Will Ballot Measures Y and Z Cost You Anything? Questions and Answers on Benicia’s Proposed Transfer Tax
[Editor: in this article Mr. Golub is addressing only Benicia’s Measures Y and Z. For his take on Measure X, see here in his previous article. – RS] By Stephen Golub, Benicia resident and author, “Benicia and Beyond” column in the Benicia Herald, October 4, 2026
Questions that concerned Benicians might ask about ballot Measures Y and Z…
This November’s Benicia ballot Measure Z would establish a transfer tax for the sale of certain homes. If I buy or sell a typical, currently existing home, will I have to pay that tax if the measure passes?
No. Almost all currently existing Benicia homes are exempt from the tax, which will be established if Measure Z is approved by Benicians.
This is because the tax only applies to:
- a) new homes that will be built starting in 2027; or
- b) currently existing homes sold for $2 million or more, of which there are only a handful here since the average home price in Benicia is about $820,000.
But what if I want to sell a home worth over $2 million to a close relative? Or what if in the future I want to sell a home built after January 1, 2027 to that relative? Do either of us pay that tax?
No. The tax does not apply to sales or gifts of homes between parents and children, grandparents and grandchildren, siblings, spouses and domestic partners. (Certain affordable housing is also exempted.)
Why is the tax necessary?
Despite budget cuts, city government reorganization and other actions, Benicia has an anticipated annual budget gap of at least $7.5 million and perhaps nearly $11 million.
The Measure Z transfer tax will help close that gap in two ways:
- a) It will apply not just to residential properties, but also to commercial and industrial sales. In fact, if the transfer tax were already in place in recent years, it could have yielded millions of dollars from sales in the Benicia Industrial Park. More on this below.
- b) It will apply to the several thousand new housing units that will be built in Benicia in coming years, as mandated by state law or made possible by redevelopment of the Valero property.
But much potential new development, whether residential, commercial or industrial, is years away. Will Measure Z produce much revenue in the next few years?
For one thing, potential sales of existing Industrial Park properties could produce large sums of revenue in the next few years. If Measure Z were already in place late last year, Benicia would have pocketed a tax of $1,160,000 from the sale of a large parcel of land in the Industrial Park. Similar future sales are certainly a possibility.
In addition, Measure Z is about the future. It is about putting in place the revenue stream to help Benicia sustain police, fire, recreational, infrastructure and other services for our kids, grandkids and all of us in years to come, so our wonderful town can survive and thrive.
Fair enough, so what will the transfer tax rates be under Measure Z?
The tax is $4, $6 or $8 per $1,000 in sale price, depending on whether the price is under $2,000,000, from $2,000,000 to $9,999,999, or $10,000,000 or more.
Again, though, remember that the tax on residential properties only applies to currently existing homes that sell for $2 million or more, or to homes built after January 1, 2027.
There’s also a ballot Measure Y, right? What does that do?
Measure Y is necessary as a companion law for Measure Z. Measure Y establishes Benicia as a limited Charter City, a status necessary for the city government to set the proposed transfer tax rates under Measure Z. To introduce those rates, then, it is essential to vote Yes on both Measures Y and Z.
I’ve heard certain opponents claim that Measures Y and Z open the door for Benicia to increase the transfer taxes or tax additional properties or expand Benicia’s status as a Charter City in ways we might not like. Is that true?
No. Any of these changes would require new ballot measures that we all would vote on. And there are no plans to propose such changes in any event.
I’ve also heard certain opponents claim that becoming a Charter City or establishing transfer taxes is disastrous for cities. Is this true?
No. There are 25 charter cities in the Bay Area alone, some with transfer taxes higher than those proposed by Measure Z. Charter city status or transfer taxes have not driven away businesses or harmed their financial health. One Bay Area charter city, Vallejo, went bankrupt, but that was for unrelated reasons.
How can I gain more information about this issue?
One good place is Building Benicia’s Future site, at beniciasfuture.org.
So, as summed up at that site, if I own a Benicia home built before 2027 and it sells for under $2 million, I pay nothing. Do I have that right?
Yes.
Stephen Golub writes about democracy and politics, both in America and abroad, at A Promised Land: America as a Developing Country.
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