07/21/2026
Last night, the San Rafael City Council voted unanimously to advance a ballot measure raising the city’s property transfer tax from $2 per $1,000 to $10 per $1,000 (a 400% increase) despite weeks of detailed feedback from local constituents and housing professionals.
While everyone recognizes the ongoing financial pressures facing local governments, the structure of this proposal raises serious questions about economic foresight and fairness.
Here's why you should care:
🚨 San Rafael is already the only municipality in Marin County that chooses to levy a transfer tax. Five-folding it moves the city from a balanced regional standard (aligned with Petaluma and Santa Rosa) to an extreme baseline.
🚨 Traditionally, sellers cover this fee. At a 5x multiplier, market dynamics will force this cost to be split. On San Rafael’s median home price of ~$1.54M, the tax jumps from $3,079 to $15,397. That introduces an unexpected $7,500+ in out-of-pocket cash requirements for buyers—at a time when entry-level liquidity is already the biggest barrier to homeownership.
🚨 Unlike San Francisco or Oakland, which utilize tiered tax rates based on property value, this measure applies a flat rate across the board. The result? Someone purchasing a $900,000 starter home in San Rafael would pay double the tax rate of someone acquiring a $5,000,000 estate in San Francisco.
🚨 🚨 Why this matters beyond San Rafael🚨 🚨
Precedent travels fast. If an un-tiered, 400% tax hike passes here without friction, expect surrounding (I think Petaluma would probably try to do this right away) North Bay charter cities to take notice.
Funding public services is vital. However, placing a disproportionate financial burden on residents trying to build equity or secure their first home isn't fiscal policy—it's short-sighted and cruel.
Please share and please vote against this measure.