Oakland Measure FF proposes to close a loophole in Oakland’s current real estate transfer tax.
Usually, when real estate is sold in Oakland, the City collects up to 2.5% of the sales price as a transfer tax. Currently foreclosed properties are not subject to this tax.
If passed, Measure FF would enforce this tax for foreclosure sales of large commercial or apartment buildings. It would also tax transactions by big banks and investors who already own more than 20 properties or have assets of over $10 billion. Buildings under 5 units, small commercial buildings, homeless shelters and health facilities would not be taxed.
The Oakland city council placed the measure on the ballot by unanimous vote.
Measure FF is projected to raise anywhere from $4 to $14 million annually for Oakland’s General Fund. Proponents of the measure say this tax will increase revenue during economic downturns and help even out city revenues when the real estate market crashes.
No organized opposition to the measure has been reported.
So, to recap: A “Yes” vote on Oakland Measure FF will mean that sales of large commercial and residential property and purchases by wealthy investors will owe the full real estate transfer tax on foreclosed properties.
A “No” vote will not change Oakland’s real estate transfer tax.
