Residents of East Palo Alto will decide this Tuesday, November 8, general election day in the state of California, whether or not to apply a tax on residential rental properties, specifically to the owners of these units.
Thus, the measure would increase the business tax for homeowners from 1.5 to 2.5 percent and eliminate the exemption for homeowners with five or fewer rental units.
It should be noted that the tax cannot be passed on to tenants.
The approximately $2 million annually that would be raised from this assessment would go toward funding affordable housing programs, helping tenants rent, and protecting local residents from displacement and homelessness.
A simple majority is required for the measure to pass.
There are specific exemptions to ensure proper targeting of the tax and they are for owner-occupied housing, affordable housing, and single rooms without a kitchen.
In 2016, Measure O, approved by more than 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 to the upcoming general election in California on November 8
