A proposed ballot measure to tax empty second homes in San Diego cleared a key hurdle Wednesday. It’s now headed for a full city council debate after unanimously passing the Rules Committee following about two hours of public comment and debate. The hearing came about a month after Councilmembe r Sean Elo-Rivera brought forth a proposal to tax both empty second homes and vacation rentals, but rental owners and opponents packed city council – including some he alleged were paid to be there – and the measure failed. The new proposal applies only to second homes in the city of San Diego that property owners choose to keep vacant for at least half the year. The city says that’s about 5,115 homes: 5,072 owned by individuals and 43 corporate-owned, with nearly half located downtown, in La Jolla, Pacific Beach or around Point Loma. The proposed tax would be $8,000 on each empty second home in 2027, then $10,000 in 2028, increasing with inflation each year thereafter. Corporate-owned properties would see an additional $4,000 charge on top in 2027, then $5,000 the following year, also increasing with inflation. There are some exceptions, like for homes that have experienced a wildfire or natural disaster, if a relative lives in the home, for military service members who have been relocated or in the period immediately after an owner dies, among others. The Independent Budget Analyst estimated the tax could bring in between $12.1 million and $23.8 million in its first year, then between $15.3 million and $30 million in its second year. Elo-Rivera said the main objective is to incentivize those property owners to sell or rent to San Diegans, while the potential revenue is secondary, as the city faces a budget deficit. “The primary goal remains the same: put homes that are sitting empty in a housing crisis back on the market,” Elo-Rivera said. “I can’t continue to listen to San Diegans tell stories about working two or three or four jobs, doubling up in homes, delaying the start of families, while knowing that there’s 5,100 homes that are sitting empty. It’s not OK.” Many speaking in favor of the measure were labor organizations, which contend their members have to live far from work in San Diego, or advocacy groups, largely focused on homelessness and affordability. “My husband and I, there’s just no way that we can even consider San Diego a place to call home in the long run,” Itzel Maganda-Chavez of Alliance San Diego said. “We’ve had to delay growing our family because, as it stands, we’re in a one-bedroom house, and there’s really no option for us to be able to get out.” But some critics in public comment pointed to other cities like San Francisco, where a similar tax was struck down in court. “Why move forward at this time?” one commenter asked. “This would be an embarrassing and messy situation. With recent debacles — 101 Ash Street, trash fee and Balboa Park parking fee — the city’s residents are losing trust and faith in their elected leaders. Why risk doing it again by rushing this ballot measure through? Forcing owners to sell or forcing them to rent is a violation of basic property rights.” Elo-Rivera said he was “very confident” in the legal standing of the proposal as drafted, emulating a measure in Berkeley more than San Francisco. It now heads to a full city council debate on March 3, and if it passes there, it will be placed on the June primary ballot. ...read more read less