107
38-EN-M24-CP107
Legal Text – Proposition C
square feet of gross oor area served by such areas.
(b) Converted Residential Property.
(1) For purposes of this Section 1108.7, “Converted Residen-
tial Property” means a property or portion thereof that has received a
First Certicate of Occupancy following conversion from a Nonresiden-
tial Property to a Residential Property, including conversions involving
the demolition of Nonresidential Property to construct new Residential
Property, and that meets all of the following requirements for such
conversion:
(A) received a Final Approval before January 1, 2030;
(B) a Qualifying Certicate was requested with respect
to the property or portion thereof on or after the effective date of this
Section 1108.7, but before January 1, 2030;
(C) within three years of the later of receiving Final
Approval or the effective date of this Section 1108.7, but not before the
effective date of this Section, received a First Construction Document;
and
(D) at the time of the transfer for which the exemption in
this Section 1108.7 is claimed, the square feet of gross oor area of the
improvements on the property divided by the lot area of that property is
at least one.
(2) New square feet of Residential Property gross oor area
in excess of the square feet of gross oor area of the original Nonresi-
dential Property shall constitute Converted Residential Property only
up to the new square feet of gross oor area that equals 10% of the
square feet of gross oor area that was converted from Nonresidential
Property to Residential Property.
(3) For demolitions of Nonresidential Property to construct
new Residential Property, “Converted Residential Property” includes
only the square feet of gross oor area of Residential Property in the
new building that exceeds the square feet of gross oor area of Residen-
tial Property in the demolished building, up to a maximum square feet
of gross oor area of Converted Residential Property equal to the total
gross oor area of Non-Residential Property in the demolished building
plus 10%.
(c) Exemption from Tax. Any deed, instrument, or writing that
effects a First Transfer of Converted Residential Property, up to the
rst 5,000,000 square feet of gross oor area of Converted Residential
Property, shall be exempt from the tax imposed under this Article 12-C,
except as otherwise provided in this Section 1108.7. For purposes of
this subsection (c), the “rst 5,000,000 square feet of gross oor area”
shall be determined in the order that the Planning Department receives
each request for a Qualifying Certicate and shall be aggregated
across all Qualifying Certicates issued and outstanding. If a deed,
instrument, or writing effects a transfer of property only a portion of
which is a First Transfer of Converted Residential Property, or only
a portion of which is within the 5,000,000 square foot limitation, the
tax shall apply to the proportion of the consideration or value that the
square feet of gross oor area transferred that is not a First Transfer
of Converted Residential Property or that is not within the 5,000,000
square foot limitation bears to the total square feet of gross oor area
transferred, with the rate in Section 1102 determined based solely on
that proportional consideration or value. Land associated with gross
oor area qualifying for the exemption in this subsection (c) shall also
be exempt in the proportion that the square feet of gross oor area
transferred that is exempt under this subsection (c) bears to the total
square feet of gross oor area transferred.
(d) Requirements for Exemption. Every person claiming the
exemption under this Section 1108.7 must do all of the following:
(1) Request, at any time after Final Approval and in the
form and manner required by the Planning Department, a Qualifying
Certicate from the Planning Department. At any time after receiving
a Qualifying Certicate, a request to conrm or adjust the square feet
of gross oor area that is proposed to qualify as Converted Residential
Property may be submitted to the Planning Department in the form
and manner required by the Planning Department. Any increase in the
square feet of gross oor area requested under this subsection (d)(1)
that exceeds the qualifying square feet of gross oor area stated on the
Qualifying Certicate or any amendment thereto shall qualify for the
exemption in this Section 1108.7 only to the extent that the 5,000,000
square foot limitation in subsection (c) has not been exceeded at the time
the Planning Department approves the requested increase.
(2) After receiving the First Certicate of Occupancy and in
the form and manner required by the Planning Department, request an
Exemption Certicate from the Planning Department for each transfer
for which the person intends to claim the exemption in this Section
1108.7. Any increase in the square feet of gross oor area requested
under this subsection (d)(2) that exceeds the qualifying square feet of
gross oor area stated on the Qualifying Certicate or any amendment
thereto shall qualify for the exemption in this Section 1108.7 only to
the extent that the 5,000,000 square foot limitation in subsection (c)
has not been exceeded at the time the Planning Department issues the
Exemption Certicate.
(3) For each transfer for which the exemption in this Section
1108.7 is claimed, submit the Exemption Certicate to the County
Recorder at the time such person submits the afdavit described in
subsection (c) or (d) of Section 1111.
(4) Failure to timely satisfy the requirements of this
subsection (d) renders the transfer ineligible for the exemption in this
Section 1108.7.
(e) Effect of Exemption on Other Taxes. Any tax exempted under
this Section 1108.7 shall be deemed to have been paid for purposes of
Section 954(d) of Article 12-A-1 of the Business and Tax Regulations
Code.
(f) Regulations. The Planning Department and the County
Recorder may each issue rules, regulations, and interpretations of this
Section 1108.7 consistent with the provisions of this Section and Article
12-C of the Business and Tax Regulations Code as may be necessary or
appropriate to carry out and enforce the exemption in this Section.
(g) Sunset Date. This Section 1108.7 shall expire by operation
of law at the end of the day on December 31, 2054, and shall not apply
to any deeds, instruments, or writings delivered on or after January 1,
2055.
SEC. 1119. AMENDMENT OF ARTICLE.
The Board of Supervisors may amend or repeal this Article 12-C
by ordinance without a vote of the people except as limited by the
California Constitution.
Section 2. Article 12-C of the Business and Tax Regulations
Code is hereby amended by revising Section 1102, to read as follows:
SEC. 1102. TAX IMPOSED.
There is hereby imposed on each deed, instrument or writing
by which any lands, tenements, or other realty sold within the City
and County of San Francisco shall be granted, assigned, transferred
or otherwise conveyed to, or vested in, the purchaser or purchasers,
or any other person or persons, by his or her or their direction, when
the consideration or value of the interest or property conveyed (not
excluding the value of any lien or encumbrances remaining thereon
at the time of sale) (a) exceeds $100 but is less than or equal to
$250,000, a tax at the rate of $2.50 for each $500 or fractional part
thereof; or (b) more than $250,000 and less than $1,000,000, a tax
at the rate of $3.40 for each $500 or fractional part thereof for the
entire value or consideration, including, but not limited to, any portion
of such value or consideration that is less than $250,000; or (c) at
least $1,000,000 and less than $5,000,000, a tax at the rate of $3.75
for each $500 or fractional part thereof for the entire value or con-
sideration, including, but not limited to, any portion of such value or
consideration that is less than $1,000,000; or (d) at least $5,000,000
and less than $10,000,000, a tax at the rate of $11.25 for each
$500 or fractional part thereof for the entire value or consideration,
including, but not limited to, any portion of such value or consider-
ation that is less than $5,000,000; or (e) at least $10,000,000 and
less than $25,000,000, a tax at the rate of $27.50 for each $500 or
fractional part thereof for the entire value or consideration, including
but not limited to, any portion of such value or consideration that is
less than $10,000,000; or (f) at least $25,000,000, a tax at the rate