Real Estate Sales Tax – Prop N

Proposition N on the San Francisco November 2010 ballot.

This tax increase proposal would boost the tax on the sale of properties in San Francisco, paid by homeowners and businesses, by 33% to 50%. The tax increase would have to be paid even if the home or property was sold for less than what the person paid for it.

On commercial properties, this tax increase will end up being paid by business through higher rents and by their customers through higher prices.  For residential properties, this tax increase will add to the cost of owning a home in San Francisco at a time when we should be doing all that we can to help prospective homeowners realize their dream, not making it more difficult.  This increase would make San Francisco’s transfer tax one of the highest in the region and according to the San Francisco Controller, would have a significantly negative impact on local jobs.

In terms of the City’s budget, the property transfer tax is historically one of the most volatile revenue sources for the City.  Increasing our reliance on this volatile tax will result in more severe budget deficits during economic downturns when property sales dry up, as is currently the case.