BY NORAH SHEPPARD-HUTCHINS
Daily Post Staff Writer
If voters pass Measure N in Portola Valley, the sale of a home will be subject to a special “property transfer tax” of $10 per $1,000 of the property’s sale price.
The average home sale cost in Portola Valley is $4.29 million. Under Measure N, the potential buyer or seller would have to pay around $42,900 if the tax passes. The tax says it is up to the seller and potential buyer to determine how the tax is paid.
Along with the approval of the tax, this ballot measure would enact a town charter, which refers to a document that allows a town to enforce its own local laws, while being consistent with the U.S. and state constitution. Right now, the town is a general law town, which is where local laws on matters such as local elections, zoning and taxes are consistent with the state constitution and statutes.
The ballot argument in favor of Measure N says that if approved, the tax will help bring financial stability and maintain local autonomy and emergency reserves to the Portola Valley town government.
The argument was signed by former Mayor Gary Nielsen, Town Trails and Paths Committee Member Fred Leach, Town Historian Nancy Lund and residents Brenda Lane Munks and Rita Come Whitney.
Portola Valley is expected to experience an ongoing structural deficit in its general fund of $700,000 a year. A structural deficit occurs when government spending exceeds permanent tax revenues, and the government isn’t able or willing to cut its spending.
The amount of money and resources for town employees and emergency services, like wildfire prevention, has increased, according to Town Manager Darcy Smith. Smith said the city had to trim the city’s wildfire funding because of budget cuts.
The argument against Measure N was written by Finance and Audit Commissioner William Urban and argues that the town does not need to become a charter as the town’s local autonomy has never been compromised. Urban also argues that the tax would be inequitable across taxpayers.
“Only the 2-3% of residents selling properties each year would pay tax of $45,000 and up on an average-priced home sale, while the 97-98% of non-selling residents and renters get a free pass,” Urban said.
BY NORAH SHEPPARD-HUTCHINS
Daily Post Staff Writer
If voters pass Measure N in Portola Valley, the sale of a home will be subject to a special “property transfer tax” of $10 per $1,000 of the property’s sale price.
The average home sale cost in Portola Valley is $4.29 million. Under Measure N, the potential buyer or seller would have to pay around $42,900 if the tax passes. The tax says it is up to the seller and potential buyer to determine how the tax is paid.
Along with the approval of the tax, this ballot measure would enact a town charter, which refers to a document that allows a town to enforce its own local laws, while being consistent with the U.S. and state constitution. Right now, the town is a general law town, which is where local laws on matters such as local elections, zoning and taxes are consistent with the state constitution and statutes.
The ballot argument in favor of Measure N says that if approved, the tax will help bring financial stability and maintain local autonomy and emergency reserves to the Portola Valley town government.
The argument was signed by former Mayor Gary Nielsen, Town Trails and Paths Committee Member Fred Leach, Town Historian Nancy Lund and residents Brenda Lane Munks and Rita Come Whitney.
Portola Valley is expected to experience an ongoing structural deficit in its general fund of $700,000 a year. A structural deficit occurs when government spending exceeds permanent tax revenues, and the government isn’t able or willing to cut its spending.
The amount of money and resources for town employees and emergency services, like wildfire prevention, has increased, according to Town Manager Darcy Smith. Smith said the city had to trim the city’s wildfire funding because of budget cuts.
The argument against Measure N was written by Finance and Audit Commissioner William Urban and argues that the town does not need to become a charter as the town’s local autonomy has never been compromised. Urban also argues that the tax would be inequitable across taxpayers.
“Only the 2-3% of residents selling properties each year would pay tax of $45,000 and up on an average-priced home sale, while the 97-98% of non-selling residents and renters get a free pass,” Urban said.
In other places, they call this a “McMansions” tax. But I guess Portola Valley is too genteel for that description. But this tax will certainly come as a surprise to a homebuyer who discovers it on closing day. And it’s all because the little town government can’t live within its means. Don’t call it a “structural deficit,” that sanitizes it with a euphemism. The truth is, when you’re spending more than you’re taking in, it’s time to lay people off. It’s not pleasant, but it’s often necessary. Drop this tax and start firing people now.