Homeowners Urged to Contribute to Muni’s Financial Rescue

The City of San Francisco is urging homeowners to support a parcel tax plan aimed at rescuing Muni, the city’s public transit system. If approved by voters in November, the tax would require most homeowners to pay a minimum of $129 annually.

Details of the Parcel Tax Plan

The tax proposal has been refined through negotiations between city officials and transit advocates, leading to a finalized version presented by Julie Kirschbaum, director of transportation at the San Francisco Municipal Transportation Agency (SFMTA). The new plan lowers rates previously suggested for apartment building owners while still implementing a cap on total tax contributions.

• Owners of single-family homes or condos smaller than 3,000 square feet will pay $129 annually.
• Homes between 3,000 and 5,000 square feet will incur additional charges of 42 cents per square foot.
• Properties larger than 5,000 square feet will be taxed at $1.99 per square foot.

Tax Structure for Different Properties

• Apartment buildings will have a base tax of $249 for up to 5,000 square feet, with additional square footage taxed at 19.5 cents.
• The tax for commercial properties starts at $799 for buildings up to 5,000 square feet, scaling up to a maximum of $400,000 for larger spaces.
• A tax cap of $50,000 is also included in the proposal.

Moreover, the update introduces rent pass-through provisions for owners of rent-controlled properties. They can pass through up to 50% of the parcel tax to tenants, capped at $65 per year.

Rationale Behind the Tax

This tax initiative aims to address a significant budget shortfall of $307 million, caused by decreased ridership following the pandemic and the loss of federal emergency funding. Without this new revenue, service cuts may become necessary.

The proposed tax will generate an estimated $183 million annually, a slight reduction from the initial projection of $187 million. $10 million of this revenue is earmarked specifically for expanding transit services.

Upcoming Steps

The next phase involves drafting formal legislation and initiating a signature campaign to secure a spot on the ballot. Stakeholders, under the guidance of Supervisor Myrna Melgar’s office, have reached consensus on the tax structure, with all details ready for documentation.

Support from the community is crucial for this financial rescue plan, as it seeks to secure the future of public transit in San Francisco.