Monday, September 27, 2010
UPDATE: BOMA San Francisco Opposes Proposition N - The Real Estate Sales Tax
Click here to view this video on YouTube
BOMA San Francisco OPPOSES Proposition N - the Real Estate Sales Tax - on the November 2, 2010 ballot.
The Real Estate Sales Tax (or Transfer Tax) increase proposal would boost the tax on the sale of properties over $5 million in San Francisco. The current rate is 1.5%. which doubled from .75% in 2008. See the chart below for more information. If passed, this rate would be the highest transfer tax rate in California.
On commercial properties, this tax increase will end up being paid by small businesses 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.
VOTE NO ON PROP. N! Please click here for BOMA SF-PAC's positions on San Francisco qualified local measures for the November 2, 2010 ballot.
Click here to visit the Economic Recovery SF (ERSF) website. ERSF is a coalition of San Francisco businesses that is concerned about the continuation of the economic recovery and the impact that new and increased taxes will have on the economic turnaround.