The mansion at 2898 Broadway in Pacific Heights has all the trappings of the Gilded Age, from the ornate plaster medallions on the living room ceiling to the oak fireplace sitting area in the primary bedroom (one of 10).
Since 1988, the property has been owned by longtime tech investor Jim Willenborg and his wife Barbara, who purchased the estate for $3.4 million, according to property records.
The Willenborgs’ long record of ownership means the property has the largest gap between the home’s assessed value for tax purposes and its current market value in San Francisco. The property’s current assessed value is $6.38 million versus its market value of $27.9 million as estimated by Zillow.
Last year, the owners of 2898 Broadway paid just $75,800 in property taxes. Using Zillow’s Zestimate value as a benchmark that would be the equivalent of a 0.27% effective tax rate on the property. San Francisco’s regular property tax rate is 1.17% of a property’s assessed value.
Utilizing city property and tax records, as well as data from Zillow, the Standard found the top four homes in San Francisco with the biggest discount in property tax rates based on their current market values.
Surprisingly, despite their locked-in deal paying low taxes, the Willenborgs are selling up. A listing for the property—asking $32 million—touts “awe-inspiring Golden Gate Bridge panoramic views” and its appearance in numerous Hollywood films like Jagged Edge and Sweet November. However, for the purposes of San Francisco—and its flagging tax base—the property is valued at a fifth of that figure.
In comparison, a new buyer at that $32 million price tag would be paying nearly $400,000 in taxes every year, a little less than the median home price for the U.S.
The gap between the price of a home due to tax purposes and its current value in an extremely housing-constrained market like San Francisco is a legacy of 1978 state Proposition 13.
Passed by voters as a backlash to rising property taxes, the ballot initiative established a baseline for assessed property values at 1976 levels and limited how much this number could increase yearly unless a home is sold or majorly renovated. Currently under Prop. 13 this annual growth rate is capped at 2% or the state’s inflation rate, whichever is lower.
Since its enshrinement into law, Prop. 13 has become a political third rail with California officials loath to amend a policy that has proven to be a major boon for the state’s homeowners. That means it’s not uncommon to see homes currently worth multiple times their assessed value, particularly those that have long been controlled by a single entity without a sale.
“Those who have been fortunate enough to purchase a home before the values jumped, have a somewhat reasonable property tax expense,” said Peter Villaverde, real-estate manager at the San Francisco Bay Area Office of Invoke Tax Partners.
After years of benefitting from this quirk of state law, these longtime homeowners are selling out, leaving whoever comes next with a hefty tax bill.
The property with the second largest gap in assessed and current market value previously served as the residence of Robin Williams and his former wife and Mrs. Doubtfire producer Marsha Garces Williams.
There is a nearly $19 million difference between the $5.7 million assessed value of the property and the Zestimate market value of $24.7 million. Its $74,286 property tax bill in 2023 translates to a 0.3% effective tax rate.
A new buyer at the current $25 million asking price would pay some $295,000 in annual property taxes.
Originally built in 1926 by the wealthy Olsen family, who made their fortune in lumber and shipping, the property sits a short distance from China Beach between the Presidio and Lands End. The expansive 17,000-square-foot corner lot is located in Sea Cliff, a posh neighborhood of San Francisco renowned for its collection of estates with pristine ocean views.
In the early 1990s, Marsha and Robin Williams renovated the Italian Renaissance-style villa with six bedrooms, five bathrooms and three half-bathrooms. Marsha and Robin Williams lived at the property for more than a decade and raised their children in the home after purchasing it for $3.2 million in 1991, according to property records. The couple divorced in 2010, and Marsha took over ownership of the home after they separated.
Next up on the list is a 6-bedroom, 9-bathroom adjacent to Fairmont Plaza that looms high over the hills abutting Glen Park and Noe Valley.
The sleek, modern four-story home on the property was built in 2019 and is billed as a “Hollywood Hills-inspired masterpiece” on its listing site. The property itself was purchased by tech investor Benjamin Ling in 2013 for $1.46 million, who constructed his own home on the site designed by San Francisco architecture firm Studio Graf.
The mansion includes its own guest suite—complete with a kitchen and living space—as well as a 1,000-square-foot professional-grade theater in the lower level that can seat 22 people.
Zillow’s Zestimate figure tags the property’s market value at $18.4 million against its current assessed value of $4.03 million. The home’s last property tax bill of $48,209 would equate to an effective tax rate of 0.26%.
A new buyer at the current $20 million asking price would pay some $235,000 in annual property taxes.
Located in the tony Gold Coast enclave that houses some of the city’s swankiest estates, the 4-bedroom, 5-bathroom home was designed by noted mid-century architect William Wurster. Among the home’s features are a limestone-clad bath in the primary bathroom, a built-in wine cellar and a central courtyard entryway.
But perhaps the most interesting thing about the property is its ownership history. Current California governor Gavin Newsom and his ex-wife Kimberly Guilfoyle sold the property to its current owners in 2004 for $3.62 million after living in the home for three years.
Zillow’s Zestimate figure tags the property’s market value at $15.5 million against its current assessed value of $5.6 million. The home’s last property tax bill of $70,169 would equate to an effective tax rate of 0.45%.
A new buyer at the current $13.75 million asking price would pay some $162,000 in annual property taxes.
A woman who answered the door at 2870 Pacific Ave., who identified herself as the home’s owner, declined to give her name but said she felt her property taxes were “too high.”