Board adopts consolidated 2010–11 budget, advances transfer tax to November ballot; business and parking tax measures tabled

The San Francisco Board of Supervisors approved a consolidated budget and salary ordinances for the City and County of San Francisco for the fiscal year ending June 30, 2011, following a roll-call vote on the second reading of the budget ordinances.

The action came after supervisors spent several hours debating a package of potential revenue measures to address a multi‑hundred‑million‑dollar structural shortfall. Supervisor John Avalos presented a proposal to raise the real property transfer tax on high‑value transactions, saying the measure would target very large real‑estate sales without affecting most homeowners. “This increase is not affecting everyday San Franciscans who own single family homes,” Avalos said.

Why it matters: The city has faced repeated multiyear deficits and deep cuts to services and staffing. Supervisors said revenue measures are needed alongside cuts to stabilize services the city provides.

What the board decided - Budget adoption: Supervisors voted to adopt the consolidated budget and salary ordinances for FY2010–11 (second‑reading roll call passed; the board recorded 10 ayes, 1 no on the second reading as recorded on the record). The ordinances were finally passed. - Transfer tax (Item 8): The board voted to place an amendment to the real property transfer tax on the November 2, 2010 ballot. Supervisor Avalos said the measure was estimated by the controller to raise about $26.26 million annually, and to target high‑value sales by increasing rates for properties sold above $5 million and $10 million. The motion to place the transfer tax on the ballot passed (vote recorded: 8 ayes, 3 noes). - Business payroll/gross receipts tax (Item 9): A separate proposal to overhaul the payroll tax and impose a gross‑receipts tax on commercial real property was tabled after President David Chiu moved to delay it in favor of the transfer‑tax measure. Motion to table Item 9 passed (vote recorded: 10 ayes, 1 no). - Parking tax/valet tax (Item 10): A proposal to raise parking and valet taxes was also tabled for further work; motion to table Item 10 passed.

Discussion highlights and next steps - Supporters, including Avalos and President Chiu, argued the transfer tax change would help stabilize revenue without hitting most homeowners. Avalos and others said revenue is required because “cuts only” budgets have already sliced deeply into services and city employment. - Opponents warned about potential impacts on commercial real‑estate activity and urged careful vetting. Supervisor Daly and others reviewed the history of prior attempts at business tax reform and legal challenges related to earlier split‑roll proposals. - The board left open further action on the payroll/gross‑receipts and parking proposals, instructing sponsors and staff to continue consultation and to return when there is broader consensus.

Votes at a glance - Consolidated budget and salary ordinances: Approved (final passage after roll calls; second-reading tallies recorded on the official record). - Real property transfer tax (place on November ballot): Approved (8–3). - Payroll/gross‑receipts business tax proposal (place on ballot): Motion to table approved (10–1); item tabled. - Parking/valet tax proposal (place on ballot): Motion to table approved; item tabled.

For the full record: the board conducted the roll‑call votes and public discussion during the July Board meeting.