On the November 4 ballot, San Franciscans will be asked to vote on Proposition G, a punitive new tax on housing that could levy as much as a 24% tax on the sale of a home! San Francisco already collects a “transfer tax” on the sale of most real property, with the level ranging from 0.5% to 2.5%. Prop. G would impose an additional 14-24% on residential properties with 2-30 units and single-family homes with in-law units if they are sold within 5 years of ownership. While Prop. G may have been designed to stop home “flipping,” it is so deeply flawed and riddled with loopholes that it will only make matters worse. In fact, large buildings are exempted from the measure! And there are no guarantees that any of the revenue raised will even be used for new affordable housing – or any housing at all.
Making housing in San Francisco even more expensive is not the way to make housing more affordable. Prop. G creates a new tax on homes sold in San Francisco—up to 24% of the total sales price—making it one of the highest taxes ever levied in San Francisco or any city.
Take a closer look at just who gets hurt if Prop. G becomes law:
- Renters Lose: New renters are not protected from the increase in prices driven by Prop. G.
- Seniors Lose: Their retirement nest eggs could be scrambled by this massive new tax.
- Residents of Large Buildings Lose: Because of politics or merely a slip up, the proponents exempted large buildings, making large buildings a target for exactly the kind of “flipping” the authors say they want to stop.
- Anyone Looking for a Home Loses: Get ready to pay a massive new tax if you are forced to sell within five years, with no exceptions for people who get sick, lose a job or are forced to move.
Prop. G is NOT the answer to San Francisco’s housing shortage. This is a serious threat to the overall housing market and all consumers. The real estate community is taking a firm stance of No on Prop G. And our parent company NRT is also making a $10,000 donation on behalf of Coldwell Banker to defeat the measure.
For more information about Prop. G, what it will mean for San Franciscans and to join the growing list of City residents saying NO to Prop. G, click here.