In a recent government meeting, Berkeley officials discussed a proposed tiered increase to the Measure P tax, aimed at generating additional revenue to support vital community services, particularly those addressing homelessness. Mayor Adeghin emphasized the urgency of implementing this measure, citing the need to sustain over 30 programs that serve the city's most vulnerable populations. Without a new funding plan, he warned, these services could face closure, potentially leading to an increase in homelessness.

The proposed tax structure would adjust based on property values, with specific dollar thresholds set for each tier. Properties valued at $1.6 million or higher would incur a tax rate of 2.5%, while those valued at $1.9 million and $3 million would see rates increase to 3% and 3.5%, respectively. This tiered approach aims to alleviate the financial burden on median property owners while targeting higher-value transactions. Additionally, the implementation of the tax would be delayed until January 1, 2027, allowing time for the city to develop a comprehensive expenditure plan with community input.

Council Member Hahn supported the mayor's proposal, highlighting the importance of ensuring that the surtax remains focused on high-value transactions, thereby protecting average homeowners from increased taxation. The council's discussions reflected a commitment to addressing stakeholder concerns, particularly regarding market fluctuations and the potential impact on property buyers in Berkeley.

The proposed changes to Measure P are projected to generate between $2 million and $4 million annually, providing crucial funding to continue the city's efforts in reducing unsheltered homelessness, which has seen a 45% reduction since the original measure's implementation. The council is now considering placing this revised measure on the ballot for voter approval.