Prop G in SF, if you aren’t familiar with it, is a November 2014 ballot measure that will, if passed:
increase the total transfer tax for transfers occurring after December 31, 2014 (the specified “effective date” in the proposition is January 1, 2015) regardless of whether the underlying purchase and sale agreement was entered into by the parties beforehand. Its proposed added tax would be as follows:
For a sale during the 1st year of ownership: 24% of total gross sales price;
For a sale during the 2nd year of ownership: 22% of total gross sales price;
For a sale during the 3rd year of ownership: 20% of total gross sales price;
For a sale during the 4th year of ownership: 18% of total gross sales price; and,
For a sale during the 5th year of ownership: 14% of total gross sales price.
Properties held for 5 years or more prior to resale would not be subject to this additional tax.
If enacted, there would be few exemptions from this additional transfer tax
As you might imagine, we don’t support Prop G in SF and we will talk about why in the coming days and weeks. Now that we’ve shared our opinion, we’d love to hear yours. But we’d also remind everyone that in our experience, the best conversations are the most respectful ones. Although, as the real housewive’s franchise proves, trashy conversations are the funnest to watch.
SFAR, the San Francisco Association of Realtors, has published a new advisory form for buyers and sellers of real property (homes in all the various shapes and sizes this city imagines for them) in San Francisco. The form is available to members of the association, so if you are thinking of buying or selling in the city, please be sure to use someone qualified to represent your best interests. You should expect to see it in most disclosure packages in SF in the near future (or now).