The Half Moon Bay City Council is looking for ways to increase the affordable housing stock, but it likely won’t make much progress in doing so on the November ballot.
Last week the City Council reviewed survey results that asked voters about two possible ballot measures meant to increase affordability and services to Half Moon Bay. One was an annual parcel tax on homes left vacant for more than 120 days, or roughly four months per year. The idea was that a tax on so-called second or vacation homes would discourage buyers from purchasing or owning them, creating more housing stock available for full-time renters. City staff said the tax would have applied to 264 units and funded housing projects and workforce assistance programs. The proposed rate was set at $6,000 per year for single-family homes and $3,000 for condominiums.
To get a better idea of how voters would prioritize spending of additional city revenue, the poll also asked voters how they feel about a half a percent sales tax increase that would go to the General Fund and capital projects. Both measures were estimated to generate roughly $1.5 million annually.
FM3 Research, the firm hired by the city, surveyed 275 people from June 18 to July 6 through a series of phone calls, emails and text messages. Based on the survey data, it appeared voters are more divided on the general direction of the city and its finances compared to recent years. Most voters were not in favor of a parcel tax increase. While the sales tax increase fared slightly better, there wasn’t strong majority support for it either.
Traffic, drought and cost of living were the biggest concerns among those polled.
Participants were asked three times how they would vote on these measures. For the first round of questions on the home tax, 56 percent of respondents did not approve, compared to 40 percent who did. Just over twice as many were a definite “no” vote (31 percent) than definitely “yes” (15 percent). After the pros and cons were presented, 54 percent of voters still didn’t want the tax, while 44 percent approved of it. Because this is a proposed parcel tax with proceeds dedicated to a specific purpose, it would require a two-thirds vote of approval to be passed in the November election. Most opponents cited rising inflation and questioned an additional tax on owners already paying property taxes.
“Even though we do need housing, I also understand with the economy right now, not just in half Moon Bay, but in the state, coming out of the pandemic, I don’t think we’re ready for this,” Councilmember Joaquin Jimenez said.
Even among those who supported a parcel tax, there were questions surrounding it. One respondent asked if this applied to unsold or undeveloped properties, and what happens if someone is managing a house for a deceased family member.
For the sales tax, 58 percent of respondents approved of the increase when asked the first time, though 9 percent only “leaned yes,” meaning they weren’t fully sold. Forty percent said no, and 21 percent of that was a “definite no.” After the pros and cons were given, the total votes remained the same. The new parcel tax proposal comes as property taxes have reached an all-time high in San Mateo County. Forty-nine percent of “no” voters said taxes were already too high.
“This is something that could pass this November,” said Curt Below, a partner with FM3 Research. “But there is a lot of uncertainty there with a tentative starting spot.”
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