St. Helena Considers Real Estate Transfer Tax Measure for November 2024 Ballot

St. Helena Considers Real Estate Transfer Tax to Offset Budget Shortfalls

St. Helena is in the process of finalizing a ballot measure for the November 2024 election that would introduce a real estate transfer tax to generate revenue and address anticipated budget shortfalls. The proposed tax, which would apply to properties changing hands, is set to be decided by the City Council on June 11.

The tax structure under consideration includes an exemption for real estate sales under $1 million, a 1.5% tax on sales between $1 million and $5 million, and a 3% tax on sales over $5 million. This model is expected to generate approximately $5.3 million annually for the city’s general fund.

During a recent council meeting, members debated between the proposed progressive tax model and a flat tax model, which would impose a 2.5% transfer tax on all real estate sales over $1 million. Polling data from FM3 Research indicated that 63% of voters favored the progressive tax, leading the council to lean in that direction.

Council members expressed the need to strike a balance between generating revenue and not overburdening taxpayers. Mayor Paul Dohring emphasized that the tax would primarily affect property owners with long-held assets and should not have a significant impact on individual taxpayers.

While some council members acknowledged the public’s aversion to taxes, they emphasized the importance of maintaining a well-run city with adequate resources for public safety and infrastructure. The council aims to educate the community about the proposed tax and make it as palatable as possible to voters.

As the decision date approaches, the council faces the challenge of securing support for the measure and ensuring that it aligns with the community’s needs and priorities. Stay tuned for updates on this developing story.

For more information, contact Staff Writer Edward Booth at 707-521-5281 or [email protected].