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“Certificate of Final Completion and Occupancy” means a certificate of final completion and occupancy or an amended certificate of final completion and occupancy as those terms are used in Section 109A of the Building Code, as may be amended from time to time.
“First Construction Document” means the first building permit, building permit addendum, or other document that authorizes construction of a Newly-Constructed Building, not including permits or addenda for demolition, grading, shoring, pile driving, or site preparation work.
“Labor Organization” means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.
“MOHCD” means the Mayor’s Office of Housing and Community Development, or its successor agency, department, or office.
“MOHCD Area Median Income” means the median income as published annually by MOHCD for the City and County of San Francisco, derived in part from the income limits and area median income determined by the United States Department of Housing and Urban Development, or its successor agency, for the San Francisco County metro fair market rent area, adjusted solely for household size, but not for high housing cost area.
“Newly-Constructed Building” means a building that has never before been used or occupied for any purpose.
“OLSE” means the Office of Labor Standards Enforcement, or its successor agency, department, or office.
“Qualified Investment Manager” means any of the following that manages or invests assets on behalf of one or more Qualified Pension Plans, as defined in this Section 1108.8(a):
(1) An investment adviser registered under the U.S. Investment Advisers Act of 1940, as amended from time to time, or an investment adviser exempt from registration pursuant to Section 203(l) or Section 203(m) of the U.S. Investment Advisers Act of 1940, as amended from time to time;
(2) An investment company registered under the U.S. Investment Company Act of 1940, as amended from time to time; or
(3) An insurance company pooled separate account of a state or District of Columbia regulated life insurance company.
“Qualified Pension Plan” means either subpart (1) or (2), as stated below:
(1) A pension plan that has all of the following elements:
(A) Constitutes a qualified trust under Section 401(a) of the Internal Revenue Code of 1986, as amended from time to time;
(B) Is either:
(i) A multiemployer plan collectively bargained and maintained by more than one employer and a Labor Organization; or
(ii) A plan collectively bargained and maintained by a Labor Organization; and
(C) Its beneficiaries may not decide individually whether to participate or share in the profits and losses of such plan’s investments; or
(2) An annuity plan that meets the requirements for the deduction of the employer’s contribution under Section 402(a)(2) of the Internal Revenue Code of 1986, as amended from time to time, and that has beneficiaries who are represented by a Labor Organization and the assets of which are managed without the direct intervention or control of the plan’s beneficiaries.
“Qualified Residential Rental Property” means a Residential Rental Property, whether or not the property is subject to a condominium map recorded with the County Recorder, that meets all of the requirements in subparts (1) through (4), as stated below:
(1) At the time of the transfer for which an exemption is claimed under this Section 1108.8, no less than 12% of the residential units on the property, which percentage shall be calculated by excluding any density bonus units permitted through Planning Code Section 206.3, California Government Code Section 65915, or any other density bonus program, are, or concurrently with such transfer become, subject to a Recorded Restriction that:
(A) limits the maximum household income for each residential rental unit to no more than 110% of MOHCD Area Median Income; and
(B) limits the maximum monthly rent for each residential rental unit to no more than one-twelfth of 30% of 110% of the MOHCD Area Median Income; and
(C) provides for the regulation, monitoring, and enforcement of the restrictions in this subpart (1) by a governmental agency; and
(D) has a remaining term of no less than 55 years from the date of the transfer.
(2) On or after June 3, 2014, received a Certificate of Final Completion and Occupancy for a Newly-Constructed Building.
(3) All on-site construction of the Newly-Constructed Building, from the date of the First Construction Document through the date of the Certificate of Final Completion and Occupancy for the Newly-Constructed Building, was performed by workers represented by a Labor Organization and paid not less than the Prevailing Rate of Wages as defined in Section 6.1 of the San Francisco Administrative Code, as amended from time to time, for such on-site construction work.
(4) At least one year before and through the date of the transfer for which an exemption is claimed under this Section 1108.8, one or more Qualified Pension Plans, either directly or through a Qualified Investment Manager, collectively held a $25 million debt or equity investment, directly or indirectly, in the single property being transferred, and each such investor maintained and enforced a Responsible Contractor Policy with respect to that investor’s portion of the $25 million investment.
“Recorded Restriction” means a document, agreement, or instrument, recorded with the County Recorder, that restricts the use of the property against which the document, agreement, or instrument is recorded.
