Dec 16, 2010: Updates from San Francisco Realtors Association in regards Proposition N:
| Further questions have arisen regarding the applicability of the new Proposition N transfer tax rates for properties selling for $5 million and more. In the original article published as part of REALTOR® Advantage Online on December 14 and the corrected article published on December 15, we indicated that the new rates will become effective on Friday, December 17, 2010. We also indicated that, according to the city, the new rates would only apply to transactions entered into after December 16. However, the person with whom we spoke was misinformed. The official position of the Office of the Assessor-Recorder is as follows: | |
| The trigger for the application of the new rates is the transfer (“vesting”) date.
Thus, for parties in real property purchase and sale contracts that close escrow on and after December 17, 2010, the new rates apply. For contracts entered and closed before the 17th, the old rates apply. |
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Old Posting below:
Due to the passing of Proposition N, effective December 17, 2010, for transactions of $5,000,000 or more, but less than $10,000,000, the transfer tax rate for the City and County of San Francisco will increase from 1.5 percent to 2 percent. For transaction of $10,000,000 or more, the transfer tax will be 2.5 percent.
(For transactions of less than $5,000,000 the transfer tax remains unchanged.)
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