A San Diego City Council committee on Wednesday voted to advance a tax measure targeting homes that are vacant for most of the year.
The tax is a scaled back version of an earlier proposal from Councilmember Sean Elo-Rivera that would have taxed both vacant homes and short-term home rentals. That proposal triggered a backlash from Airbnb and short-term rental hosts, and the measure failed to advance out of the council's Rules Committee.
The new proposal won unanimous support from the committee's five members, meaning it has support from a council majority. The full City Council is expected to vote Tuesday on officially placing the tax measure on the June 2 primary ballot.
The tax rate would start at $8,000 for homes that are vacant for 183 days or more per calendar year, with an additional $4,000 surcharge for homes owned by corporations. In the tax's second year, the rate would rise to $10,000 per home, with the corporate surcharge rising to $5,000.
Elo-Rivera said homeowners can avoid the tax by simply renting out their second home — or by qualifying for a number of exclusions such as in the wake of a natural disaster or when an owner dies.
"It will change incentives, and homes will come back into use," Elo-Rivera. "And just like every new home we build, every home returned to housing is worthy of celebration because it opens the door to a family that gets to stay in San Diego, potentially even as a homeowner."
The city's Office of the Independent Budget Analyst estimated the tax could generate between $12.1 million and $23.8 million in the first year, and between $15.3 million and $30 million in the second year. It based its assumptions on revenue from similar vacant home taxes in Berkeley, Oakland and Vancouver.
Opponents to the tax measure told the committee it would infringe on property rights and add to an already high tax burden. But Councilmember Kent Lee said it would only apply to the wealthy.
"If someone can afford to own a second home and not use it for any purpose, they can absolutely afford to pay that tax — and they should," Lee said.
