In light of a state budget that did less damage to city finances than predicted, Alhambra is dropping a plan to triple taxes on property sales.
City Finance Director Derek Hanway said a proposal to increase the documentary transfer tax paid by sellers is no longer necessary because the loss of revenue to the state is about $660,000. There had been predictions that it would be $1.25 million.
In May, the City Council gave preliminary approval to an increase in the tax from 55 cents to $1.65 for every $500 of property sold. Final action was delayed until Monday after the decision came under attack from the West San Gabriel Valley Assn. of Realtors and individual real estate agents. At a packed meeting, real estate agents told the council that the tax increase was selective, discriminatory and unfair because it targets only property sellers in order to benefit everyone.