1 City Council Meeting: July 12, 2022 Santa Monica, California RESOLUTION NUMBER _____ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SUBMITTING TO THE VOTERS A MEASURE TO AMEND CHAPTER 6.96 OF THE
SANTA MONICA MUNICIPAL CODE TO ESTABLISH A THIRD TIER TAX RATE OF
FIFTEEN DOLLARS PER THOUSAND DOLLARS OF CONSIDERATION FOR REAL
PROPERTY VALUE TRANSFERRED IN EXCESS OF EIGHT MILLION DOLLARS,
ACCOMPANIED BY AN ADVISORY MEASURE ASKING WHETHER
POTENTIALLY INCREASED REVENUES FROM ESTABLISHING A THIRD TIER
REAL PROPERTY TRANSFER TAX SHOULD BE SPENT ON HOMELESS AND
MENTAL HEALTH SERVICES, PUBLIC SAFETY AND EMERGENCY RESPONSE
SERVICES, LIBRARY SERVICES, AFTER-SCHOOL PROGRAMS, TRAFFIC
SAFETY IMPROVEMENTS, AND TRANSITIONAL HOUSING AND SHELTERS,
AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY NOVEMBER 8, 2022, AND AUTHORIZING CITY COUNCILMEMBERS TO FILE
WRITTEN ARGUMENTS FOR OR AGAINST THE MEASURES AND DIRECTING
THE CITY ATTORNEY TO PREPARE IMPARTIAL ANALYSES OF THE
MEASURES
WHEREAS, on November 28, 1967, the City Council of the City of Santa Monica adopted Ordinance No. 761 (CCS), which established the Real Property Transfer Tax Ordinance of the City of Santa Monica (the “City Real Property Transfer Tax”), and set a real property transfer tax rate at $0.55 per $1,000 of consideration or property value transferred; and
WHEREAS, on August 13, 1991, the City Council adopted Ordinance No. 1596 (CCS), which, among other things, amended the City Real Property Transfer Tax to establish a real property transfer tax rate of $3.00 per $1,000 of consideration or property value transferred; and
2 WHEREAS, on November 3, 2020, the voters approved Measure SM, which established a Second Tier Tax Rate of $6.00 per $1,000 of consideration or property value transferred for all sales or transfers of $5,000,000 or greater; and WHEREAS, many residents live in the City of Santa Monica because the City invests in community priorities, offers extensive services and programs that substantially enhance the quality of life of its residents; and
WHEREAS, an additional locally-controlled revenue source is needed to restore and enhance Santa Monica’s essential city services; and WHEREAS, establishing a new Third Tier Tax Rate of an additional $15.00 per $1000 of consideration or property value transferred, which would apply solely to the amount of consideration or value in excess of $8,000,000, would partially fill the revenue gap created by COVID-19 and help restore and enhance Santa Monica’s essential city services; and
WHEREAS, a number of charter cities have real property transfer taxes that exceed the proposed Third Tier Tax Rate; and
WHEREAS, on average over the last four calendar years and through May 2022, approximately 5% of sales and transfers in the City involved properties with a valuation of $8,000,000 or more; and
WHEREAS, the County of Los Angeles (“County”) and the City have entered into a binding agreement to administer the Second Tier Tax; and WHEREAS, the County currently applies the City Real Property Transfer Tax to unrecorded corporate transactions when a change of control under Revenue & Taxation Code § 64 is reported to the County as legally required; and 3 WHEREAS, the County currently administers a progressive real property transfer tax for Culver City that applies different incremental tax rates according to the amount of the total transaction; and
WHEREAS, the revenue from the proposed increase to the City Real Property Transfer Tax may be used to fund general governmental services, such as: (a) services to address homelessness and mental health; (b) public safety and emergency response teams to address safety issues on City streets and in parks, (c) the reopening and staffing of all public libraries, (d) after-school and post-COVID recovery programs for public school children, (e) traffic safety improvements around schools, including crossing guards, and (f) transitional housing and shelters as provided in an accompanying advisory measure; and
WHEREAS, under applicable law, to be approved the City Council of the City of Santa Monica must present a proposed increase to the City Real Property Transfer Tax to the electorate of the City of Santa Monica for adoption by majority vote of the electorate; and
WHEREAS, pursuant to California Elections Code Section 10403, the City Council has previously requested that the County of Los Angeles consent and agree to the consolidation of all aspects of a General Municipal Election with the Statewide General Election scheduled for Tuesday, November 8, 2022, for the purpose of electing members of the Santa Monica City Council, the Santa Monica Rent Control Board, the Santa Monica-Malibu Unified School District, and the Santa Monica College Community College District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA 4 DOES RESOLVE AND PROCLAIM AS FOLLOWS:
SECTION 1. At the General Municipal Election called for November 8, 2022, the following measure shall be submitted to the qualified electors of the City of Santa Monica:
MEASURE " ":
Shall the measure to enhance the City of
Santa Monica’s general governmental
services by increasing the one-time tax
on real property sales over $8 million,
and establishing an additional
incremental tax of $15.00 per $1000 of
the value in excess of $8 million,
excepting transfers: per State law,
involving tax-exempt charitable
organizations, newly constructed
residential properties, owner-occupied
residential housing, and certain ground
leases; providing an estimated $6-15
million annually until repealed, be
adopted?
