San Diego's elected leaders have proposed a second home tax on properties that are unoccupied for more than half the year, aiming to return as many as 5,100 homes to the rental and for-sale markets. The measure has sparked a contentious debate between supporters and foes, with critics arguing that it infringes on property rights and the expected revenue from the tax won't be earmarked for affordable housing.
Coastal properties in La Jolla are among the more than 5,000 dwellings citywide that could be impacted by a proposed second home tax on the June ballot.
For years, vacant homes in large U.S. cities have conjured up images of derelict, abandoned properties in need of loving attention and a full-time resident. In San Diego, a June ballot measure is taking aim at a very different kind of vacant dwelling by proposing to heavily tax second homes — from the coast to the suburbs — that are unoccupied for more than half the year.
Measure A, known formally as the non-primary homes tax, was placed on the ballot by San Diego’s elected leaders as part of what they say is a broader effort to tame the stubborn rise in unaffordable housing by returning as many as 5,100 homes to the rental and for-sale markets. The largest concentration of such homes is in some of San Diego’s priciest neighborhoods — downtown and La Jolla.
The highly contentious measure, placed on the ballot in March, quickly triggered a fierce war of words between supporters and foes in what has evolved into a costly campaign. The opposition has easily outspent supporters by a margin of nearly 5 to 1, raising more than $1.3 million, largely funded by both the California and national associations of Realtors. Supporters have contributions totaling over $282,000, with the bulk of their support coming from labor unions.
Flyers mailed by the opponents blast the tax as ‘Just Another Failed City Hall Scheme,’ while proponents, in their digital messaging, accuse corporations and wealthy investors of ‘hoarding 5,100 homes. ’ Measure A seeks to impose an initial annual tax of $8,000 on second homes that are deemed to be unoccupied for more than 182 days in a single year. In subsequent years, the tax would rise to $10,000.
For corporate-owned housing, there would be an initial surcharge of $4,000 that would increase to $5,000 thereafter. If passed, the measure would go into effect next year, with the first tax bills mailed out in early 2028.
While the number of homes affected by the proposed tax represents only 1% of the city’s housing inventory, San Diego City Council members argue that in a city where fewer and fewer residents can afford to buy a home — the median price countywide is $900,000 — and one-bedroom apartments rent on average for $2,200 a month, any effort to assist struggling residents is worthwhile. Critics of the measure, chief among them real estate agents and scores of owners of second homes across the nation, counter that their constitutional property rights are being trampled upon by effectively forcing owners to sell or rent out their homes in the face of a costly tax they can ill afford to pay.
Yet another failing, they say, is that the expected revenue generated by the tax — from $9.2 million to $21.4 million in the first year — isn’t even earmarked for affordable housing. Instead, it will go directly into the city’s general fund.
‘I’ve spoken to numerous people who have inherited their second homes. One of them is a lady from Japan, and she has a little condo here so she can come a couple of months a year to spend with her family, who live here because she’s not leaving Japan. She’s elderly,’ said Karen Van Ness, president of the San Diego Association of Realtors.
‘Realtors are the advocates for homeowners and homeownership and private property rights. And I can tell you that we’re not going to sit by and watch the taking of private property or the grabbing of funds that our homeowners have generated by paying taxes, paying mortgages, paying interest, because the city can’t manage their funds, and that’s what this comes down to,” Elo-Rivera said
San Diego Second Home Tax Vacant Homes Housing Affordability Property Rights Second Homes Tax Non-Primary Homes Tax Housing Crisis Affordable Housing Housing Costs Housing Inventory Housing Market Housing Prices Housing Market Trends Housing Market Dynamics Housing Market Analysis Housing Market Trends Analysis Housing Market Dynamics Analysis Housing Market Analysis And Trends Analysis Housing Market Analysis And Trends Analysis
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
San Diego Islamic Center attack: Mom of attackers calls police twice before attackThis news text focuses on the attack at the Islamic Center of San Diego in San Diego, California. It mentions the attack, the casualties, and the details of the attacker. It also highlights the mother's frantic calls to police before the attack and their handling by the police.
Read more »
San Diego County adds 7,200 Jobs as unemployment Falls to 4.1%The region's unemployment rate compares with 5% in California and 4% nationally during the same period.
Read more »
Navy preparing to sink two prominent and retired San Diego warships off HawaiiDestruction will be part of Rim of the Pacific exercise.
Read more »
Workers, guests warned of measles exposure at downtown San Diego hotelSan Diego County public health officials investigating measles exposure at the Marriott Marquis San Diego Marina near the San Diego Convention Center
Read more »