How the rate structure works
The Stronger Muni for All parcel tax uses a tiered system where larger properties pay more. Here's how it breaks down for each property type. For background on why this measure is needed, see public transit in California is underfunded.
Base rate
$129/yr
Up to 3,000 sqft
Mid tier
+$0.42/sqft
3,001 – 5,000 sqft
Large homes
+$1.99/sqft
Over 5,000 sqft
96% of single-family homes pay the $129 base rate
Sec. 1805(a) — Stronger Muni for All Ordinance
(1) If the Building Area is 3,000 square feet or less, the Tax shall be $129. (2) If the Building Area is between 3,001 square feet and 5,000 square feet, the Tax shall be the sum of (A) $129; and (B) $0.42 multiplied by the Building Area over 3,000 square feet. (3) If the Building Area is 5,001 square feet or more, the Tax shall be the sum of (A) the maximum amount that could be due under subsection (a)(2); and (B) $1.99 multiplied by the Building Area over 5,000 square feet.
Base rate
$249/yr
Up to 5,000 sqft
Larger buildings
+$0.195/sqft
Over 5,000 sqft
Renters pay less than single-family homeowners
Because the tax is spread across units in a building, the per-household cost for renters is typically well below the $129 single-family base rate.
Renter protections for rent-controlled units
For rent-controlled tenants, landlords can pass through at most 50% of the tax, capped at $65 per unit per year (or about $5 per month). That passthrough doesn't apply to any unit where the initial lease started on or after June 1, 2027.
Sec. 37.3(a)(12) — Stronger Muni for All Ordinance
A landlord may impose increases based on a passthrough of up to 50% of the parcel tax imposed under Article 18 of the Business and Tax Regulations Code, up to a maximum passthrough of $65 per unit per year, adjusted for inflation pursuant to Section 1804(b). However, a landlord may not impose this passthrough on a unit where the initial base rent was set on or after June 1, 2027.
Sec. 1805(b) — Stronger Muni for All Ordinance
(1) If the Building Area 5,000 square feet or less, the Tax shall be $249. (2) If the Building Area is 5,001 square feet or more, the Tax shall be the sum of (A) $249; and (B) $0.195 multiplied by the Building Area over 5,000 square feet, up to a maximum Tax of $50,000.
Small
$799/yr
Up to 5,000 sqft
Medium
+$0.76/sqft
5,001 – 50,000 sqft
Large
+$0.84/sqft
50,001 – 250,000 sqft
Very large
+$0.99/sqft
Over 250,000 sqft
Large downtown properties pay the most
Because the per-sqft rate increases at each tier, the biggest office towers and retail complexes in the Financial District and SoMa contribute the bulk of total revenue. A large downtown tower pays up to 500x more than a small storefront. About 70% of all revenue comes from commercial properties.
Example: 300,000 sqft office building
Sec. 1805(c) — Stronger Muni for All Ordinance
(1) If the Building Area 5,000 square feet or less, the Tax shall be $799. (2) If the Building Area is between 5,001 and 50,000 square feet, the Tax shall be $799 plus $0.76 per sqft over 5,000. (3) If between 50,001 and 250,000 square feet, the max of (c)(2) plus $0.84 per sqft over 50,000. (4) If 250,001 square feet or more, the max of (c)(3) plus $0.99 per sqft over 250,000, up to a maximum Tax of $400,000.
Buildings with both residential and commercial space — like apartments above a restaurant — are taxed based on the combined use. Small mixed-use buildings pay a flat rate. Larger ones are taxed as the sum of their residential and commercial portions.
Small buildings
$799/yr
Up to 5,000 sqft total
Larger buildings
Res + commercial portions
Each portion uses its own rate schedule, then added together
Example: 8,000 sqft residential + 6,000 sqft commercial
Residential portion (multi-family)
Commercial portion
Sec. 1805(d) — Stronger Muni for All Ordinance
(1) If the total Building Area 5,000 square feet or less, the Tax shall be $799. (2) If the total Building Area is 5,001 square feet or more, the Tax shall be the sum of: (A) The Tax computed as if the residential portion was a separate Parcel, reduced by $129 (single-family) or $249 (multi-family); and (B) The Tax computed as if the non-residential portion was a separate Parcel. Up to a maximum Tax of $400,000.
Exemptions
Government & tax-exempt properties
Parcels that don't pay ad valorem property tax are fully exempt.
Senior homeowners (65+)
Single-family homes owned and occupied by someone 65+ are fully exempt. Multi-family buildings get a $249 deduction per qualifying owner-occupied unit.
SRO units
Single Room Occupancy units (350 sqft or less) are excluded from the building area calculation — their square footage doesn't count toward the tax.
Small unimproved lots
Empty lots with 2,000 sqft or less of land area owe $0.
Sec. 1806 — Stronger Muni for All Ordinance
(a) Parcels on which no ad valorem property tax is levied for the Fiscal Year shall be exempt from the Tax. (c) Any Parcel in which an individual who is 65 years of age or older before July 1 of the Fiscal Year owns a beneficial interest, where such individual occupies a Dwelling Unit in the Parcel as the individual's principal residence, shall be entitled to the following: (1) If the Parcel is a Single-Family Residential Parcel, the Parcel shall be exempt from the Tax. (2) If the Parcel is a Multifamily Residential Parcel, the Tax shall be reduced by $249 for each qualifying Dwelling Unit. (d) The Building Area of any SRO Unit, including shared facilities, shall be exempt from the Tax and shall not be included in the determination of a Parcel's Building Area.
Duration & adjustments
The tax has a fixed lifespan and built-in inflation adjustments.
15 years
July 2027 through June 2042, then it sunsets automatically.
CPI adjusted
Starting in 2028, all dollar amounts adjust annually for SF-area inflation.
Sec. 1804 — Stronger Muni for All Ordinance
(b) Commencing with Fiscal Year 2028-2029, all dollar amounts in Sections 1805 and 1806 shall be adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/Hayward Area, as of December 31 of the preceding year, with per-sqft amounts rounded down to the nearest tenth of a cent and all other amounts rounded down to the nearest dollar. (c) The Tax shall take effect on July 1, 2027 for Fiscal Year 2027-2028, and shall continue in effect for each Fiscal Year thereafter until June 30, 2042, after which date it shall expire by operation of law.
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