Rules Committee advances temporary delay of San Francisco storefront vacancy tax to full Board

The Rules Committee on June 3 advanced an ordinance that would temporarily suspend the newly adopted storefront vacancy tax’s implementation through Dec. 31, 2021, sending the item to the full Board of Supervisors with a positive recommendation.

Lee Hepner, representing Supervisor Matt Peskin’s office, told the committee the measure responds to rapidly changing economic conditions following the COVID‑19 emergency and the need to give small businesses and landlords additional time before the tax takes effect. Hepner said the original ballot measure — approved by roughly 70% of voters — included language that allowed the Board to reduce or delay the tax if circumstances warranted.

Public comment was mixed. Small-business owners and neighborhood property owners described widely divergent experiences: some speakers urged preserving the vacancy tax as a bargaining tool that discourages landlords from keeping storefronts empty, while others said re‑tenanting can take months to a year in neighborhoods such as the Excelsior and that a blanket implementation date is not equitable across the city.

Chair Supervisor Hillary Ronan moved to send the item forward with a positive recommendation. After clarifying committee procedure, the motion passed on a roll-call vote: Supervisors Catherine Stephanie and Gordon Marr voted aye, and Chair Ronan cast the deciding aye.

The committee’s action means the ordinance is expected to appear on the Board agenda on June 9. If the full Board approves the measure, the effective implementation date of the vacancy tax will be pushed back to allow more time for small businesses to stabilize during the public‑health emergency.