Supervisor Wiener proposes parking tax simplification for San Francisco residential property owners

The San Francisco County Budget and Finance Committee convened on July 4, 2025, to discuss significant amendments to the Business and Tax Regulation Code, specifically focusing on parking tax simplification for residential properties. The proposed legislation, introduced by Supervisor Scott Wiener, aims to alleviate the burdens faced by small property owners and managers renting out five or fewer parking spaces.

The meeting began with Supervisor Wiener outlining the key components of the legislation. He emphasized that the current parking tax, which has been in place for decades, applies to all rentals of parking spots, including those by small property owners. Many of these owners have been unaware of their tax obligations, leading to a lack of compliance. The proposed changes would simplify the tax payment process, allowing these owners to avoid extensive requirements such as purchasing monitoring equipment, paying a bond, and undergoing fingerprinting.

The legislation includes provisions for a partial amnesty, enabling property owners to come forward and pay up to two years' worth of back taxes without incurring penalties or interest. This initiative is expected to generate additional revenue for the city, particularly benefiting the Municipal Transportation Agency (MTA).

In addition to tax simplification, the proposal seeks to amend the Planning Code to allow property owners to rent parking spaces to city residents living beyond the current 1,250-foot limit, which restricts rentals to nearby residents. This change aims to provide more flexibility for small property owners while maintaining a prohibition against renting to individuals living outside the city.

During the meeting, various stakeholders voiced their opinions. Supporters, including representatives from the San Francisco Apartment Association, praised the legislation for addressing outdated regulations that unfairly penalize small property owners. They argued that simplifying the tax process would encourage compliance and ultimately increase city revenue.

Conversely, some community members expressed concerns about the potential implications of the planning code amendment. Critics argued that loosening restrictions could lead to increased commuter parking and undermine existing city policies aimed at managing residential parking effectively. They urged the committee to consider the broader impact of these changes on local neighborhoods.

The Budget Analyst provided insights into the financial implications of the proposed ordinance, estimating a one-time revenue of approximately $1.8 million and ongoing annual revenues exceeding $900,000. However, they noted that the actual impact on the general fund would be less due to existing set-asides.

As the meeting progressed, the committee opened the floor for public comments, allowing various stakeholders to share their perspectives. Many speakers supported the legislation but called for further amendments to exempt small property owners from the parking tax entirely.

In conclusion, the committee's discussions highlighted the complexities surrounding parking regulations in San Francisco. The proposed legislation aims to simplify tax compliance for small property owners while addressing concerns about potential changes to residential parking dynamics. The committee plans to continue deliberations on the matter, with further amendments and public input expected in future meetings.