REVENUE & EXPENDITURE ASSUMPTIONS
DOCUMENTARY TRANSFER TAX
Description Documentary transfer tax revenue is based on the transfer of real property. When property is sold, the City receives $55 per $100,000 of the property sale value ($550 per $1 million). Documentary transfer tax revenue corresponds directly with the number of real estate transactions that occur in Irvine. Factors affecting property transfers are mortgage interest rates, new development, and turnover in commercial and residential property. Trend Documentary transfer tax revenue is highly correlated with the ebb and flow of local real estate development activity, with revenues that can be significantly volatile from year to year. Revenues are particularly influenced by large commercial property transactions. FY 2022-23 revenues are projected to decrease 23 percent compared to prior year due higher borrowing costs resulting in a decrease of the number of property sale transactions. Outlook For FY 2023-24 and 2024-25, documentary transfer tax revenue is estimated at $3.9 and $4 million. Revenue assumptions are projected to be relatively flat with temperate growth over the five-year period with the continued addition of development activity throughout the City.
FY 2023-25 Adopted Budget
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