Law to Implement Empty Homes Tax Passes Unanimously at Board of Supervisors

Owners of qualifying vacant homes will have to file and pay a tax starting April 30, 2025, under a law passed unanimously today by the Board of Supervisors. The law provides implementation details for the Empty Homes Tax ballot measure approved by 55% of San Francisco voters in November 2022.

“I’m proud that the voters of San Francisco approved one of the strongest empty homes taxes in the world, which has become a model for other cities,” said Supervisor Dean Preston, lead sponsor of the ordinance passed today. “We are now taking the next steps toward providing clarity for property owners and guidance for how the tax will be collected.”

The Empty Homes Tax, Proposition M on the November 2022 ballot, was carried by an extensive organizing effort from the Democratic Socialists of America - San Francisco chapter, Faith in Action Bay Area, TODCO and Supervisor Dean Preston. The measure was outspent by a margin of 3 to 1, but won with a commanding 55%-45% margin, making San Francisco the third city in the country to pass a residential vacancy tax.

The proposed law will tax owners of buildings of three units or more, where a residential unit has been vacant for more than six months in a given year. The tax rate is higher for larger units, and it increases the longer a home is kept vacant. It is scheduled to take effect on January 1, 2024, with the first filing deadline set for April 30, 2025.

Since being approved by San Francisco voters, policymakers from multiple U.S. cities, including Minnesota, Denver, and New York City, have contacted Preston’s office for guidance on how they could undertake similar efforts. A recent analysis of U.S. Census data found that in the 50 largest metropolitan areas and found there are 5.47 million vacant housing units.