League of Women Voters of California Education Fund
	San Francisco County, CA November 4, 2008 Election
	Proposition N Changing Real Property Transfer Tax Rates City of San Francisco Ordinance - Majority Approval Required Pass: 223,808 / 68.56% Yes votes ...... 102,621 / 31.44% No votes See Also: Index of all Propositions

Arguments For Proposition N

Arguments Against Proposition N

CLOSE THE LOOPHOLES, SUPPORT TAX REFORM, VOTE YES ON N During these tough economic times, many San Francisco homeowners, renters and small businesses are struggling with their tax burdens. Yet at the same time, a serious loophole in our real estate transfer tax is allowing multinational corporations to evade paying their fair share. YES ON N CLOSES THE LOOPHOLE The multinational real estate interests use shell companies and tricky accounting to game our tax system, costing the City tens of millions of dollars in lost revenue. Yes on N closes the loophole that allows them to shelter their transactions + creating a more equitable tax structure and saving essential services threatened by our massive deficit. YES ON N SUPPORTS PROGRESSIVE TAX REFORM Multi-national corporations rely on our transit, public safety and infrastructure services. Yet they are not paying their fair share of the costs of these services + leaving the burden to the rest of us. Yes on N is real reform that raises the real estate transfer tax on properties sold for $5 million or more. Small property owners and homeowners won't pay more + over 99% of residential transaction would not be impacted. YES ON N CREATES INCENTIVES FOR SOLAR AND SEISMIC IMPROVEMENTS Proposition N also contains incentives for property owners to make solar and seismic improvements to their property, by reducing the transfer tax when those types of improvements are made. This is good for our environment and for public safety. VOTE YES ON N Please join with San Franciscans united for fair, progressive tax reform. Vote YES on Proposition N. San Francisco Democratic Party Assessor-Recorder Phil Ting* Treasurer Jose Cisneros Board of Supervisors President Aaron Peskin San Francisco Planning and Urban Research Association (SPUR) San Francisco Firefighters Local 798 Sierra Club For identification purposes only; author is signing as an individual and not on behalf of an organization. Rebuttal to Arguments For We all support an equitable tax system but this measure is not just tax reform it is a significant increase in the tax on selling property. In the following year the City's own projections already show a budget shortfall of $250 million. This means that once again we are spending more than we have. Even in our own households we all know that we should not spend more than we have in our bank accounts + nor should the City. At a time when the economy is showing signs of slowing down, it is important not to discourage economic activity. Taxing more for property sales could possibly do just that. We should be taking actions that encourage a diverse and robust economy not raising taxes and potentially stifling that activity. The City already places significant burdens on our economy, we do not need another one at this time. Real reform we can all support means getting the City's financial house in order, developing a plan to control spending and addressing our long-term structural deficit. Supervisor Carmen Chu Supervisor Michela Alioto-Pier

The City has a spending problem not a revenue problem. Over the past several years the City's revenue has grown but our expenses have grown faster. This is why we face a budget deficit year after year. We don't need another tax; we need to fix the structural problems with our budget. The real state property tax is among the most volatile sources of revenues for the City. The amount of money the City receives from this tax can swing wildly. Over the past 10 years, we have seen it vary from a $47 million low to a $144 million high. It all depends on the economy, interest rates and other factors completely out of the City's control. Now we want to balance our budget on this volatile tax. That is a mistake. This tax increase might even decrease the amount of money the City takes in from its current property transfer tax. If this tax passes, businesses and individuals may choose not to buy or sell property because of the costs associated. We are in the midst of an economic downturn and we should be encouraging, not discouraging economic growth and investment so San Francisco can continue to thrive. Proposition N is a tax for no identified purpose. The money would simply go into the general fund and could be spent for any purpose, without any further input from taxpayers. This is the wrong tax at the wrong time. The City should be working to fix its structural budget problems, control spending and then if necessary go to voters with specific proposals if we need to raise taxes. Please join us in voting No on Proposition N Supervisor Carmen Chu Supervisor Michela Alioto-Pier Rebuttal to Arguments Against Contrary to assertions by opponents, Proposition N is not an effort to balance the city's budget. It is a straightforward, progressive reform measure that will ensure that city services are funded in the most equitable and fair manner possible. Proposition N closes tax loopholes that are being exploited by multi-national real estate corporations at the cost of tens of millions of dollars that should rightfully be funding vital services for San Franciscans. Proposition N ensures that huge real estates pay their fair share in real estate transfer taxes, so that homeowners and small businesses are not overly burdened. Proposition N only impacts properties worth more than $5 million, meaning the vast majority of homeowners and small property owners will be unaffected. 99% of San Francisco homeowners are not impacted by Proposition N Proposition N is broadly supported by a diverse group of San Franciscans, including the San Francisco Planning and Urban Research Association (SPUR), San Francisco Firefighters, San Francisco Democratic Party, the Sierra Club, Assessor-Recorder Phil Ting, and Treasurer Jose Cisneros. Please join us in promoting fair tax reform that relieves the burden San Francisco renters, homeowners, small businesses and small property owners. San Francisco Democratic Party Assessor-Recorder Phil Ting Treasurer Jose Cisneros Board of Supervisors President Aaron Peskin San Francisco Planning and Urban Research Association (SPUR) San Francisco Firefighters Local 798 Sierra Club