Measure to close transfer‑tax foreclosure exemption continued for one week after amendments and legal guidance

Supervisor Bridal Mahmood (as recorded in the July 15 minutes) introduced a proposed ordinance to be submitted to voters on November 3, 2026, that would amend the Business and Tax Regulations Code to eliminate the real property transfer tax foreclosure exemption for transfers of properties other than small residential or qualifying mixed‑use parcels. Mahmood and staff cited assessor and controller data showing substantially increased use of the exemption in higher‑value commercial and investor transactions in recent years and the controller’s estimate that removing the exemption could add roughly $100–$150 million in annual transfer‑tax revenue on average in the near term (though revenue would be cyclical and unpredictable).

Three clarifying amendments were read into the record to clarify ballot language and avoid creating a ballot‑measure conflict with other measures, including a change to appropriation language and cross‑referencing other possible voter amendments. A public commenter who identified herself as a small business owner said she supported the clarifying amendment.

Deputy city attorney advised the committee that amendments to a ballot measure are substantive and therefore the item must be continued for one week to allow appropriate notice; the committee voted to continue the item to the July 22 meeting. The measure remains scheduled for Board consideration of whether to place it on the November ballot.