This past November, San Francisco voters passed Proposition N with 68% of the voters voting in favor of a new property tax rate increase.
Will this have an adverse effect on our market? Some people seem to think so. Prospective sellers and businesses may not only opt to not to sell, the passage of this new rate would almost discourage a sale altogether.
Others site that the majority of property owners will NOT be effected by this increase in the least, sighting 99% of residential transactions fall under the $5M threshold and will not be impacted. What’s more, they have applauded Proposition N which would provide a progressive tax reform for multi-national corporations who have not been paying their fair portion of taxes.
This new tax will surely be a revenue source for the city, but by how much? In the last 10 years it has vacillated between $47M and $144M. Will the tax changes force it to increase or decrease? Considering our current economic climate, it will be interesting to see if this will pose a negative effect to our market.
What do you think?