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Board moves to implement commercial vacancy tax; ordinance set for January 1, 2022 start
Summary
The Board of Supervisors passed on first reading an ordinance to implement the commercial vacancy tax approved by voters as Proposition D; supervisors framed the tax as a tool to keep storefronts occupied and support small businesses.
The San Francisco Board of Supervisors on June 15 passed on first reading an ordinance to amend the business and tax regulations code to add provisions to administer the commercial vacancy tax approved by voters as Proposition D.
Supervisor Aaron Peskin, an author of the measure, reminded the board that "over 70% of San Francisco voters voted in favor of Proposition D" and said the ordinance27s purpose is to encourage landlords to keep storefronts occupied. The board previously delayed implementation from January 1, 2021 to January 1, 2022 because of the pandemic; the June 15 action moves the city toward implementing the tax on the new timeline.
Peskin and other supporters said the vacancy tax is intended to be a backstop that is never assessed if landlords diligently market retail spaces. The measure establishes administrative systems and enforcement tools for the Treasurer27s Office and Tax Collector to operate the tax and collect information needed for compliance.
The ordinance passed on first reading unanimously by roll call. Implementation details and the tax27s administration will be developed by the Treasurer and Tax Collector27s Office ahead of the January 1, 2022 effective date.
Ending: Supporters said the vacancy tax works best if it does not need to be paid, because that would mean storefronts are being reused. The board set the policy path toward local administration of the voter-approved tax and will consider technical implementation steps in the months ahead.
