San Jose, California, Measure E, Real Property Transfer Tax (March 2020)

San Jose Measure E
Election date March 3, 2020
Topic Local property
Status a Approved
Type Referral	Origin Lawmakers
List of California measuresCalifornia Proposition 13 (March)California Proposition 14California Proposition 15California Proposition 16California Proposition 17California Proposition 18California Proposition 19California Proposition 20California Proposition 21California Proposition 22California Proposition 23California Proposition 24California Proposition 25Submit

A property transfer tax measure was on the ballot for San Jose voters in Santa Clara County, California, on March 3, 2020. It was approved.

A "yes" vote supported authorizing the city to impose a real property transfer tax at the following rates: - 0.75% for property valued between $2 million and $5 million, - 1.0% for property valued between $5,000,000.01 and $10 million, and - 1.5% for property valued over $10 million.

A "no" vote opposed authorizing the city to impose a real property transfer tax.

A simple majority was required for the approval of Measure E.

Election results

San Jose Measure E
Result		Votes	Percentage
Yes		120,969	53.46%
No		105,290	46.54%

Results are officially certified.

Source

Text of measure

Ballot question

The ballot question was as follows:

“

To fund general City of San José services, including affordable housing for seniors, veterans, disabled, and low-income families, and helping homeless residents move into shelters/permanent housing, shall an ordinance be adopted enacting a real property transfer tax including unrecorded transfers at these rates: EXEMPT transfers under $2,000,000 adjusted for inflation, $2,000,000 to $5,000,000 at 0.75%, $5,000,000.01 to $10,000,000 at 1.0%, and over $10,000,000 at 1.5%; generating approximately $70,000,000 annually, until repealed, with all money staying local?

”

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the San Jose City Attorney:

“ Measure E was placed on the ballot by the City Council and, if approved by a majority of the voters, would enact a real property transfer tax ('Transfer Tax'). The Transfer Tax is a proposed general tax which means the City of San Jose could use the revenue for any governmental purpose including, but not limited to, assisting the homeless and providing affordable housing. The proposed Transfer Tax is in addition to the existing real property conveyance tax (“Conveyance Tax”), also imposed on a transfer of real property, which is a special tax that is required to be used for certain specified purposes. The Transfer Tax would be imposed whenever a deed, instrument, or writing, whether recorded or not, transfers real property in the City of San Jose for consideration. Consideration means the amount paid for, or the value of, the transferred property and includes the amount of any debt and special assessments secured by the transferred property. The Transfer Tax would also apply to a transfer of ownership interests in a legal entity (e.g., a corporation, partnership, or limited liability company) that would be considered an ownership change of real property under State law. Payment of the tax is the responsibility of the parties to the transfer and may be paid by either party. Transfers under $2,000,000 would be exempt from the Transfer Tax. Transfers of $2,000,000 or more would be taxed at one of the following rates applied to the full value of the consideration: $2,000,000 to $5,000,000 at 0.75% $5,000,000.01 to $10,000,000 at 1% Over $10,000,000 at 1.5% For example, a transfer of real property where the value of consideration is $11,000,000 would be taxed at a rate of 1.5% on the entire $11,000,000. The tax owed would be $165,000. Beginning July 1, 2025, the exemption threshold of under $2,000,000 (i.e., $1,999,999.99) will automatically adjust based on a consumer price index every 5 years. The City Council may also increase the exemption threshold at any time, but in no event can the exemption threshold be less than $1,999,999.99. The Transfer Tax includes other exemptions as well including transfers involving gifts, inheritance, divorce, and bankruptcy, in certain circumstances. Measure E would also require annual financial audits and yearly reports of the revenue collected from the Transfer Tax. The City Council would also be required to appoint a community oversight committee to review expenditures ofTransfer Tax revenues. If approved, the Transfer Tax would be effective July 1, 2020 and would continue until repealed by the voters or suspended in whole or in part by the City Council. A 'Yes' vote is a vote to approve the Transfer Tax. A 'No' vote is a vote to reject the Transfer Tax. ”

Full text

The full text of the measure is available here.

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a vote of the San Jose City Council.

See also

Local measures

• Local measures in 2020
• Local property on the ballot
• City tax on the ballot
• Santa Clara County measures

California

• March 3, 2020 measures in California
• Local ballot measures, California
• San Jose, California

News and analysis

• State and local preemption conflicts
• Measures advancing national agendas

External links

Suggest a link

• Search Google News for this topic
• Santa Clara County Elections Office website