Editor's note: This article has been updated to include the latest data on Measure GS provided by the City.

By Jorge Casuso

February 5, 2026 -- A local property transfer tax estimated to generate $50 million a year to help build affordable housing is at risk of being overturned.

Under a November ballot measure sponsored by the Howard Jarvis Taxpayers Association, Santa Monica's Measure GS -- which was approved by local voters in 2022 -- would be overturned two-years after the measure passes.

Measure GS, sponsored by former mayor Sue Himmelrich, is viewed as a key source of revenues to help replenish the City's Housing Fund that bankrolls the construction of affordable housing.

Opponents, including housing developers, have mounted unsuccessful efforts to scale back or eliminate the measure, which they contend is chilling Santa Monica's multi-family housing market.

The measure raised the transfer tax by $56 per $1,000 for Santa Monica properties that sell for $8 million or more to fund local schools, homelessness prevention and affordable housing projects.

As of February 2, the measure GS has generated a total of $79,339,200, with a total of $20 million paid to the School District, with another $10 million due following the upcoming close of the current Measure GS year on February 28, according to City data.

The balance of $49,339,200 is currently in the City’s Homelessness Prevention and Affordable Housing (HPAH) fund, with programs utilizing the funds in accordance with the text of the measure set to launch later this calendar year, officials said.

In the City of Los Angeles, where voters approved a similar ballot initiative in 2022, Measure ULA has so far generated more than $1 billion for affordable housing and assistance for low-income tenants.

The City Council there is contemplating countering the proposed Jarvis tax measure with a rival ballot initiative that would exempt apartments, condominiums, commercial and mixed-used properties from the transfer tax.

The LA tax -- commonly referred to as the "mansion tax" -- imposes a 4 percent transfer tax on the sale of properties between $5 million and $10 million and a 5.5 percent tax on those that sell for more.

Measure ULA has so far generated more than $1 billion for affordable housing and assistance for low-income tenants.

City officials did provide by deadline the amount the transfer tax has generated, and the agendas for Santa Monica's GS Advisory Committee do not include the data.

According to Cal Matters, "In the years immediately following the enactment of ULA, multifamily property sales did see a steep drop compared to those in other cities around the county."

In Santa Monica, a ballot initiative seeking to amend Measure GS by exempting the sale of multi-family housing failed to qualify for the 2024 ballot. The measure could be placed before voters in November.

Measure GS has also been tested in court, where an LA Superior Court judge ruled in favor of the City in a lawsuit filed in January 2023 by the California Business Roundtable seeking to void the transfer tax hike.

The plaintiffs argued the local measure violates the California Constitution's “single-subject” rule because it generates funding for two separate purposes -- housing and education.

The proposed constitutional amendment being circulated by the Jarvis Taxpayer Association raises the threshold to pass voter-proposed local special taxes from a simple majority to two-thirds of the vote.

It also prohibits voters from approving real estate transfer taxes other than the existing 0.11 percent authorized by the tax code.

More importantly for Santa Monica, the statewide measure "overturns all existing voter approved property-related taxes, including real estate sales and transfer taxes that do not comply with these requirements two years after the measure is enacted."

The Legislative Analyst and Director of Finance estimates the measure would lead an an annual loss of revenues to local governments totaling between $2 billion and $3 billion a year.

The measure would "predominantly" affect "certain charter cities," according to the official title and summary of the measure.

"Despite the voters clear intent, court-created loopholes have allowed special interests to pass billions in new and higher taxes, including real property transfer taxes greatly exceeding the statutory limits for most cities," according to the Attorney General's summary of the measure.