Piedmont council sets 1.75% on first reading for transfer tax ballot measure after debate on timing and state risk

Council completed the first reading of a draft ordinance to increase Piedmont's real property conveyance tax and directed staff to insert 1.75% into the first reading ballot language, with the option to adjust the figure at the second reading.

City staff framed the issue by noting the city has not updated the transfer tax in 33 years and that revenues are not keeping pace with rising costs such as construction and paving. Councilors debated a range of possible rates (1.75% was favored by several members; some urged considering a higher top rate to allow room to lower the figure before the final ballot language). One council member emphasized caution because a 2020 measure at 1.75% narrowly failed.

The city attorney and city administrator explained an external factor the council should consider: a statewide measure (described in the meeting as the Taxpayers Protection Act) could, if it takes effect, eliminate transfer taxes for charter cities or result in a legislative cap. City Administrator warned this could either leave Piedmont where it is (1.3%) or, in a worse scenario, eliminate the local authority, making contingency planning necessary.

"If the statewide measure passed, the statewide measure that's being put on the ballot ... then charter cities would not be able to levy real property conveyance taxes," staff said, noting the potential fiscal impact. After discussion the council moved and approved the first reading with 1.75% included and with agreed language edits (including gender'inclusive pronouns) to be finalized for second reading.