Measure A is on the ballot tomorrow in the City of San Diego. It puts a tax homes on that aren't lived in full-time, which is roughly 1 percent of the inventory or about 5000 homes. Initially there is an annual tax of $8,000 specifically on second homes that are 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.
The stated goal is to open up more housing since we have a shortage but is that really what would happen? From an article in the Union-Tribune, "Should Measure A become law, it’s likely that the number of homes subject to the tax would be far fewer than 5,100. That’s the conclusion of the city’s Office of the Independent Budget Analyst, which estimates that 1,541 to 2,826 empty second homes would end up being taxed. That calculation takes into consideration properties that would fall under several exemptions provided for in the measure, as well as those instances where owners opt to sell their properties or convert them to short- and long-term rentals."
As a proponent of building wealth through buying and holding real estate I believe we have a Constitutionally protected right to acquire, use, and dispose of property freely. This is obviously balanced with zoning laws and has to also be balanced with the public good but I think this Measure goes too far. Effectively this will force some owners to sell or rent out their homes in the face of a costly tax they may not be able to afford to pay. The owners who are wealthy will just pay the tax and it will be business as usual. No new homes will be brought to the market for sale from those owners. On top of that, the revenue generated by the tax, estimated to be 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. How does that help housing?
This impacts 1 percent of our housing in the City of San Diego. This is a poorly conceived way to address housing and really does nothing to help the situation.
