Vacation Home Tax Moves Forward

The vacation home tax is moving ahead — for now. 

On Wednesday, the San Diego City Council Rules Committee advanced Councilmember Sean Elo-Rivera’s proposal to tax vacation homes and empty second homes. 

“99 percent of San Diegans would not pay this tax, that is a fact,” he said.

Our Scott Lewis broke down the battle lines earlier this week. Elo-Rivera believes the city should generate revenue by forcing those with more to pay their “fair share,” as he puts it. Opponents see it as a threat to the business community and San Diegans who run short-term rentals as a small business. 

Councilmember Joe LaCava, who chairs the committee, was in favor of exploring the tax. “We should not curtail any conversation on any new revenue opportunity,” he said. “This is not the only conversation we will have on this proposal.”

Councilmember Raul Campillo opposed the tax, and said 81 percent of vacation rentals are owned by San Diegans. He said if the tax passes, it will hurt people on both sides of the equation – hosts and guests. 

Councilmember Kent Lee asked for further analysis on the tax from the Independent Budget Analyst Office (IBA). “I presume the revenues presented on the slide are overly optimistic,” said Councilmember Lee. Initial estimates from Councilmember Elo-Rivera’s office said the measure could generate $135 million annually. 

The proposal passed 3-1. Elo-Rivera’s office will work with the IBA, City Treasurer, and City Attorney’s Office to prepare more on the measure before returning it to the committee. 

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