Will the Real Property Transfer Tax directly impact property values?

For better or worse, home values have gone up dramatically in El Cerrito and in neighboring cities such as Berkeley and Albany—both of which are also charter cities that have a real property transfer tax. The real estate agent who served on the Charter Committee said during public meetings that the tax had not hurt the market in either of those cities. There’s no evidence that a RPTT has hurt the real estate market in the area. For a median priced home in El Cerrito in 2018, the tax would only equal about 1% of the sale price. Long time El Cerrito homeowners currently and historically have enjoyed the steadily increasing equity of what they initially paid for the homes.

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1. What is a charter city?
2. Why is El Cerrito considering becoming a charter city?
3. How will El Cerrito become a charter city?
4. When will residents vote on this measure?
5. What is a Real Property Transfer Tax or RPPT?
6. Are there other charter cities in the Bay Area?
7. As a homeowner, will I have to pay the Measure V tax every year?
8. Will I have to pay the Real Property Transfer Tax if I gift my home to a family member, place it in a Family Trust, or leave it to my children as inheritance?
9. What can the revenue be used for? Why is it not guaranteed for specific services or improvements?
10. Will we get any additional or increased services if Measure V passes?
11. Will the Real Property Transfer Tax directly impact property values?
12. Will the Real Property Transfer Tax negatively impact the proceeds from a sale of a home in El Cerrito?
13. Will being a Charter City increase the chances the City will go bankrupt?
14. Will Measure V cause rents to increase?
15. Will sales of commercial property also be subject to the tax?
16. Why did the City place Measure V on the ballot? Is it really about the Real Property Transfer Tax?