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The San Francisco Superior Court has struck down a residential vacancy tax slated to take effect in 2025, ruling that the tax is unconstitutional.
Voters approved the Empty Homes Tax in 2022, which required owners of apartments or condos in structures with three or more units to pay a tax on units vacant for 182 or more days in a calendar year. Filing and fees were scheduled to begin in 2025.
However, the San Francisco Apartment Association, Small Property Owners of San Francisco Institute, San Francisco Association of Realtors and four individual landlords filed a lawsuit in San Francisco Superior Court in February 2023 to challenge the constitutionality of the law. And the San Francisco Superior Court ruled yesterday morning that the tax violated the Constitution and imposed an unlawful burden on privacy interests, while also being pre-empted by the state’s Ellis Act.
As it stands now, the residential vacancy tax is no longer in effect. The city will appeal the decision and debate will continue. (Here’s a link to the court decision.)
Owners in this property category now don’t need to file or pay any fees to the city. I’ll keep you updated on any future developments…(more)