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Monterey County board asks staff to poll voters on high-value property transfer tax and possible hotel-tax increase
Summary
After a lengthy public discussion, the Board of Supervisors voted to fund polling and consultant work (about $83,500) to test options for a property transfer tax targeting high-value sales and a possible increase in the transient-occupancy tax for unincorporated Monterey County. Staff will return with feasibility, tax-structure options and community engagement plans.
Monterey County officials moved forward April 14 with an exploratory study to see whether voters would approve new taxes to help fund workforce and “missing middle” housing. Assistant County Administrative Officer Michael Beeman presented staff27s analysis of a property-transfer tax that would target the upper end of the market (options discussed included a threshold at $10 million or $5 million) and a separate increase to the county27s transient-occupancy tax (TOT) for unincorporated areas.
Beeman told the board the county27s data show markedly more transactions above $5 million than above $10 million; over the last three years there were about 30 sales at $10 million and above, versus roughly 108 at $5 million and above. That wider base could yield materially more revenue, staff said, but might also be harder to sell to voters. Beeman and staff recommended hiring polling and strategic consultants to test voter appetite and to design options for ballot language and exemptions.
Supervisor Chris Lopez, who seconded the motion, and Supervisor Wendy Root Askew emphasized the need for indexing and exemptions in any measure — for example, excluding agricultural parcels and providing relief for certain nonprofit acquisitions. Supervisor Luis Alejo and others asked staff to model graduated rate structures (a rising percentage at higher price bands) and to show district-level impacts; staff said they would return with that analysis.
Supporters from housing advocacy groups and labor told the board the measures could be essential to move local housing production and preservation forward. Opponents and business interests urged caution, citing case studies — particularly Los Angeles and San Francisco — where high-end transfer taxes were associated with temporary reductions in transactions and where some jurisdictions later refined their rates and exemptions.
The board voted unanimously to authorize about $83,500 in contingency funds to hire EMC Research for polling and a political/strategic consultant to convene initial stakeholder conversations and develop ballot options. Staff will present poll results, estimated revenues for different thresholds and proposed ballot language for further board consideration ahead of any decision to place a measure on the November ballot.
The next steps spelled out by staff include feasibility polling, fiscal modeling of different thresholds and rate structures, and a stakeholder engagement plan that will inform what would return to the board for a final decision.
