Friday, July 27, 2018

Why the city likes big buildings

San Francisco’s property tax revenue rose 12 percent in the fiscal year that ended in June, as new office buildings generated millions of dollars in fresh taxes. The city’s property value grew by $26 billion, the most in five years, to a record $250 billion, according to the city’s assessor-recorder.

New construction was responsible for 44 percent of the growth, twice the amount in the previous year. The city’s emerging Transbay District contributed the most new property value at $3.78 billion, led by Salesforce Tower, the city’s new tallest building. 

The value of property in Mission Bay grew by $2.19 billion, thanks largely to the Exchange, soon to be Dropbox’s headquarters, and the half-finished Chase Center, future home of the Golden State Warriors. 

New construction provides a vital boost to property rolls: Under Proposition 13, which limits property taxes to 1 percent of assessed value, the value of existing buildings can rise only 2 percent a year, unless they are sold.

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