CIM Urban REIT 211 Main Street (SF) v. City and County of S.F.

I. FACTS AND PROCEDURAL HISTORY

For context, we begin with an overview of the relevant law. We then discuss the Ordinance, the merger, and the litigation in the trial court.

2 A. Legal Background As a general rule, a city cannot impose taxes on the transfer of real property. (See Cal. Const., art. XIII A, § 3, subd. (a); art. XIII A, § 4; Govt. Code, § 53725, subd. (a).) There are, however, two means of imposing transfer taxes potentially available to local jurisdictions: (1) a state statute (Rev. & Tax. Code, § 11911) that authorizes any county or “city and county” to impose transfer taxes as set forth in that statute; and (2) a constitutional provision (Cal. Const., art. XI, § 5(a)) that authorizes a “charter city” to enact ordinances governing municipal affairs under the home rule doctrine. We look at both of these laws, since San Francisco is the only “city and county” in California (Trans World Airlines, Inc. v. City & Cty. of S.F. (9th Cir. 1955) 228 F.2d 473, 475; Green v. Superior Court (1889) 78 Cal. 556, 560) and is a charter city as well (San Francisco Fire Fighters v. City and County of San Francisco (1977) 68 Cal.App.3d 896, 898–899). 1. The State Act and Section…