Victory Alert: Glendale City Council Rejects Proposed Transfer Tax
On April 30th at the Special Budget Meeting of the Glendale City Council, the Council rejected the concept of a transfer tax that the City staff had brought forward for consideration. In addition, the Council rejected several other proposed taxes, including a citywide business tax, and directed staff to pursue other ways to raise revenue by incentivizing economic development.
This is a huge victory for rental housing providers in Glendale! AAGLA’s government affairs team was very active by lobbying in advance of and during the meeting along with active participation from AAGLA members – this is what achieved this victory. We want thank all AAGLA members that attended the meeting and those that sent emails and made phone calls to Council members in advance of the meeting. Your voices were heard and succeeded in stopping this harmful policy from being implemented!!!
Here’s What Transpired at the Meeting
City staff introduced four main revenue enhancements for consideration: transfer tax, parcel tax, business license tax, and cannabis tax. The response from the Council members was overwhelmingly negative. Mayor Elen Asatryan and Council Members Vartan Gharapetian (newly on the City Council and endorsed by AAGLA) and Ara Najarian expressed significant concerns, notably about the proposed transfer tax, which lacked clarity and feasibility. Even Council Member Dan Brotman admitted to being confused over how the transfer tax would function.
Council Member Gharapetian made a crucial point when questioning why these tax increases were even on the agenda if there was a clear consensus against them. He, along with others, strongly advocated for better utilization of existing property taxes rather than imposing new financial burdens on property owners. This sentiment was echoed by Mayor Asatryan who, frustrated with the recurrent suggestions of unwanted tax measures by the city staff, stated she was not in favor of the transfer tax, parcel tax, or business tax, calling instead for more creative solutions to generate revenue without overtaxing residents and businesses.
The turnout from rental housing owners was significant with approximately 50 people attending and taking up all available seats. Several speakers, including AAGLA government affairs staff, provided public comments strongly opposing the transfer tax and newly proposed taxes. Statements from property owners highlighted the adverse effects these taxes would have on the willingness to invest and operate within Glendale, threatening the city’s economic vibrancy.
The decision by the Council to reject these proposed new taxes is a significant win for rental housing providers and the community at large in Glendale. It’s a testament to the power of collective action AAGLA government affairs team working together with our local owners as they shared their stories and opposition to these harmful policies. When local owners show up in force, we win!
Unfortunately, there will be four additional special meetings on the budget prior to the full budget being heard by the City Council on June 4th. Accordingly, it is critical that we remain vigilant as these additional meetings are held and AAGLA will keep our members informed if any other dangerous policies to rental housing providers are raised.
This article is for informational purposes only. If you have any questions regarding your property or specific tenancies and the requirements of any local law changes described herein, please consult with an attorney.