Measure RE Begins April 1st in Culver City
About Measure RE
At the November 3, 2020 election Culver City residents voted to approve Measure RE. Measure RE establishes a marginal tax rate with four brackets, based on sales price or value, for the City's real estate transfer tax effective April 1, 2021. Either the seller or buyer may pay the real estate transfer tax during the real estate transfer or sale. If it is not paid, the seller and buyer are jointly and severally liable to the City for the payment of the tax.
Measure RE Ballot Measure Language
Shall the measure to maintain essential services, including deferred parks/facilities/street maintenance, addressing homelessness, after-school/senior services, and economic recovery, by increasing the one-time 0.45% tax on real property sales, adding 1.5% on amounts from $1,500,000 to $2,999,999, 3% on amounts from $3,000,000 to $9,999,999, and 4% on amounts $10,000,000 and above, except for sales under $1,500,000, affordable housing, and first transfer of new multi-family properties, and providing $6,000,000 annually until repealed, be adopted?
Property sold or conveyed on or after April 1, 2021 for more than $100.00 is assessed at the following marginal tax rates, based on the consideration or value of the property conveyed, including the value of any lien or encumbrances remaining thereon at the time of sale:
0.45% on amounts of $1,499,999 or less.
1.5% on amounts from $1,500,000 to $2,999,999.
3.0% on amounts from $3,000,000 to $9,999,999.
4.0% on amounts $10,000,000 and above.
Property sold before April 1, 2021 for more than $100.00 is taxed at the rate of $4.50 per $1000 of the consideration or value of property conveyed.
Why was Measure RE placed on the ballet in Nov. 2020? Because the City’s General Fund relies heavily on revenues such as shopping, tourism, hotels, dining/entertainment and the economic success of local businesses, the City is faced with a proposed FY 2020/2021 budget deficit of $16 million. Despite efforts to drastically reduce General Fund expenditures, no one knows how long the impacts of COVID-19 will continue to plague the City; because of this uncertainty, the proposed revenue estimates for FY 2020/2021 could vary from actual revenues received.
The Culver City City Council voted to place Measure RE on the November 3, 2020 ballot as a revenue measure that could help towards closing the gap in the City's finances.
It is estimated that Measure RE would generate approximately $6,000,000 per year. That revenue would go into the City's General Fund to use for any valid municipal purpose. The General Fund can be used for any valid municipal purpose such as: maintaining essential services; deferred maintenance on streets, parks and facilities like the Veterans Memorial Building; addressing homelessness in Culver City; after-school and senior services; and economic recovery from the COVID-19 pandemic.