Board approves suspension of San Francisco's empty homes tax pending court decision, 9-2 on first reading

The San Francisco Board of Supervisors voted 9-2 on March 18 to pass on first reading an ordinance that suspends the city's voter-approved empty homes tax until a final court decision in ongoing litigation.

The ordinance, read into the record by the clerk, would suspend the empty homes tax pending a final decision in the lawsuit challenging the measure and would reinstate the tax to first apply in the tax year immediately following the calendar year of that final decision. The clerk said the measure requires a two-thirds vote to pass under the Business and Tax Regulations Code (Article 29A, section 29.61).

Why it matters: Supervisors and city fiscal staff said the legal uncertainty makes implementing the tax administratively difficult and could reduce near-term revenue, while opponents said suspension risks leaving significant revenue on the table during a…