Supervisors Hand Tax Measures to the Voters
Hotel and transfer tax increases will be on the San Francisco ballot
Minutes after the San Francisco Board of Supervisors officially approved a $6.5 billion budget for the coming fiscal year, progressive supervisors advanced a tax measure to the November ballot, promising that it would generate tens of millions of dollars a year in future revenue for the city.
Voters this fall will decide whether to raise the tax on property sales from 1.5 percent to 2 percent on properties valued between $5 and $10 million. The tax rate would be 2.5 percent for properties above $10 million.
The measure’s sponsor, Supervisor John Avalos, told the board Tuesday that his plan would generate $25 million a year for the city, which has grappled with deficits in each of the past several years.
A separate tax proposal, which would raise the tax on hotel rooms by 2 percent, to 16 percent, has already been approved by the board and will go to voters in November.
The Avalos proposal and the hotel tax were part of a package of four tax measures that had been sharply opposed by the city’s business groups, who say they cannot afford the levies in a weak economic climate. Mayor Gavin Newsom, who is running for lieutenant governor, has also criticized the tax proposals as he seeks to portray his tenure in City Hall as a period of fiscally sound governance.
"The board approval of a balanced budget today was prima facie evidence that we don't need taxes," said Tony Winnicker, the mayor's spokesman. "They should be the last resort, especially amid a recession and jobless recovery."
The two remaining tax measures were abandoned. Board President David Chiu had proposed a 1.995 percent tax on commercial rent over two years and Supervisor Ross Mirkarimi had proposed a 10 percent increase in the parking tax.
Avalos, Chiu and Mirkarimi agreed in negotiations Tuesday to only advance the transfer tax, they told the board.
There was some question of “the practicality of an effective full-court press around those revenue measures,” said Mirkarimi.
Chris Daly of District 6 was the only supervisor who opposed tabling the measures, which he called “smart.” The tax measures were necessary to the city’s sustained financial health, he said.
Daly said he didn’t think political support for one measure could be strengthened by tabling the others.
“I just disagree with that political analysis,” said Daly.
voltairesmistress
The "progressive" supervisors hope residents will be provincial in outlook and selfish by design. These tax increase measures appeal to anyone who wants others, but not themselves, to pay taxes. The hotel tax will hit visitors, and the real estate transfer tax will affect those selling 5 million dollar plus properties. And some voters will gladly comply, humming, "Not me, not me -- tax somebody else!"
This is not how a great city or a proud people governs itself.
Mr. G
No more taxes, until this BOS and Mayor stops spending, and starts cutting expenses I will not vote for any new taxes, enough is enough. These new taxes would only eventually add to the bloated payroll costs of the City. There is no revenue problem, there is a spending problem.