Investment Real Estate Services

Stop the Housing Tax – Vote No on G

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Why a Punitive New Tax on Housing is Not the Answer

On November 4th voters in San Francisco will be asked to vote Yes or No on Proposition G.

Prop. G imposes an additional 14 – 24% tax on residential properties with 2 – 30 units and single-family homes with in-law units, if they are sold within 5 years of ownership. The tax applies to the entire sale price of the property and is in addition to the existing transfer tax that is applied to residential property.

Who is Impacted by Prop G?

This tax is levied if you sell your affected home or property within five years of purchase. Since the average home turns over every seven years, this tax could affect thousands of San Franciscans.

Additionally, because the measure applies to properties with 2 – 30 units and fails to provide specific protections for homes with secondary units, an estimated 30,000 to 50,000 single-family homes with in-law units will be affected.

Prop. G will devastate everyday homeowners who face real-life emergencies and unexpected difficulties. The tax makes no exemptions for circumstances such as job loss, job transfer, death in the family, sale to a family member or financial hardship. If a homeowner loses their job and is forced to sell their home, this measure will force them to pay up to 24% or more in housing taxes.

Why Prop G Is Not the Answer?

As we are all aware, San Francisco is facing a major housing crisis. Tight supply and increased demand have resulted in some of the highest real estate prices in the nation.

Unfortunately adding an additional tax to the cost of housing makes no sense. While current owners will absorb some of these costs, much of it will be passed on to new renters and new owners. In the end, middle-class renters and homebuyers will pay for the housing tax.

Proponents of Prop G claim that the measure will prevent evictions of long-term tenants.

However, because of political backroom deals or simple ignorance, this measure leaves out over 40,000 residents in buildings with 30 or more units. If it is a good idea for some, why not all? We need smart policies, not backroom deals or last minute slip ups.

Another goal of Prop G is to utilize the funds collected through the transfer tax to fund affordable housing in San Francisco. The problem is, none of the revenue raised from Prop G is guaranteed to go towards affordable housing. It can all be diverted to other uses.

The Solution

We need to bring all parties to the table to create thoughtful solutions that create more housing of all types and protect tenants from eviction.

Let’s call on our elected officials do come together to create long-lasting solutions where everyone’s voice is heard.

 

I encourage you to Vote No on Prop G on November 4th.

 

 

 

 

 



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