James Decker got a nasty surprise after returning from a trip out of town — a new property tax bill after 12 years of owning his Haight Street condo.
A letter from the city politely informed him that he must pay an extra $171.34 in property taxes. According to public records, he already pays $12,500 annually.
Decker is just one of 5,640 apartment and condo owners the city notified this month of the new charge.
The Standard obtained the letter from the Department of Building Inspection, which blames a “clerical oversight” for the added fee. The letter says the property owners should have been charged a San Francisco Apartment License Fee but will not be charged retroactively. The Office of the Treasurer & Tax Collector said in an email that DBI discovered the issue by accessing a new city database.
“It’s like they’re reaching into your pocket for no reason,” Decker said.
Beyond the surprise bill, Decker is frustrated with the way the charge is levied on apartment owners. For example, an owner in a building with 10 units would split this year’s $514 fee 10 ways. But Decker’s building has three units, so the fee is higher for him and his two neighbors.
“That’s inequitable,” Decker said.
Since 2022, the fee has gone up by $188 for buildings with three to 12 units. The fee was first implemented in 1968, according to DBI.
The city was unable to say how much revenue was lost because of the “oversight,” but its best estimate is $2 million. DBI is set to recover $861,767 this fiscal year through the fee.
A DBI spokesperson said the fee is not related to the city’s $800 million budget shortfall.
The fee funds building inspections and other duties carried out by DBI, according to a FAQ link in the emailed letter.
Owners of single-family homes and duplexes are exempt from the fee if they don’t rent out their units.
Decker said he contacted DBI and Supervisor Dean Preston to complain about the surprise tax. Preston’s team said they referred him to DBI.
“I believe in San Francisco city programs; they should be funded,” Decker said. “It’s not that the fee shouldn’t be assessed — but everyone should pay equally to fund DBI.”