San Francisco Real Estate Tax

San Francisco Real Estate TaxBecause taxes are difficult to understand, I compesed a guidline to help my clients better understand San Francisco’s real estate tax.

San Francisco Real Estate Tax

San Francisco real rstate tax is an ad Valorem tax. This means that the tax is based upon the value of the property. The rate of the tax is determined by the San Francisco County Assessor and applied to the net assessed value of the property. In determining the assessed value, the purchase price is used as the baseline by the state assessor.

In the state of California, three categories of property are considered – the real, utility and personal properties. They also use three tax rolls in this state correspondingly – the secured, unsecured and the state-assessed or utility tax rolls. San FRancisco real estate taxes are referred to as real property tax and it’s basically made up with two amounts: maximum base rate, which is 1 percent and voter-approved overrides. The first, the 1 percent of the assessable value maximum tax rate, was established by the Proposition 13. This 1 percent rate could have tax rates in additional depending on the indebtedness level assigned to the owners in financing the voters’ allowed expenditures. This means that the 1 percent tax rate will be added with any tax rates assigned by the assessor in paying the infrastructures, school bonds and other public projects approved by the voter.

Once the assessment of the real estate or property value has been made, it might not increase for more than 2 percent every year. The assessment is usually made at the sale or possibly after the new project construction begins.  Furthermore it is important to note that the property value is assessed for tax purposes only.

Distribution of Collected of San Francisco Real Estate Tax

The 1 percent tax rate plus additional tax rates approved by the assessor are distributed in the following:

  • 34.27 percent goes to Public Works, Transportation and Commerce
  • 17.84 percent goes to Health
  • 14.41 percent goes to Public Protection
  • 12.26 percent goes to the Schools in the city
  • 10.96 percent goes to Human Welfare and Neighborhood Development
  • 6.88 percent goes to Finance and General Administration
  • 3.38 percent goes to Culture and Recreation

The real property tax (San FRancisco real estate tax) revenue in the city of San Francisco made up 22 percent of the city’s billions of budget each year.

Proposed Property Rate Increase in San Francisco Real Estate Tax

The San Francisco real estate tax or property tax rate in San Francisco is proposed to increase by 0.67 percent and will become $1.1718 for every $100 of the assessed value from the $1.164 for every $100 of the value assessed. There will be some changes in the allocation and distribution of the property tax to be collected and many programs and individuals will be benefited by this proposed property tax increase in the city of San Francisco.