Property Tax Rates - San Francisco
Proposition 13 established a maximum property tax rate of one percent (1%) of the assessable value of a property. This 1% may have additional tax rates added to it depending on the level of indebtedness assigned to property owners to finance voter authorized expenditures. In other words, the tax rate is 1% plus whatever tax rate is assigned to pay for school bonds, infrastructure, and other voter approved public projects.
Property Tax Dates To Remember
Important Dates for Property Owners:
Jan 1: Lien date – taxes for the next fiscal year attach as a lien on the property. The assessment of property applies as of 12:01 a.m. on the first day of January of each year.
Foreign Investment in Real Property Tax Act (FIRPTA)
If a seller is a foreign individual or corporation, buyers are required to withhold, report, and transmit to the IRS 10 percent of the total purchase price of real property. This is done under The Foreign Investment in Real Property Tax Act (FIRPTA). This act was enacted to ensure that foreign owners of real property paid tax due on sale of real property and didn't effectively "skip town".
California Withholding
In 2003 California amended it real property tax law such that 3.33% of the property SALE price must be withheld buy the buyer. This applies to all individual buyers unless an exemption is applicable. Fortunately, numerous exemptions exist. These exemptions are different depending on whether the seller is an individual or an "entity" such as a trust, corporation, LLC, etc. The exemptions are noted below:
Zoning Restrictions
How many people can live in your unit? Can you run your business from home? These questions are answered in part based on the zoning restrictions as they pertain to your property. Zoning restrictions exist throughout San Francisco and vary greatly by neighborhood. The buyer of a property is responsible for confirming the applicable zoning restrictions of that property. Sellers are required however to supply the buyer with copies of reports pertaining to use of property. Zoning restrictions do change though so every buyer is urged to inquire as to the current restrictions as well as any that are pending.
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