Mayor, Mahmood hit the brakes on controversial S.F. transfer tax cut

June 9, 2026 - 07:40

City leaders are pausing their plan to halve San Francisco's "transfer tax" on sales of multi-million dollar properties. Mayor London Breed and Board of Supervisors President Aaron Peskin announced the delay on Wednesday, pulling a measure that was set to go before voters in March. The proposal would have slashed the tax in half for properties sold for more than $10 million, a move intended to spur real estate deals and downtown investment. Critics argued it would gut a key revenue source at a time when the city is facing a massive budget deficit.

The decision to hit pause came after weeks of intense debate. Supporters said the high tax was choking off commercial sales, leaving office towers empty and starving the city of economic activity. Opponents countered that the cut would primarily benefit wealthy developers and property owners, while the city struggles to fund homelessness programs and public safety. The mayor's office acknowledged the need for more public input and economic analysis before moving forward. No new timeline has been set for a revised proposal. The existing transfer tax rates remain in effect.