfer taxes from $5.40/$1000 of sales price to $12.00, or an unbelievable increase of 122%. It passed by a narrow margin: 15,256 (50.70%) in favor, to 14,836 (49.30%) against, or a difference of only 420 votes.
This measure was presented as a question: To maintain essential City services such as keeping existing fire stations open; maintaining neighborhood policing programs;improving traffic flow and pedestrian and bicycle safety; preventing recreation program cutbacks; and restoring previously reduced library hours; shall the City of Alameda increase the City real property transfer tax, charged when a property is sold, from $5.40 to $12.00 per $1,000.00 of value, limited to 20 years and subject to audits?
This puts Alameda --- li'l island of 72,000 people --- as the FOURTH HIGHEST CITY TRANSFER TAX in Alameda County, California. Some cities, like Dublin, Pleasanton, Livermore, San Leandro, San Lorenzo, have none.
Why, oh why did the City look to taxes on real estate sales as a source of revenue? Are taxes the ONLY solution to every budgetary crisis? Do they think the only way to build a bridge is on the backs of the current and future homeowners?
WHEN IS IT EFFECTIVE?
But the sad thing is...now that it's passed, no one seems to know when it would be effective. I have some escrows that will close before the end of the year. And each title company working on them has to investigate the effective date. They don't know where to start. Lenders are scrambling to determine if they should re-draw their loan docs. Buyers are uncertain of whether they will have enough funds at closing to cover the increase.
A call to City Hall got the answer that the Counci members are meeting Dec. 2 to certify the vote, and that it will be effective 10 days later, or Dec. 12. But as of this writing, they are still looking at provisional votes. There's still a chance the measure may not pass. Wish, wish, wish,
One of my sellers is a destitute widow who has to sell her home of 40 years. The additional tax burden of the increased city transfer tax comes to $1800 (her half) as compared to $810 if we left well enough alone.
So again, how does this increased tax help the seniors?
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