Will Santa Monica's Real Estate Transfer Tax Affect You?- Measure GS
The ballot measure called MEASURE GS has increased taxes on sales of commercial and residential real estate valued at $8 million or above in Santa Monica [1]. The groups and people behind Measure GS distribute brochures and postcards with the statement, "Only wealthy real estate investors will pay this tax," as a marketing strategy [1][6]. However, critics argue that this statement misleads people by suggesting that only wealthy investors will be affected by the tax, while in reality, the tax applies to anyone who sells or transfers a real estate property worth $8 million or more [6].
According to the proponents of Measure GS, the tax increase is necessary to fund expansion of the city's services and programs, including public educational programs, that have contributed to the high property values in Santa Monica [1]. However, critics argue that the tax increase of 833% on a small group of people is unfair [6]. Moreover, they question the rationale that the value of a real estate property worth $8 million or more is primarily due to city services, rather than its location or other factors [6].
It is important to note that Proposition SM, passed two years ago, increased the Real Estate Transfer Tax on residences valued at $5 million in Santa Monica from $3 per $1000 of real estate valuation to $6 per $1000 of real estate valuation to fund initiatives to address comparable problems. However, it is unclear whether this tax increase has resulted in any significant changes in crime, homelessness, or the administration of affordable housing in the city [10].
In summary, the groups and people behind Measure GS distribute brochures and postcards with the statement, "Only wealthy real estate investors will pay this tax," as a marketing strategy. However, this statement can be seen as misleading since the tax applies to anyone who sells or transfers a real estate property worth $8 million or more. While the proponents of Measure GS argue that the tax increase is necessary to fund the expansion of the city's services and programs, critics question the fairness of an 833% tax increase on a small group of people and the rationale that the value of a real estate property worth $8 million or more is primarily due to city services. It remains to be seen whether the tax increase will result in any significant changes in crime, homelessness, or the administration of affordable housing in Santa Monica [[1](https://votersedge.org/ca/es/election/
