San Diego's Measure A proposes tax on vacant non-primary homes; could generate up to $24.3M

SAN DIEGO -- If approved by voters, Measure A, or the Non-Primary Home Tax, would create an annual tax on homes in the City of San Diego that are not a primary residence and are left vacant for more than 182 days a year. Property owners would pay a tax of $8,000 in 2027 and $10,000 in 2028. Corporate-owned vacant properties would face an additional $4,000 tax the first year and $5,000 the next.

The city estimates about 5,140 homes could qualify for the tax. All revenue generated would go into San Diego's general fund.

Measure A was introduced by San Diego City Councilmember Sean Elo-Rivera, who said it could raise millions for city services during a budget deficit while also encouraging some homeowners to rent out vacant properties.

"They're people's second, third, fourth, fifth homes, or these are people who live in other states primarily. This tax would impact less than 1% of San Diegans and benefit all of us by putting homes back on the market and generating revenue that we all benefit from," said Elo-Rivera.

Supporters canvassed in Golden Hill over the weekend, arguing the measure could help address San Diego's housing shortage.

"My husband and I have decided to stay in our one bedroom apartment until we can afford to buy and we recently celebrated our seven year wedding anniversary, and are still delaying, you know, when we can have a family, when we can grow because the cost of living, it doesn't make sense to us," said supporter Itzel Maganda Chavez.

Opponents argue the measure would add to an already high tax burden while also raising concerns about privacy.

"It is a breach of privacy for the city to come in and essentially investigate whether they're living there, whether that is their primary or non primary residence," said Shane Harris, spokesperson for No on Measure A. "These people pay property taxes, utility bills, water fees, trash fees, you name it, they're already paying so much."

Harris also argues there is no guarantee the money generated by the tax would go toward housing.

"The city can essentially put this money wherever they see fit, which is a big issue for those of us who oppose because this was originally supposed to be about housing," Harris said.

Harris also raised concerns about enforcement and said the city should instead focus on building more affordable housing near transit lines.

The measure includes exemptions for some homeowners, including active duty military members deployed most of the year and people who are out of their homes for medical reasons. However, opponents argue those homeowners would still need to apply for exemptions. Between 45-70% of homes are assumed to be excluded the first year of the tax due to exemptions or properties becoming occupied.

The Office of the Independent Budget Analyst Report found the tax could generate between an estimated $9.2 million to $21.4 million in its first year. By the second year, estimates range from $10.5 million to $24.3 million. All revenue would go into the city's general fund. If approved, Measure A would take effect January 1, 2027.