San Francisco County Municipal Code § 1108.10 Exemption

INSTRUMENTS. (a) Definitions. “Eligible Tenant” means a tenant to which the Port Commission conveys a leasehold interest in real property under the Port Commission’s jurisdiction, where such tenant was the tenant under a Prior Port Lease with respect to the same real property immediately preceding the effective date of the new leasehold interest, and the direct and indirect ownership interests in the tenant were identical under the Prior Port Lease at the time of termination and under the lease for which an exemption under this Section 1108.10 is being sought upon its effective date. “Exempt Port Lease” means any deed, instrument, or writing pursuant to which the Port Commission conveys to an Eligible Tenant a leasehold interest in real property under the Port Commission’s jurisdiction, where such leasehold interest has an effective date that immediately follows the termination of a Prior Port Lease with respect to the same real property. For purposes of this Section 1108.10, real property is the “same real property” under a Prior Port Lease if the real property was subject to the Prior Port Lease immediately preceding the effective date of the deed, instrument, or writing for which an exemption under this Section is being sought. “Prior Port Lease” means any deed, instrument, or writing pursuant to which the Port Commission granted a leasehold interest in real property under its jurisdiction with an effective date on or before December 31, 1979, without regard to subsequent amendments. (b) Exemption. Any Exempt Port Lease with an effective date on or after November 1, 2024 and on or before December 31, 2034, shall be exempt from the tax imposed under this Article 12-C if the requirements for exemption in subsection (c) are satisfied. (c) Requirements for Exemption. (1) Except as provided in subsection (c)(2), every person claiming the exemption under subsection (b) must: (A) Obtain from the Port a certificate confirming that the deed, instrument, or writing for which the person is claiming the exemption is an Exempt Port Lease; and (B) Submit the certificate described in subsection (c)(1)(A) to the County Recorder at the time such person submits the affidavit described in subsection (c) or (d) of Section 1111. (2) Notwithstanding the requirements in subsection (c)(1), every person claiming the exemption under subsection (b) for an Exempt Port Lease with an effective date on or after November 1, 2024, but prior to July 1, 2025, may do the following in lieu of the procedures described in subsection (c)(1): (A) Obtain from the Port a certificate confirming that the deed, instrument, or writing for which the person is claiming the exemption is an Exempt Port Lease. (B) By December 31, 2025, submit the certificate described in subsection (c)(2)(A) to the County Recorder, along with a request for a refund of the tax paid on, or the cancellation or reduction of any deficiency assessed with respect to, the transfer subject to the certificate. The County Recorder may authorize the Controller to refund these amounts, without interest, without the need for a refund claim. (3) Failure to timely satisfy the requirements in this subsection (c) will render the transfer ineligible for the exemption under subsection (b). (d) Sunset Date. This Section 1108.10 shall expire by operation of law on December 31, 2034. (Added by Ord. 299-24, File No. 241084, App. 12/19/2024, Eff. 1/19/2025)