A revived attempt to tax empty second homes tax is a step closer to hitting the June ballot.
A City Council committee unanimously approved the proposal from Councilmember Sean Elo-Rivera Wednesday. It now goes to a full Council vote on March 3.
A similar proposal that was paid with a more controversial tax on short-term vacation rentals died in the same committee last month.
But Councilmembers Vivian Moreno and Kent Lee both said at that meeting they were amenable to a tax only on vacant second homes. Elo-Rivera brought back the standalone proposal, and it was approved 5-0.
This proposal would tax property owners $8,000 per empty second home in its first year and $10,000 per home in its second year. Corporate-owned empty homes would get a $4,000 charge in 2027 and $5,000 in 2028.
Unlike the first time around, there was not organized opposition from Airbnb or the Chamber of Commerce.
Councilmember Raul Campillo voted to advance the proposal, but raised concerns about its legality. He was specifically referring to a San Francisco Superior Court ruling that decided a similar tax there was unconstitutional.
“I think that before the item reaches a ballot, there’s still a little more homework to be done from the city attorney’s office to make sure we get this right,” Campillo said. “And if we do that we have a real opportunity to address both budget deficit and housing [affordability] issues. I would want to see both of those be successful.”
Campillo asked the city attorney’s office to write an opinion explaining the strengths and weaknesses of the city’s legal position. He asked for recommendations to make the tax more legally defensible.
“I will support moving this forward to council today, but I will be relying on that memorandum to make a final decision,” Campillo said.
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