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Albany adopts tiered real‑property transfer tax; council debates volatility and Golden Gate Fields impact
Summary
Council approved a tiered real‑property transfer tax measure placing five tiers on the Nov. ballot (bottom 25% at 1%, top 10% at 3%), debated whether to use a 1‑year vs. 3‑year averaging method for tiers, and heard public concern about a possible Golden Gate Fields sale and housing affordability.
The Albany City Council on July 20 approved a proposal to replace the flat real property transfer tax with a five‑tier structure that would lower the rate for the lowest quartile of sales and raise it for the highest transactions. Staff explained the tiers are set so the bottom 25% of transfers would pay 1% (or $10 per $1,000) and the top 10% would pay 3% of sale value; the tiers would be recalculated annually using a 12‑month rolling period running Sept. 2025 through Aug. 2026.
Finance staff cautioned the council that transfer tax revenue is volatile and linked to market activity: "It is a very volatile source," the staff presentation said, and a tiered structure will produce larger year‑to‑year swings than a multi‑year average while better reflecting current market conditions.
Public comments focused on the potential sale of Golden Gate Fields. One resident said a reported $175 million sale would produce large transfer tax receipts under the proposed top tier and warned of downstream effects on rents and schools. Council members and staff responded with corrections and context: councilor Jordan said publicly available property tax lines suggest a lower figure (around $1.1 million) rather than the $1.5 million the commenter cited, and staff reminded the public that some line items are fees, not ad valorem taxes.
Council deliberations also considered whether to use a 1‑year or 3‑year averaging period to set tier breakpoints. Staff recommended a 1‑year rolling period to keep tiers responsive to market conditions; several councilors agreed and the council retained the annual (1‑year) calculation. The council also instructed legal staff to soften ballot language from "increase" to "adjust" to reflect the mixture of reductions and increases across tiers.
Next steps
Resolution 2026‑64 was adopted to place the tiered transfer tax on the November ballot. If voters approve the measure, staff will annually calculate tier thresholds and report projected revenue to the council.
