Shall the City increase its transfer tax on sales of real estate worth more than $5 million to 1.5% and reduce the tax by up to 1/3 on sales of residences where the seller installed solar energy systems or made seismic safety improvements?
I am going to vote yes for Proposition N. The proposition encourages residents to look towards tapping into solar energy to save on their electricity bills and create a safe environment against earthquakes. The City can also make some money off the increase in transfer tax to cover its budget deficit.
Why am I voting no?
If you want to encourage building owners to add solar energy or seismic upgrades there would be much better ways to do that than to wait until a building – is – sold.
This proposition simply holds a building owners feet to the fire at the time they go to sell their buildings; should they pay for solar or seismic updates or live with the tax? A building owner will crunch the numbers and make the best fiscal choice and that may or may not be these updates.
Another reason I disagreed with you here…
“The City can also make some money off the increase in transfer tax to cover its budget deficit.” Interesting. Why should just the building owners have to add to the coffers to attack the deficit? We as residents need to actively participate and ensure we stop spending what we don’t have. Voters here seem to want to help everyone so that they can feel good about themselves. Not enough of them stop to think about long term cost and responsibility that comes with that choice. Wake up a bond measure is not just paper – the piper must be paid in the end.
By the way – great site. 🙂