Supes talk upping transfer tax

Increases in Rate of Real Property Transfer Tax Rate Proposed

Two supervisors, Aaron Peskin and Jake McGoldrick, have proposed increases in the rate of the city’s real property transfer tax. Both proposals are intended to leave the rate for less expensive properties unchanged while focusing on properties in the mid- to high- price range.

State law requires tax increases affecting real property to appear on the ballot and to be approved by a two-thirds vote of the electorate for passage. It is not known at this time whether either or both of the proposals will appear on the municipal ballot in November.

To provide a basis for comparison, set forth below are the current transfer tax rates, as well as those proposed by Supervisors Peskin and McGoldrick. Changes to the transfer tax ordinance currently in effect are underlined.

Current Rate Structure:

  • Over $100 and less than or equal to $250,000 = .50%
  • More than $250,000 and less than $1 million = .68%
  • Equal to or more than $1 million = .75%

Proposed Rate Structure (McGoldrick):

  • Over $100 and less than or equal to $250,000 = .50%
  • More than $250,000 and less than $1 million = .68%
  • Equal to or more than $1 million but less than $1.25 million = 1%
  • Equal to or more than $1.25 million but less than $1.75 million = 1.25%
  • Equal to or more than $1.75 million but less than $2 million = 1.5%
  • Equal to or more than $2 million = 1.75%

Proposed Rate Structure (Peskin):

  • Over $100 and less than or equal to $250,000 = .50%
  • More than $250,000 and less than $1 million = .68%
  • Equal to or more than $1 million and less than $2 million = .75%
  • Equal to or more than $2 million = 1.5%
  • (Tax Reduced on Transfers of Residential Property by Up to One Third If, After January 1, 2009, Transferor Has Installed Active Solar System or Made Seismic Retrofitting Improvements or Improvements Utilizing Earthquake Hazard Mitigation Technologies)
  • (Clarifies Application of Tax to Transfers of Ownership Interests in Legal Entities that Own Real Estate)

The Association’s board of directors has voted to vigorously oppose all proposed increases in the city’s real property transfer tax as an unwarranted financial burden on buyers and sellers of real property in the city.

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3 responses to “Supes talk upping transfer tax

  1. Interesting until I notced that is pretty old

  2. Great post, very interesting concept. You make a good point that all the factors need to come into play. Selecting a good property agent is most important for property management who helps you throughout the buying process and beyond to completion.

    Florida Property

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