“Residential Rental Property” means a property that may only be used to rent to residential tenants, including an onsite property manager, and excluding travelers, vacationers, or other similarly transient individuals, except that it may include: (1) up to 30% of the square footage of all floors other than the ground floor for non-profit space serving residents and/or the community, such as childcare centers, health clinics, or job training centers; and (2) any amount of square footage of the ground floor for non-residential space.
“Responsible Contractor Policy” means a policy that requires all on-site construction work be performed by workers represented by a Labor Organization.
(b) Exemption from Increased Tax Rate. As authorized by Section 1119, the tax rates imposed by subsections (e) and (f) of Section 1102 shall be reduced with respect to any deed, instrument, or writing that effects a transfer of an entire building that constitutes a Qualified Residential Rental Property, or an undivided interest in such entire building that constitutes a Qualified Residential Rental Property. For such transfers, the tax rate shall be $15 for each $500 or fractional part thereof for the entire value or consideration, including but not limited to, any portion of such value or consideration that is less than $10,000,000. If the exemptions in both Sections 1108.6(b) and this Section 1108.8
(b) apply with respect to any deed, instrument, or writing, the lower of the two rates in those two sections shall apply.
(c) Requirements for Exemption. Every person claiming the exemption under subsection (b), above, must meet all of the following requirements:
(1) Maintain all records necessary to prove that they are entitled to the exemption in this Section 1108.8;
(2) Obtain from OLSE a certificate confirming that the deed, instrument, or writing effects a transfer of a Qualified Residential Rental Property; and
(3) Submit the certificate under subsection (c)(2), above, to the County Recorder at the time such person submits the affidavit described in subsection (c) or (d) of Section 1111.
Failure to timely satisfy the requirements in this subsection (c) renders the transfer ineligible for the exemption.
(d) Operative Date. The exemption in Section 1108.8(b) shall apply to all deeds, instruments, or writings that effect transfers of Qualified Residential Rental Properties that are or have been delivered on or after the effective date of the ordinance adding this Section 1108.8, but on or before the sunset date in subsection (e).
(e) Sunset Date.
(1) The exemption in Section 1108.8(b) shall expire by operation of law at the end of the day on December 31, 2033, and shall not apply to any deeds, instruments, or writings that are delivered on or after January 1, 2034.
(2) Notwithstanding subsection (e)(1), above, with respect to a transfer of property that received a Certificate of Final Completion and Occupancy before the effective date of the ordinance adding this Section 1108.8, the exemption in Section 1108.8(b) shall expire by operation of law at the end of the day on June 30, 2029, and shall not apply to any deeds, instruments, or writings that are delivered on or after July 1, 2029.
(f) Non-Severability. If any part or application of this Section 1108.8 is found in a final decision by a court of competent jurisdiction to be invalid or unconstitutional, this Section in its entirety shall have no force or effect.
(g) Undertaking for the General Welfare. In enacting and implementing this Section 1108.8, the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury.
(Added by Ord. 225-24, File No. 240728, App. 9/20/2024, Eff. 10/21/2024)
(a) Definitions.
“Eligible Tenant” means a tenant to which the Port Commission conveys a leasehold interest in real property under the Port Commission’s jurisdiction, where such tenant was the tenant under a Prior Port Lease with respect to the same real property immediately preceding the effective date of the new leasehold interest, and the direct and indirect ownership interests in the tenant were identical under the Prior Port Lease at the time of termination and under the lease for which an exemption under this Section 1108.10 is being sought upon its effective date.
“Exempt Port Lease” means any deed, instrument, or writing pursuant to which the Port Commission conveys to an Eligible Tenant a leasehold interest in real property under the Port Commission’s jurisdiction, where such leasehold interest has an effective date that immediately follows the termination of a Prior Port Lease with respect to the same real property. For purposes of this Section 1108.10, real property is the “same real property” under a Prior Port Lease if the real property was subject to the Prior Port Lease immediately preceding the effective date of the deed, instrument, or writing for which an exemption under this Section is being sought.
“Prior Port Lease” means any deed, instrument, or writing pursuant to which the Port Commission granted a leasehold interest in real property under its jurisdiction with an effective date on or before December 31, 1979, without regard to subsequent amendments.
(b) Exemption. Any Exempt Port Lease with an effective date on or after November 1, 2024 and on or before December 31, 2034, shall be exempt from the tax imposed under this Article 12-C if the requirements for exemption in subsection (c) are satisfied.
