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R EAL E STATE Q&A by Gloria Darke
Should We Wait? Or Should We Hurry? Dear Gloria, In regards to the 3.8% tax you wrote about in your last article; are you suggesting that those of us who have a substantial gain on our primary place of residence hurry up and sell this year to avoid that tax? If so, there may be a flood of properties coming on the market. Nancy M., Portola Valley
Photo courtesy of Virginia Chang Kiraly
Roaring in the new year Parent volunteer Russell Kao leads students in Cynthia Chiu’s Mandarin language class at La Entrada School in the Chinese Dragon Dance, celebrating the lunar new year. Students also played drums and cymbals to accompany the dance, which was a parade around the Menlo Park school’s lunch area. The celebration took place on Jan. 30.
Menlo mayor joins supervisor race By Sandy Brundage Almanac Staff
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ewly minted Menlo Park Mayor Kirsten Keith on Saturday tossed her name into a crowded field of candidates for a seat on the San Mateo County Board of Supervisors. She became the sixth candidate for the District 4 seat that’s up for grabs since Supervisor Rose Jacobs Gibson terms out this year. The district includes Menlo Park, Redwood City, East Palo Alto, and unincorporated North Fair Oaks and Oak Knoll. Ms. Keith said that seats open up about every 12 years, since a supervisor can serve three fouryear terms, meaning that it’s a very long wait before the opportunity comes around again. “A lot of people were asking me and encouraging me, so I thought about it and decided to go ahead,� she said. She was elected to the Menlo Park City Council in 2010 and was appointed mayor by the coun-
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ELECT O N ( 12 (2 0 cil this year. The mayor serves as chairman of the council, but has one vote just like the other council members. She drew parallels between the issues facing the council — Kirsten Keith balancing the budget, transit, job growth, and economic development — and those challenging the county. “I think that translates very well.� Ms. Keith, a criminal defense attorney, has also served on the city’s planning and housing commissions, along with several county panels on women’s issues. She sounded excited about returning to the campaign trail. “I think it’s going to be really great.�
As for endorsements, Ms. Keith declined to announce any at this time. That enthusiasm will be needed, as no fewer than six candidates are now running for the seat. The field to date includes East Palo Alto councilmen Carlos Romero and David Woods, Redwood City Planning Commissioner Ernie Schmidt, Redwood City school board member Shelly Masur, and county education board trustee and Menlo Park resident Guillermo “Memo� Morantes. If any one of the candidates gets more than 50 percent of the vote during the June 5 primary, the election is over. Barring that, there will be a runoff election in November, making for a lengthy countywide campaign season. According to City Clerk Margaret Roberts, if Ms. Keith wins, the council could choose to appoint a member of the public within 30 days of her leaving office, or call a special election to fill the vacancy. A
Shelly Masur top fundraiser in election for supervisor Redwood City resident and school board member Shelly Masur is the top fundraiser so far in the election for the District 4 seat on the San Mateo County Board of Supervisors. Six candidates are running for the seat now held by Rose Jacobs Gibson, who is termed out this year. Ms. Masur took in $28,202, according to a campaign finance report for the last six months of 2011. Among her donors is supervisor and former sheriff Don Horsley,
who contributed $500. Candidate Guillermo “Memo� Morantes, a resident of Menlo Park and a member of the county Board of Education, reported total contributions of $37,329, but that includes a $25,000 loan to himself. Ernesto “Ernie� Schmidt, a Redwood City planning commissioner, raised $9,935, and East Palo Alto Councilman David E. Woods, $495, according to the report filed with the county Elections Office.
No reports were provided for East Palo Alto Councilman Carlos Romero or Menlo Park Councilwoman Kirsten Keith. Ms. Keith announced Saturday that she was running. A primary election is set for June, with a November runoff required if no candidate wins a majority. Ms. Jacobs Gibson, the current occupant of the seat, was appointed by the board in 1999, and elected in 2000, 2004 and 2008.
Dear Nancy, The tax is to take effect in 2013 and as I mentioned, like all government programs it is somewhat complicated. At first blush it would appear that many people who live in our area and have owned their homes for a long time would be subject to this tax. I met with some good friends and long time clients a while back who have lived in their house for over 30 years. They would like to move
some place where they don’t have the upkeep of a large garden and home to maintain. They would owe substantial capital gains and would want to buy a quality townhouse or condominium in this area to maintain a nice lifestyle. By paying an additional 3.8% it suddenly didn’t seem worth it. But doing some numbers on the back of the envelope, adding in the $500,000 deduction for a married couple, the enormous amount they put in over the years of remodeling and other deductions, it turns out they would owe an additional $36,000! While that is still extra dollars that wouldn’t need to go to the government, it doesn’t seem enough in the big scheme of things to disrupt your life. If you are going to sell in the next 1-3 years it would just make sense to get all your numbers together.
For answers to any questions you may have on real estate, you may e-mail me at gdarke@apr. com or call 462-1111, Alain Pinel Realtors. I also offer a free market analysis of your property.
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February 8, 2012 N The Almanac N 7