Residents of East Palo Alto will decide this Tuesday, November 8, the day of the general election in the state of California, whether or not to apply a tax on residential rental properties, specifically on the owners of these units.
The measure would increase the business tax for landlords from 1.5 to 2.5 percent and eliminate the exemption for landlords with five or fewer rental units.
It should be noted that the tax cannot be passed on to tenants.
The approximately $2 million annually raised from this tax will go toward funding affordable housing programs, providing rental assistance to tenants, and protecting local residents from displacement and homelessness.
For the measure to be approved, a simple major is required for its approval.
There are specific exemptions to ensure proper targeting of the tax and are for owner-occupied housing, affordable housing and single rooms without kitchen.
In 2016, Measure O, approved by 77 percent of East Palo Alto voters, initiated the Gross Receipts Tax to fund affordable housing and prevent displacement.
You may be interested in: Guide for the first general election in California on November 8