(c) Requirements for Exemption.
(1) Except as provided in subsection (c)(2), every person claiming the exemption under subsection (b) must:
(A) Obtain from the Port a certificate confirming that the deed, instrument, or writing for which the person is claiming the exemption is an Exempt Port Lease; and
(B) Submit the certificate described in subsection (c)(1)(A) to the County Recorder at the time such person submits the affidavit described in subsection (c) or (d) of Section 1111.
(2) Notwithstanding the requirements in subsection (c)(1), every person claiming the exemption under subsection (b) for an Exempt Port Lease with an effective date on or after November 1, 2024, but prior to July 1, 2025, may do the following in lieu of the procedures described in subsection (c)(1):
(A) Obtain from the Port a certificate confirming that the deed, instrument, or writing for which the person is claiming the exemption is an Exempt Port Lease.
(B) By December 31, 2025, submit the certificate described in subsection (c)(2)(A) to the County Recorder, along with a request for a refund of the tax paid on, or the cancellation or reduction of any deficiency assessed with respect to, the transfer subject to the certificate. The County Recorder may authorize the Controller to refund these amounts, without interest, without the need for a refund claim.
(3) Failure to timely satisfy the requirements in this subsection (c) will render the transfer ineligible for the exemption under subsection (b).
(Added by Ord. 299-24, File No. 241084, App. 12/19/2024, Eff. 1/19/2025)
The tax imposed under this Article shall not apply where the deed, instrument, or other writing transferring title to real property between an individual or individuals and a legal entity or between legal entities results solely in a change in the method of holding title and in which the proportional ownership interests in the real property, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remains exactly the same before and after the transfer.
(As Sec. 1108(d), established by Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 28-95, App. 2/3/95; Ord. 20-09, File No. 081450, App. 2/5/2009; amended and redesignated as Sec. 1109 by Proposition W, 11/8/2016)
(Former Sec. 1109 set forth by Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; repealed by Ord. 20-09, File No. 081450, App. 2/5/2009)
The County Recorder shall administer this ordinance. On or before the fifteenth day of the month the Recorder shall report to the County Auditor the amounts of taxes collected during the preceding month pursuant to this ordinance.
(Ord. 315-67, App. 12/12/67; amended by Ord. 352-84, App. 8/8/84; Ord. 377-84, App. 8/31/84)
(a) The County Recorder shall collect the tax hereby imposed and deposit the same to the General Fund. The County Recorder shall not record any deed, instrument or writing subject to the tax imposed by this Article 12-C unless the tax is paid.
(b) A declaration of the amount of the tax due, signed by the party determining the tax or his or her agent, shall appear on the face of every document subject to tax hereunder which is submitted for recordation. The declaration shall include a statement that the consideration or value on which the tax due was computed was not exclusive of the value of liens or encumbrances remaining on the interest or property conveyed at the time of sale.
(c) With every document subject to tax hereunder which is submitted for recordation, there shall also be submitted a separate affidavit stating all relevant information that is necessary for the determination of the proper transfer tax. A form for such affidavit shall be prepared by the County Recorder. The affidavit form shall include the following notice: “NOTICE: Any material misrepresentation of fact in this affidavit is a misdemeanor under Section 1116 of the Real Property Transfer Tax Ordinance. Any person who makes such a misrepresentation is subject to prosecution for such offense.”
(d) If the deed, instrument or writing by which any lands, tenements, or other realty sold within the City and County of San Francisco is granted, assigned, transferred, or otherwise conveyed is not recorded with the County Recorder’s Office, the person who makes, signs, or issues such document or for whose benefit such document was made, signed, or issued, shall submit to the County Recorder an affidavit stating all relevant information that is necessary for the determination of the proper transfer tax, on the form described in Section 1111(c). Such affidavit must be filed within 30 days from the date the document effecting the transfer is delivered. Such affidavit must be filed regardless of whether any transfer tax is due or paid. Filing an affidavit that the County Recorder determines to be incomplete in any material aspect may be deemed to be a failure to file this affidavit for purposes of the statute of limitations in Section 1115.
(e) In accepting a document for recordation, the County Recorder may rely upon the declaration of the amount of tax due and upon the affidavit of relevant information accompanying the document if the County Recorder has no reason to believe that the full amount of the tax due has not been paid.
(f) Every document subject to tax hereunder which is submitted for recordation shall show on the face of the document, or in a separate document, the location of the lands, tenements, or other realty described in the document.
