S.F. Supervisor Proposes Doubling Transfer Tax For Bigger CRE Deals

San Francisco City Hall
San Francisco City Hall

San Francisco District 5 Supervisor Dean Preston will introduce a measure nearly doubling the city's transfer tax on commercial real estate deals of $10M or higher, Bisnow confirmed with his office Tuesday.

Preston expects to introduce the plan, which would end up on the November ballot if signed by four supervisors, in the next few weeks, along with new legislation for rent and mortgage relief from coronavirus-caused financial strain.

The proposal calls for increasing the transfer tax from 2.75% to 5.5% for sales of $10M or more and from 3% to 6% for sales of $25M or more, though sales to the city or a nonprofit housing developer would be exempt from the tax increase, according to Preston's office.

Revenues from the tax, which Preston's office estimates could generate between $100M and $150M per year, would go toward city efforts in promoting housing security.

Elected as a Democratic Socialist in November, Preston recently led calls for San Francisco's largest residential landlord to delay its sale of a 2,100-unit portfolio and avoid transferring so many units to market-rate developers.

The San Francisco Examiner first reported Preston's plans yesterday.

Continue reading this story with a free account

Log in or register
Related Topics: Dean Preston
Sign up for more articles like this
Subscribe to Bisnow's San Francisco Newsletters
Related Stories

With Occupancy Brimming, Investors Pile Into Bay Area Apartments

Stanford Pursuing $100M Fund For A 2M SF Expansion

Hines And Rialto Close Office Credit Fund At $1.1B

Oxford Properties' U.S. Investment Head On Why It's Buying Office Again — And Where

Stephen Curry Sells Planned HQ Site Near Warriors' Arena

Renovate Or Raze: K-12 Developers, School Districts Face Difficult Development Choices

Bouwinvest Expands International Real Estate Platform As Repricing Continues

Lone Star JV Buys 2M SF R&D Portfolio In Silicon Valley

In Booming Silicon Valley, Architecture Firm Revel Meets Clients Where They Are

Bluerock Affiliate Acquires Sunnyvale Office Hub For $330.7M

Chicago Firm Proposes 40-Story Apartment Tower In Mid-Market

Revolution Medicines Nearing Agreement For 700K SF Lease In Redwood City