A proposed measure which would establish a stiff tax to penalize real estate speculators in San Francisco appears to be headed for the November ballot.
Designed by the San Francisco Anti-Displacement Coalition and sponsored by Supervisor Mar with the support of Supervisors Avalos, Campos and Kim (the four votes needed to place the measure on the ballot without gathering signatures), the measure would establish an “anti-speculation” tax of up to 24 percent on the sale of multi-unit buildings in San Francisco which have been held for less than six years.
The tax would be based on the resale price of the property with the graduated tax rate determined by the length of the hold. The proposed tax rates for buildings sold within five years of being purchased:
- Sale within one year: 24 percent
- Two years: 22 percent
- Three years: 20 percent
- Four years: 18 percent
- Five years: 14 percent
The tax would not apply to “single-family homes, condos, owner-occupied tenancies in common, properties not being sold at a profit, new construction, properties being turned into affordable housing, and buildings with more than 30 units.”