An initiative to put a luxury real estate tax measure for unincorporated Monterey County on the November ballot is now dead, after it became clear it would not pass.
"I am here to report that we don't think we have the support that we need," said Monterey County Supervisor Kate Daniels during the Board of Supervisors meeting on Tuesday, June 16.
A week earlier the supervisors heard the results of a poll that showed voters in the unincorporated county would likely support a transient occupancy tax measure but they did not favor the real property transfer tax, RPTT, at least not enough for the required two-thirds vote.
The original RPTT as proposed would tax the sale of homes priced at $10 million and over, with the revenue going into a housing fund specifically targeted at facilitating the creation of housing for the "missing middle," middle income housing that does not qualify for subsidized funding. Because the tax would go toward a specific purpose, not the general fund, a two-thirds vote was necessary.
The supervisors agreed on June 9 to wait until the June 16 meeting to decide on the fate of the RPTT measure, in order to talk to representatives in the real estate industry and others about whether they would support a 3-percent tax on sales of single family homes priced at $10 million and up, with the money going to the general fund.
On June 16, Daniels said they didn't have the support, but that "not moving forward doesn't change the fact that we are in a serious crisis that needs attention."