Please CLICK HERE to donate to the "No on Prop G" campaign - your support is crucial!
SFAR needs your help! We want to let you know about legislation currently in the works that will negatively affect REALTORS®, clients and the San Francisco housing market.
It’s called Proposition G. If passed, Proposition G would impose a tax of up to 24% on the total sale price of homes with 2 or more units and single-family homes with in-law units sold within 5 years of ownership. With the median home sale price in San Francisco over $1 million, homeowners may face up to $240,000 in taxes if they choose to sell their home. This tax will scare away middle-class homebuyers, drive up prices for new renters and tenants, and damage the housing market as a whole.
This is where we need your help. SFAR would like to visit your office during your weekly sales meeting and speak to you and your agents about the impact of Proposition G and the importance of opposing this ballot measure. We only need 5 minutes to explain what you and your agents can do to help. It is crucial that we get the right information to you and your agents.
CLICK ON THE IMAGE TO DOWNLOAD TALKING POINTS FOR NO ON G. Please share these with your clients and colleagues.
The San Francisco Association of REALTORS® is a professional trade association of more than 4,000 licensed real estate agents in San Francisco and the Northern Peninsula.
Our members abide by a strict code of ethics and have access to a wide variety of business services that are not available to non-REALTORS®. This gives them a competitive edge in the marketplace, enabling them to provide superior services to buyers and sellers of real property. Join us!
To address Proposition G, the additional transfer tax measure on the November 4, 2014 ballot, SFAR is releasing a new advisory for use until the election results are confirmed. A copy of this new advisory, which is entitled, "Advisory Re: Possible New Transfer Tax ("Proposition G"/November 2014 Ballot)," can be downloaded by clicking HERE.
The Proposition G Advisory essentially:
- References the existing transfer tax structure;
- Specifies the transactions Proposition G would impact (sales of residential properties containing 2 to 30 residential units, including single family homes with in-law units and tenancy in common interests, unless exempted);
- Identifies the Effective Date of the proposition if it were to pass
(January 1, 2015);
- Points out that, if passed, this proposition would apply its increase in transfer tax to deals in contract before the Effective Date that did not close by December 31, 2014;
- Sets forth in detail the new tax that the proposition would add to the existing transfer tax starting-from 24% of gross purchase/sales price during the first year of ownership to 14% during the 5th year of ownership;
- Summarizes the exemptions;
- Confirms the risk Buyers and Sellers face should Proposition G pass, and recommends that both Buyers and Sellers consult with a qualified real estate attorney with any questions; and,
- References the link to the text of Proposition G.
The advisory is designed for use until the election. Thereafter, if Proposition G is defeated, the Advisory would become moot and its use could be discontinued. If Proposition G were to pass, however, the Advisory should be used until replaced with a permanent advisory. (SFAR will use best efforts to issue a permanent advisory shortly after the election, if necessary.)
As always, it is important not to speculate with the parties to a transaction about whether a tax (or exemption to that tax) applies to them or not, whether a proposition, if passed, will withstand any possible later legal challenge or the like. As stated in this new Advisory, and many other Realtor® standard forms: "BROKERS/AGENTS CAN ADVISE ON REAL ESTATE TRANSACTIONS ONLY. FOR LEGAL OR TAX ADVICE, CONSULT A QUALIFIED ATTORNEY OR CPA." And, needless to say, since no one can predict the outcome of a public election with any certainty, it is strongly recommended that Realtors® decline to provide any predictions to Buyers or Sellers about the outcome of Proposition G.