Benicia council approves three-tier transfer-tax option for the ballot, projects about $850,000 a year

The Benicia City Council approved putting a real property transfer tax measure on the Nov. 5 ballot and selected Option 2, a three-tier structure staff proposed as an alternative for very high-value transactions.

City Manager Giuliani read the proposed rates: for properties at $2,000,000 and under the tax would be $4 per $1,000 of value (0.004), and for properties above $2,000,000 the rate would be $6 per $1,000 (0.006). Giuliani described an optional third tier discussed by staff — for properties above $10,000,000 a rate of $8 per $1,000 — noting such high-value sales are rare but could create significant windfalls.

Giuliani said staff estimates the transfer tax would generate about $850,000 annually if enacted and allowed the council to budget conservatively; he cautioned revenue is volatile and depends on market transactions. He emphasized exemptions for transfers between family members and that the tax is assessed only on sale or transfer events.

During public comment, Jenny Castaneda, president-elect of the Solano Association of Realtors, told the council her organization supports either option. Resident and realtor Rod Herman also spoke in support and asked how oversight would be handled; staff said oversight would likely be under the municipal-code tax-oversight framework or a new commission and that independent citizen committees would also review the tax.

Councilmembers including Vice Mayor Scott and Councilwoman Birdseye voiced support for Option 2 and noted the potential for rare high-value transactions to provide large one-time revenues. Birdseye moved to approve Option 2; the motion passed on a roll-call vote with all recorded votes in favor.