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Sacramento Mayor Kevin McCarty gives his first State of the City address on Monday, Oct. 20, 2025, at the B Street Theatre in Sacramento.<\/p>\n
HECTOR AMEZCUA<\/p>\n
hamezcua@sacbee.com<\/p>\n
Sacramento Mayor Kevin McCarty said Monday he would withdraw a measure from the November ballot that would have raised taxes on a small number of properties to generate revenue for housing and homelessness services.<\/p>\n
McCarty unveiled the initiative last year during his State of the City address as a way to fulfill what he described as the American Dream.<\/a> The tax rate was set to triple for \u201chigh value properties\u201d \u2014 which the mayor previously said exempted 95% of transactions<\/a> \u2014 to help first time homebuyers, renters who could end up homeless and the tiny homes intiative.<\/p>\n A city-sponsored poll found 51% of voters supported the referendum. McCarty said he required a higher margin of error before placing the initiative up for consideration.<\/p>\n \u201cThere\u2019s angst among the people of Sacramento for inflation,\u201d McCarty said in a phone interview. \u201cThis (survey was done) before the gas prices jacked up with the war.\u201d<\/p>\n Proposed ballot measure said a real property transfer tax would increase to 1% on transfers worth more than $1.5 million. The city would collect an estimated $9.3 million annually, which was welcome news for City Hall dealt with a budget deficit for three consecutive years. This year, the City Council will balance a $66.2 million budget deficit<\/a> by June.<\/p>\n A general tax measures requires an approval by a simple majority, but a special tax requires passing a two-thirds threshold.<\/p>\n The survey demonstrated residents had diverging views on what McCarty\u2019s ballot measure hoped to address.<\/p>\n Establishing tiny homes ranked extremely or very important for 49% of voters. Yet, providing financial assistance for first-time homebuyers \u2014 another core part of the referendum \u2014 drew just 38% of people ranking it as extremely important or very important.<\/p>\n Sacramento Association of Realtors also raised concerns about the measure. Some Realtors sited inflated revenue estimates and potential negative impact on much-needed housing production, according to The Sacramento Bee\u2019s previous reporting.<\/p>\n The survey also concluded residents felt \u201cambivalent\u201d about living in Sacramento, and a majority felt the city needed more funding. Asked if \u201cthings\u201d in Sacramento are headed in the right direction, 45% of voters said the city was on the \u201cwrong track.\u201d<\/p>\n Voters also ranked addressing homelessness, maintaining rapid 911 response times and protecting water quality as the three top priorities. McCarty said those issues aligned with the City Council\u2019s priorities as well.<\/p>\n \u201cThat is very reassuring,\u201d he said. \u201cWe\u2019re going to stay the course.\u201d<\/p>\n McCarty has banked on tiny homes<\/a> as a cost-effective way to offer seniors a temporary place to live. Sites in North Natomas<\/a> and south Sacramento will each contain 40 120-square-foot homes.<\/p>\n The proposed ballot measure would have cleared a path for more tiny homes, McCarty said. Still, he believed the council supports expanding those temporary structures. Last week, councilmembers approved expanding the number of miniature dwellings<\/a> at a homeless shelter on Roseville Road, with Councilmember Lisa Kaplan casting the sole opposing vote.<\/p>\n McCarty said he may revive this referendum in upcoming years. He\u2019s been having conversations with those opposed to the current proposal. \u201cThese conversations will always continue,\u201d he said.<\/p>\n This story was originally published March 30, 2026 at 2:37 PM.<\/p>\n Related Stories from Sacramento Bee<\/p>\n
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