The Monterey County Board of Supervisors voted 5-0 on Tuesday, June 9, to move forward on a transient occupancy tax measure in November, based on favorable survey results from a recent poll of registered voters. The numbers were not as favorable on a proposed property transfer tax measure designed to create more middle income housing.
The proposed TOT measure would raise the tax paid by hotel guests in the unincorporated areas of the county from 10.5 percent to 12.5 percent. The money would go into the general fund to pay for services.
The real property transfer tax, or RPTT, proposed by Supervisor Kate Daniels, which would have required a two-thirds vote, was only supported by 51 percent of registered voters who were surveyed in late April and early May. The number dipped below 50 percent after respondents heard negative information about the measure.
"It looks to be that the special tax measure is a hill that is too high to climb," Daniels said.
The RPTT needed two-thirds vote because the revenue would go into a special housing fund, specifically aimed at the "missing middle" of housing, middle income housing that does not qualify for subsidized funds. Measures that are used to fund general purposes only require 51 percent of the vote.
Daniels asked the other supervisors for one week, to hear from significant players in the real estate industry, among others, as to whether or not they would support such a measure for the same 3-percent tax on sales of luxury homes, or perhaps not significantly oppose it.
The vote was 5-0 for the additional week. The RPTT will come back at the next meeting on Tuesday, June 16.
Despite the 5-0 vote on that measure, there was more universal support for the TOT measure among supervisors, with some expressing doubts about putting two tax measures on one ballot.
Supervisor Luis Alejo said he favored only one measure on the ballot, the TOT, and noted that every tax measure on the June 2 ballot failed.
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