San Francisco Mayor London Breed has proposed a reduction of the city's tax on subleased space through 2029 as a way of spurring office occupancy levels.
However, an analysis released by the Controller's Office of Economic Analysis has concluded that the loss of revenue from the tax reduction is likely to outweigh any benefits from the action—because the tax on subleasing has become a major revenue stream during the pandemic.
The analysis found than an additional 50K to 100K of subleasing might result from Breed's proposal to exempt office tenants from the 3.5% commercial rent tax on sublease space they normally would have to pay, the San Francisco Business Times reported.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
