Two ballot measures in St. Helena to tax property sales and transfers, expected to bring millions of dollars to the city, require a simple majority to pass; if either fails, the tax will not take effect.

Early results Tuesday evening suggest that might be the case.

The tax is expected to raise about $4.8 million annually for the city’s general fund. St. Helena currently faces a $7 million structural budget deficit and has explored various ways to close this gap in recent years.

But election night results for Measure A1, which would allow St. Helena to become a charter city and make it legally able to adopt real estate transfer taxes, show that with 40 percent of the total potential votes counted, only 47% voted to approve. the measure.

And just 43% voted in favor of the related Measure A2, which would enact the tax.

The Democratic press will rely on information provided by election officials before determining whether the measure passes or fails, because not everyone who received a ballot will have voted.

St. Helena City Council member Anna Chouteau said in an email that if the measures fail, the city will have to make budget cuts.

That situation would worsen if Measure B, which would allow a 56-room resort at Charles Krug Winery to proceed without the city’s standard review process, also fails.

“We will have to reduce our expenses while continuing to look for additional sources of revenue in order to maintain our infrastructure and offer the services that our citizens deserve and need,” said Chouteau.

Results from the next round of elections are expected Friday afternoon.

If Measure A passes, the tax would be applied when properties change hands, taxing a percentage of the sale price.

This would involve:

• A 1.5% tax on real estate sales of $1 million to $5 million.

• A 3% tax on sales over $5 million.

• An exception for sales less than $1 million, as well as transfers by will or inheritance.

You can reach Staff Writer Edward Booth at 707-521-5281 or [email protected].