Photo: Brad Coy/Flickr
Jane Kim, a member of San Francisco’s board of supervisors, is putting forward a proposal in November to raise transfer taxes on luxury homes sold for more than $5 million. And if the home goes for over $25 million, then the fee will be a minimum of $750,000, normally paid by the sellers.
It’s a sort of Robin Hood plan to lessen wealth disparity in a city whose “homeless tent city” will be dismantled this week after being deemed a health hazard by The Department of Public Health.
Originally reported by Bloomberg News, if the proposal passes the additional generated revenue for the city would be $26.8 million, as calculated by Drew Murrell, citywide revenue manager at the San Francisco Controller’s Office.
“Kim’s proposal, which requires support from five other members of the board of supervisors to appear on the November ballot, would increase the tax on properties worth $5 million to $10 million by a quarter point, to 2.25 percent,” according to the Bloomberg News report. “The transfer tax on properties sold for $10 million to $25 million would also rise a quarter point, to 2.75 percent, and homes worth more than $25 million would be taxed 3 percent—a new bracket that increases the tax on such homes by half a percentage point.”
If it is indeed a plan to lessen the city’s wealth disparity and the proposal passes, then the follow-up question is simple: How will the new money raised from the rich be given to the poor?