Why you must Vote No on Prop G | Red Bridge Group at Pacific Union
Stop the Housing Tax: Vote NO ON G
A punitive new tax on housing is certainly not the answer to San Francisco’s housing challenges. We need thoughtful solutions that create more housing of all types, not a poorly crafted measure that levies a new tax on housing and yet, provides no guarantees that any of the revenue raised will go to new affordable housing or any housing at all.
NO on G | WE NEED MORE HOUSING, NOT LESS
We need to bring more housing onto the market. But this measure creates an immediate incentive for homeowners to take secondary units, commonly known as in-law units, off the market or face a tax that could be $240,000 (or more) when they sell their properties.
NO on G | A MASSIVE NEW CHARGE WILL NOT LOWER HOUSING COSTS
San Francisco is facing a major housing crisis, but imposing an additional tax that makes housing more expensive 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 24% housing tax.
NO on G | POORLY CRAFTED OR OVERTLY POLITICAL
We need to bring all parties to the table to protect tenants from eviction. 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.
NO on G | READ THE HISTORY
Proponents say Supervisor Harvey Milk first proposed this idea. That is misleading. The measure Milk proposed only levied a fee on profits gained by owners, not on the sales price. Milk’s measure exempted the up to 50,000 single-family homes with a secondary (in-law) unit. He also exempted any owner over 63, understanding that many seniors use their homes as retirement nest eggs.
NO on G | TENS OF THOUSANDS WILL BE AFFECTED This tax is levied if you sell your home or property within 5 years of purchase. Since the average home turns over every 7 years, this tax will affect tens of thousands of San Franciscans.
NO on G | NO PROTECTIONS FOR EMERGENCIES 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. In the event of a person who loses their job and is forced to sell their home, this measure will force you to pay up to 2496 in housing taxes.
The Details of Proposition G
San Francisco currently collects a “transfer tax” on sales of most real property in the city. The tax rate is based on the amount for which the property is sold. The lowest to rate is 0.5% of property sold for $270,000 or less. The highest tax rate is 2.5% for property sold for $10,000000 or more.
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.
Prop G. would not apply in the following circumstances: single-family homes with no in-law uni; the property contains more than 30 residential units; the owner of the property has used it as a primary residence for 12 consecutive months immediately before the sale; sale at a loss; sale within one year of property owner’s death; property is deed-restricted affordable housing; property is new construction; property contains no more than two dwelling units and the seller applied on or before July 1st, 2014 for a building permit for a project with a total construction cost of $500,000 or more, and last permit was issued no more than a year before the sale of the property.