Sacramento Mayor Kevin McCarty held his first State of the City address on Monday, and he used the occasion to unveil a new tax plan that could help get more people into permanent housing.

McCarty is proposing a real estate tax increase to help fund more housing projects like tiny home communities and downpayment assistance for first time homebuyers. He wants to get the tax increase on the 2026 ballot.

It's called the property transfer tax and is a fee paid each time a home is sold in Sacramento, with the amount based on a home's value. For example, a home that sells for $500,000 currently pays $1,375.

Last year, the tax raised more than $12 million although the annual amount is volatile due to market fluctuations.

The amount of increase hasn't been announced yet, but the MCCarty said

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