Long Beach Considered Transfer Tax to Shore Up Revenue

Long Beach City Council was presented with revenue options to compensate for declining oil tax revenues.

A transfer tax proposal modeled on Measure ULA was among the revenue options on the menu.

Transfer Tax Details

City staff proposed two options for the city council's consideration. The first was a transfer tax of $5.60 per $1000 of property value for all properties.

There was no maximum or minimum; the rate would apply to a $500,000 property the same as a $5 million property.

The second proposal would have introduced a two-tiered approach.

The first $1 million in value would have been taxed at $3.30 per $1,000, and the value above $1 million would have been taxed at $5.60 per $1,000.

Long Beach city staff estimate that the first option would generate $16 million annually, while the second option would generate $12 million annually.

Of course, as we have seen with Measure ULA, transfer taxes do not always meet expectations.

A study in Boston showed that transfer taxes can be a net negative. This is due to the chilling effects that transfer taxes can have on the market.

Take Action

Our BOMA/GLA Advocacy staff took swift action in educating Long Beach council members on the adverse effects a transfer tax can have.

The city council has decided not to pursue the option of a transfer tax, and no measure will be put on a future ballot at this time.

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