Voters will consider doubling transfer tax on high-value properties

Proposition I on this november’s ballot would double the transfer tax levied on properties worth $10 million or more. Transfer taxes are charged by the city when a property is sold and are usually paid by the seller. Right now, a 2.75% tax is levied on buildings worth $10 million to $25 million, and a 3% tax is levied on buildings worth more than $25 million. If voters were to approve this proposition, both of these taxes would double. Opponents argue that the tax would be bad for the city’s economy, hurt businesses, and cost construction jobs. Proponents say the tax will affect those who can afford it, and will raise money for important initiatives like partly paying landlords for rents their tenants can’t pay because of the coronavirus pandemic, and funding a social housing pilot program. "Civic" talked with measure’s author, Supervisor Dean Preston, and an opponent, Jay Cheng with the San Francisco Chamber of Commerce.