S
acramento Mayor Kevin McCarty announced a new property‑transfer tax during his first State of the City address. The fee, levied each time a home changes hands, would be raised only on high‑value sales—currently about 5% of transactions above $1 million—to generate an extra $8‑9 million annually. The tax, which brought in more than $12 million last year, would help fund tiny‑home communities, down‑payment assistance for first‑time buyers, and expand the city’s 1,700 shelter beds by roughly 500.

    McCarty said the revenue would offset federal cuts and stabilize the general‑fund deficit while addressing the growing homelessness crisis. “We still see too many unsheltered people on our streets,” he said, urging a shift in strategy.

    Housing advocates, including Niki Jones, welcomed the proposal but called for broader action. “It’s a public‑health crisis every day,” Jones said. “I hope the council supports this step toward transformative housing solutions.”

    The measure would appear on the 2026 ballot and requires voter approval. San Jose passed a similar tax in 2020.