San Diego Voters Appear To Reject Tax On Vacant, Non-Primary Residences

SAN DIEGO, CA — San Diego voters appeared to be rejecting Measure A Wednesday, a proposed tax on homes left unoccupied for more than half the year, according to updated results from the county Registrar of Voters.

With votes still being counted, the measure was failing with 109,363 votes, or 57.8%, against it and 79,810 votes, or 42.2%, in support. A simple majority was required for passage.

Measure A, dubbed the "Non-Primary Homes Tax," would impose annual taxes on residential properties within the city that remain vacant for more than 182 days per year. The tax would start at $8,000 in 2027 and increase to $10,000 in subsequent years.

The San Diego City Council voted 8-1 to place the measure on this year's ballot.

Supporters argued the tax would help address the city's housing shortage by encouraging owners to rent or sell vacant properties while generating revenue for housing and other city services. Opponents contended the measure raised questions about enforcement, legality and how any revenue would ultimately be spent.

In a Tuesday night statement, Councilman Sean Elo-Rivera said that San Diegans "showed up tonight against more than $1.3 million in big money opposition spending -- more than four times what our coalition spent -- and they did it because they're tired of watching homes sit empty while their neighbors sleep on the street and struggle to keep a roof over their heads."

"Whatever the final number, the fight to make San Diego a place working people can afford has only just started," said Elo-Rivera, who proposed the ballot measure. "We're going to count every vote, and we're going to keep going either way."

Elo-Rivera said the measure would apply to around 5,100 residences or around 1% of San Diego homes.

Measure A backers said that monied interests "(flooded) the zone with falsehoods, mistruths and scare tactics."

"Homes for San Diego ran a campaign focused on facts, organic storytelling, and community dialogue with the support of teachers, firefighters, veterans, neighbors and dozens of San Diego community, housing, and labor organizations," the backers continued.

At a recent news conference supporting Measure A, Elo-Rivera said the measure will "encourage the absentee owners and investors to either rent those homes out or sell them to San Diegans, or contribute to our General Fund so that we can keep day centers open, fund eviction prevention, keep libraries open, park staff and build affordable housing."

Measure A's supporters argue the largely unoccupied homes have been hoarded by corporations and wealthy investors, reducing the housing supply for working-class San Diegans.

The measure includes a number of exemptions, including those who own homes that are unoccupied due to military deployments, the owner's death within a two-year period, or owners who are in a medical care facility.

"Measure A won't fix this year's budget, but it makes sure we're not having the same painful conversation again and again and again, and we're doing that by asking those who have the most to pay their fair share," Elo-Rivera said.

But opponents say the money generated by the tax won't go specifically toward new housing and that similar measures in other cities had little to no measurable effects on housing construction or costs.

Even if approved, opponents say the measure won't be able to withstand a legal challenge, as a similar tax in San Francisco -- which targeted vacant apartment units -- was ruled unconstitutional by a judge.

Raul Campillo, the lone council member to oppose Measure A, said the San Diego City Attorney's Office was not able to articulate whether Measure A could avoid similar litigation.

Campillo said at a news conference opposing the measure that those litigation fees would be paid by taxpayers, while none of the measure's financial benefits would be seen while it remains in legal limbo.

"There is significant legal risk here by putting this before the voters and having them approve it, only to be mired in litigation," Campillo said.

Opponents say there is additional uncertainty regarding how the measure will be enforced and that the costs incurred by the city unit tasked with tracking and collecting the tax will end up consuming much of the taxes on their own.

— City News Service