In 1978, California voters passed Proposition 8, which amended the California Constitution to allow a temporary reduction in assessed value when the market value of a property has fallen below its factored base year value as of the January 1 lien date (a “Prop. 8 Reduction”). Because residential properties change hands much more frequently, California Assessors have access to enough information to understand what the market value of a residential property is for purposes of reviewing applications for Prop. 8 Reductions.
Continue Reading San Francisco Considers Reducing Commercial and Condominium Tax Assessments Pending Data on How the Pandemic has Impacted Property Values
San Francisco Tax Propositions on the November Ballot
San Francisco voters will confront a number of tax measures on the November ballot. These measures are summarized below.
Proposition F — Adjustment of Baseline Funding and Business Tax Changes
Current Law:
San Francisco imposes a number of taxes under the Business and Tax Regulations Code (the “SF Tax Code”) on businesses engaged in business within the City. Three general taxes—so called because the revenues from which go to the City’s General Fund—imposed by the City are (1) the Business Registration Fee, (2) the Payroll Expense Tax, and (3) the Gross Receipts Tax. Currently, the SF Tax Code includes a small business exemption from the Gross Receipts Tax for businesses with less than $1 million in gross receipts attributable to the City.
Continue Reading San Francisco Tax Propositions on the November Ballot
Plan for the Extra Cost: Increased Prop W Transfer Tax is in Effect
As we previously reported, on November 8, 2016, the voters of the City and County of San Francisco passed Proposition W (Real Estate Transfer Tax on Properties Over $5 Million) increasing real property transfer taxes. Effective December 27, 2016, the Real Property Transfer Tax is raised as follows:
- From the current rate of 2% to