November 2020: Vote Yes on Prop I to Fund Affordable Housing by Taxing High-Value Real Estate Transactions

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The San Francisco League of Conservation Voters endorses Yes on Prop I. 

Prop I is a straightforward measure that doubles the existing real estate transfer tax on sales of properties in excess of $10 million.

  • The current tax rates are: 2.75% for properties of $10-25 million and 3% for properties over $25 million.

  • Prop I would increase those rates to: 5.5% for properties of $10-25 million and 6% for properties over $25 million.

Supervisors Preston, Haney, Mar, Ronen, and Walton are the sponsors of this measure, and they placed it on the ballot in anticipation of heightened investor interest in San Francisco real estate due to an expected COVID-19-related economic downturn. If a property is sold to the City or to an affordable housing developer, it is exempt from the tax.

Revenues from this tax go to the General Fund, so this measure needs a simple majority to pass. Although the Controller’s analysis calls this a volatile funding source, volatility is not a strong concern: this money goes to the general fund and is not earmarked for a specific project or program.

We urge you to vote Yes on I.