(a) Every person liable for the tax imposed by this Article 12-C shall keep and preserve records as may be necessary to determine the amount of tax for which the person may be liable, or whether the person is exempt from the tax. Upon request of the County Recorder, a person liable for the tax imposed by this Article 12-C shall produce such records to the County Recorder. Additionally, the County Recorder may order any person or persons, whether liable for the tax imposed by this Article 12-C or not, to furnish affidavits and produce all books, papers, documents, or any other records that the County Recorder believes may have relevance to enforcing compliance with this Article 12-C.
(b) The County Recorder may order the attendance before the County Recorder of any per- son or persons, whether liable for the tax imposed by this Article 12-C or not, whom the County Recorder believes may have information relevant to enforcing compliance with this Article 12-C.
(c) If the taxpayer does not maintain records that are adequate to determine liability under this Article 12-C, or following a request by the County Recorder fails to produce such records in a timely fashion, the County Recorder may determine the person’s liability based upon any information in the County Recorder’s possession, or that may come into the County Recorder’s possession. Such determination shall be prima facie evidence of the person’s liability in any subsequent administrative or judicial proceeding.
(d) The County Recorder may issue and serve subpoenas to carry out these provisions, and may adopt and implement necessary and appropriate audit procedures.
(Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)
(Former Sec. 1111.1 added by Ord. 377-84, App. 8/31/84; repealed by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)
(a) Except as otherwise provided in subsection (d) of this Section 1113 or as provided in Section 1113.1, the Controller shall refund or cause to be refunded the amount of any tax, interest, or penalty imposed under this Article 12-C that has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City, provided the person that paid such amount files a claim in writing with the Controller within the later of one year of payment of such amount or the date the tax was due. The claim must state: (1) the specific amount claimed to have been overpaid or paid more than once, or erroneously or illegally collected or received by the City; (2) the date of transfer; and (3) the grounds upon which the claim is founded, with specificity sufficient to enable the responsible City officials to understand and evaluate the claim.
(b) Claims for refund shall be made according to California Government Code, Title 1, Division 3.6, Part 3. The Controller shall furnish a form to be used for these claims. The Controller shall enter the claim in the register, and shall forthwith forward it to the City Attorney. The City Attorney is designated to take such actions on claims as authorized by California Government Code, Title 1, Division 3.6, Part 3, Chapter 2, except that the City Attorney's authority with regard to rejecting or allowing claims shall be as provided in this Section 1113. The City Attorney may reject the claim, and shall notify the claimant of such rejection. Except as provided in subsection (c), allowance or compromise and settlement of claims under this Section 1113 in excess of $25,000 shall require the written approval of the City Attorney and approval of the Board of Supervisors by resolution. The City Attorney may allow or compromise and settle such claims if the amount is $25,000 or less. No claim may be paid until the Controller certifies that monies are available from the proper funds or appropriations to pay the claim as allowed or as compromised and settled. If the City approves the claim, the City may refund the excess amount collected or paid, or may credit such amount toward any amount due and payable to the City from the person from whom it was collected or by whom it was paid, and the balance may be refunded to such person, or the person's administrator or executor. For purposes of this Section 1113, a claim shall be deemed to accrue on the later of the date the tax was due or the date the tax was paid.
(c) Notwithstanding the $25,000 limitation on the City Attorney’s authority in subsection (b) of this Section 1113, the City Attorney, with the approval of the County Recorder but without the approval of the Board of Supervisors, may allow or compromise and settle claims under this Section 1113, and suits for refund following the denial of claims under this Section 1113, for any amount up to the amount of transfer tax, penalties, and interest paid that exceeds the amount of transfer tax, penalties, and interest that would have been due on a transaction if the amount of transfer tax, penalties, and interest due had been calculated using the value of the real property on the date of the transaction as finally determined by the Assessment Appeals Board of the City and County of San Francisco plus statutory interest under Section 1113.2.
(d) The City Attorney, in the City Attorney’s discretion and upon good cause shown, prior to the expiration of the one-year limitations period, may waive the requirement set forth in subsection (a) of this Section 1113 that a taxpayer file a written claim for a refund in any case in which the County Recorder and City Attorney determine on the basis of the evidence that:
(1) an amount of tax, interest, or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City; and
(2) all other conditions precedent to the payment of a refund to the taxpayer have been satisfied.
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