UPDATE April 3, 2020: Property tax deadline in San Francisco moved to May 4. Read about our win.

CLICK TO SIGN PETITION TO MOVE PROPERTY TAX PAYMENT TO JULY

By Joel P. Engardio

Most San Francisco residents are renters. That’s why it was important for City Hall to place a moratorium on evictions when it ordered everyone to shelter at home for weeks to slow the spread of the coronavirus pandemic.

Entire industries of retail and service workers who lost their jobs because of the city shut down shouldn’t be punished with an eviction if they can’t pay rent.

We also need to consider the 40 percent of San Franciscans who are homeowners. They are facing a property tax bill due April 10 that will be hard to pay. They need relief, too.

The federal government has already postponed individual tax payments from April to July. So has California for state income taxes.

California must follow suit with its property tax bill and delay payment to July. The state sets the due date and San Francisco City Hall should push the state to change the date.

Property tax reprieve will help many
Giving property owners a reprieve will also help renters. If a landlord typically uses March and April rent payments to cover property taxes, postponing the tax bill to July means less pressure to collect rent. This allows landlords and renters to work together so they can both get by during this critical time.

Moving the property tax payment to July also helps many middle-income and immigrant families who have become homeowners in recent years. They are not yet benefiting from Prop 13, the state law that sets the property tax rate to the year a home was purchased and limits increases going forward.

Newer homeowners are paying market rate property tax, which is a huge sum based on today’s home prices. A young family that just barely entered the home market last year will have a hard time paying property tax right now if their ability to work is impacted by the coronavirus shut down. Many immigrants have put their entire life savings into purchasing their home and don’t have much cash flow. They are at risk, too.

Westside concern
I live on the westside of San Francisco in District 7 (see map) where more than 70 percent of residents are homeowners. They are stressed about the looming April 10 property tax deadline.

Homeowners should pay their property taxes by April 10 if they can, because the funds are needed for government services. But the state should move the payment date to give struggling homeowners relief.

We must work together so everyone — renters, homeowners and small businesses — get relief during this extraordinary time to keep our local economy going.

Petition
Sign this petition that asks:

• Governor Newsom to expand his March 12th Executive Order delaying the deadline for state tax filing to include property taxes, and move the property tax payment to July in line with when state income taxes are now due.

• The California Board of Equalization, which oversees property tax rules, to take action.

• State legislators to pass an emergency bill allowing the date to be moved, if the April 10 due date is codified in state law and there is no other remedy.

• San Francisco’s mayor, board of supervisors and treasurer (who sends and collects the property tax bill) to advocate for San Francisco homeowners and urge state officials to act.

• San Francisco Treasurer Jose Cisneros to automatically waive penalties on property taxes for the same period of time that Governor Newsom’s March 12th Executive Order pushed back California’s income tax deadline.

UPDATE March 20: The petition was started March 19 and on March 20 San Francisco Treasurer Jose Cisneros made the following statement:
“We encourage all property owners who can pay their taxes on time to do so. This revenue helps keep the government running and providing vital services that the public relies on, especially in times like these. While we cannot change the state law that sets the April 10 property tax deadline, taxpayers who are unable to pay on time for reasons related to COVID-19 should submit a request for a penalty waiver online.”

Important note: The waiver currently being offered by the city treasurer is not what the petition is asking for. Homeowners need an automatic waiver on property tax penalties until July. The current waiver offered by the city treasurer has the following caveats: “The waiver review process may take up to six weeks. Unpaid balances will continue to accrue additional penalties and interest which are the responsibility of the taxpayers should the waiver request be denied.”

UPDATE April 3, 2020: Property tax deadline in San Francisco moved to May 4. Read about our win.

Joel Engardio is a candidate for supervisor on San Francisco’s westside in District 7. Learn more about his views on local issues at engardio.com/issues