San Diego Rules Committee Blocks Tax on Empty Second Homes and Vacation Rentals

Overview

• The City Council’s Rules Committee voted 3-2 to stop the measure from advancing to the full council, keeping it off the June ballot for now.
• Only Council President Joe LaCava and Councilmember Sean Elo-Rivera supported moving the amended plan forward, while Raul Campillo, Kent Lee and Vivian Moreno opposed it.
• The proposal sought an $8,000 annual charge on whole-home short-term rentals and empty second homes, with $4,000 surcharges for corporate ownership and repeat code violations, potentially reaching $12,000.
• Backers estimated the policy would target roughly 11,000 properties citywide, but revenue projections varied widely and the city’s budget analyst warned of possible net losses if tourism taxes fell.
• After a five-hour hearing with hundreds of speakers and a late attempt to narrow the tax to empty and corporate-owned properties, opponents including Airbnb celebrated the outcome as Elo-Rivera vowed to pursue alternative housing-focused policies.