MO 2001-056 to 2001-060 - Laserfiche WebLink

Home

City Council Finance Committee June 13, 2001 Meeting Highlights Committee Members: Mayor Young, Council Member Santos The Committee Meeting convened at 10:14 a.m. A list of those present is attached. 1. Continued Discussion of Proposed 2001 — 2002 Budget a) Real Property Transfer Tax Modifications Staff presented a summary of the proposed changes to the Real Property Transfer Tax (RPPT) that is currently levied in the amount of $6 for every $1,000 of real estate sale price. As described in the attached Memorandum dated June 13, 2001, the proposed changes would exempt the following sales transactions from the RPPT: ✓ Sale and Purchase of a Primary Residence in San Leandro ✓ Seismic Retrofitting ✓ First -Time Homebuyers ✓ Low Income Homebuyers ✓ Inherited Property ✓ Charitable Donations. The changes would be implemented by ordinance, a preliminary draft of which, is attached. Staff is in the process of developing various implementation rules and regulations, and plans to bring the Ordnance back to the Committee and the City Council following their development. At this time, staff is proposing that implementation will be made retroactive to January 1, 2001. Committee members raised questions about the scope of the ordinance, how the County handles certain transactions, and whether or not there should be a limit on the value of homes covered by the exemption. Staff proposes meeting with the Southern Alameda County Board of Realtors to clarify certain procedures, and to discuss the draft proposal. b) Utility Users Tax Relief for Low Income Families • Staff presented a Memorandum dated June 4, 2001 (attached) that describes the probable impact of implementing a Utility Users Tax Relief Program for City residents qualified under PG&E's CARE Program. • Eligibility for the CARE Program requires a family to have an income of less than 175% of the federal poverty level. Today, that means a maximum income of $21,250 for a 1-2 person household. • The estimated loss of revenue to the City resulting from implementation of the program for one year equals approximately $200,000. • Committee members endorsed the program and directed that staff ask PG&E to place information on the City's UUT relief program in bills to CARE qualified individuals. ■1