YES ________
NO _________
SECTION 2. At the General Municipal Election called for November 8, 2022, the following advisory question shall be submitted to the qualified electors of the City of Santa Monica:
MEASURE " ":
ADVISORY VOTE ONLY: If the
“Comprehensive Real Property Transfer
Tax Measure” is enacted, should its
additional revenue be used to fund: (a)
services to address homelessness and
mental health; (b) public safety and
emergency response teams to address
safety issues on City streets and in
YES ________
NO _________
5 parks, (c) the reopening and staffing of
all public libraries, (d) after-school and
post-COVID recovery programs for public
school children, (e) traffic safety
improvements around schools, including
crossing guards, and (f) transitional
housing and shelters?
SECTION 3. The City Clerk shall file a certified copy of this resolution with the Board of Supervisors and with the county election department of the County of Los Angeles.
SECTION 4. The City of Santa Monica recognizes that additional costs may be incurred by the County by reason of the addition of these measures to the ballot and agrees to reimburse the County for any additional costs.
SECTION 5. The City Clerk shall transmit to the City Attorney, in accordance with applicable law, copies of both measures. The City Attorney shall prepare an impartial analysis of the measures, which shall not exceed 500 words in length each. The impartial analyses shall be filed by the date set by the City Clerk for the filing of primary arguments. ln accordance with applicable law, not less than 10 calendar days before the City Clerk submits the official election materials for printing, the City Clerk shall make a copy of all applicable elections materials available for public examination in the City Clerk's office. 6 SECTION 6. The City Council authorizes its members, as follows, to file written arguments for or against the measures described above, which are contained in Exhibit 1 (Transfer Tax Measure) and Exhibit 2 (Transfer Tax Advisory Measure), which Exhibits are incorporated by reference herein:
Transfer Tax Measure
FOR:
AGAINST:
Transfer Tax Advisory Measure
FOR:
AGAINST:
All written arguments filed by any person in favor of or against any measure, including any rebuttal arguments, shall be accompanied by the names and signatures of the persons submitting the argument as required by applicable law, and any names, signatures and arguments may be filed until the time and date fixed by the City Clerk in accordance with applicable law, after which no change may be submitted to the City Clerk unless permitted by law.
SECTION 7. The City Clerk shall cause the text of the measures, which is contained in Exhibit 1 (Transfer Tax Measure) and Exhibit 2 (Transfer Tax Advisory Measure), together with the City Attorney impartial analyses, and any arguments for or against the measures, as well as any rebuttal, to be mailed to all qualified voters with the sample ballot. In addition to other notices and publications required by law, the City Clerk, not less than forty (40) days and not more than sixty (60) days before the General Municipal Election, shall cause the 7 text of the measures to be published once in the official newspaper and in each edition thereof during the day of publication. The City Clerk is authorized to give such notices and to fix such times and dates as are required by law or which are appropriate to conduct properly the election.
SECTION 8. The provisions of Resolution Numbers 11425 and 11426 are referred to and incorporated into this resolution for more particulars concerning the conduct of the General Municipal Election to be held on November 8, 2022, and in all respects the election shall be held and conducted as provided for by applicable law. The City Clerk is authorized and directed to procure and furnish any official ballots, notices, printed materials and all supplies or equipment that may be necessary in order to properly and lawfully conduct the election.
SECTION 9. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
______________________
DOUGLAS T. SLOAN
City Attorney
Exhibit 1 – Text of Transfer Tax Measure
Exhibit 2 – Text of Transfer Tax Advisory Measure