San Francisco County officials are considering a significant adjustment to the real estate transfer tax, aimed at stabilizing the city’s budget while minimizing the impact on average homeowners. During a recent government meeting, Supervisor Chu introduced an amended proposal that would increase the tax rate for properties sold over $5 million, raising it from 1.5% to 2%, and for properties sold over $10 million, increasing it to 2.5%. This change is designed to generate additional revenue without affecting the majority of San Francisco residents, as properties below the $5 million threshold will remain untouched.

The proposal comes in response to the city's ongoing budget challenges and aims to provide a more stable revenue stream from the real estate sector, which has shown volatility in recent months. Notably, June saw a record spike in revenue from real estate transactions, highlighting the potential for increased tax income from high-value sales.

In addition to the real estate transfer tax, discussions also included a proposed 2% increase to the hotel tax. Analysis presented during the meeting indicated that this measure could potentially create jobs rather than lead to job losses, contrasting with other tax measures that have historically resulted in negative impacts on private sector employment.

The meeting underscored the importance of balancing revenue generation with economic efficiency, as officials seek to implement tax measures that support job growth while addressing the city’s financial needs. The proposed changes will be put forward for consideration on the November ballot, with hopes that they will garner support from both the public and stakeholders in the housing sector.