Ordinance amending the Business and Tax Regulations Code to, for transfers occurring on or after July 1, 2026: halve the real property transfer tax rate from 5.5% to 2.75% when the consideration or value of the property conveyed equals or exceeds $10,000,000 but is less than $25,000,000, and from 6% to 3% when the consideration or value equals or exceeds $25,000,000; exempt from these reductions the transfer of single-family residences; and reduce the penalties for delinquent real property transfer taxes; and affirming the Planning Department’s determination under the California Environmental Quality Act.

This ordinance, effective July 1, 2026, significantly alters the Real Property Transfer Tax (RPTT) rates for high-value properties and reduces penalties for late payments.

Key Changes to Tax Rates:

• For properties valued between $10,000,000 and $25,000,000: The RPTT rate will be halved from 5.5% to 2.75%.
• For properties valued at $25,000,000 or more: The RPTT rate will be halved from 6% to 3%.
• Exemption for Single-Family Residences: These reduced rates do not apply to the transfer of single-family residences, regardless of their value.

Changes to Penalties and Interest:

• The penalty for delinquent RPTT will be reduced from 25% to 15%.
• An additional 10% penalty for taxes unpaid after 90 days will be removed.
• With limited exceptions, the 15% penalty will not apply if the tax deficiency is less than 10% of the total tax owed.
• Interest will continue to accrue at 1% per month from the date of delinquency.

The ordinance also affirms the Planning Department's determination under the California Environmental Quality Act (CEQA).