Board clears parking-tax simplification for small residential landlords, 10-1 on first reading

The San Francisco Board of Supervisors approved on first reading an ordinance to simplify parking tax compliance for residential property owners who rent out a limited number of parking spaces.

Supervisor Scott Wiener, sponsor of Item 15, told the board the measure would exempt small residential landlords who rent five or fewer spaces from many of the current administrative burdens that apply to larger parking operators, such as fingerprinting, revenue-control devices, background checks and annual fees. The legislation would set the payment schedule for those small owners to quarterly, exempt them from certain licensing requirements, and provide a partial amnesty window: between Jan. 1 and June 30 of the following year, owners who come forward and pay up to two years of back taxes would not be assessed penalties or interest, enabling them to become compliant without additional sanction.

Supervisor Christina Olague asked to continue the item to allow further analysis by the Market Octavia Community Advisory Committee and staff at the Planning Department and the San Francisco Municipal Transportation Agency. Supervisors Laughey (motion maker) and Campos initially supported a two-week continuance request, but after discussion and some withdrawals the motion to continue proceeded and was defeated in debate. Supervisor Wiener and other supporters said the planning commission and Budget and Finance Committee had already vetted the legislation and the continuance request came too late.

After debate the board took a roll-call vote on the ordinance on first reading; the motion passed with 10 ayes and 1 no (Supervisor Olague cast the lone no vote). President Chu announced the ordinance passed on first reading.

What the ordinance does and why advocates say it matters Wiener said the patchwork of enforcement and licensing requirements treats a homeowner who rents a single parking spot the same as a full-scale commercial parking operator, creating disproportionate compliance costs that deter owners from coming forward and paying owed taxes. The ordinance narrows the scope of onerous rules for small residential parking renters (those with no more than five spots), simplifies quarterly tax payment, removes certain fees and compliance items and creates the temporary amnesty period to encourage voluntary compliance and increase revenue collection for the Municipal Transportation Agency.

Opponents and concerns Supervisor Olague and others sought additional review from local advisory committees and city departments; she voted against the ordinance citing concerns about process and the request by the Market Octavia CAC for further analysis. Supporters, including supervisors who sat on the Budget and Finance Committee, said the measure was vetted there and by the Planning Commission and that continuation requests made on short notice were not justified.

Next steps The ordinance passed first reading and will return for a second reading. The fiscal and implementation details, including how the SFMTA will adjust collection and enforcement, will be addressed during the follow-up process and in detailed implementation plans.