San Diego’s Empty Homes Tax Proposal Mired in Controversial Claims

A political advertisement circulating in San Diego has come under scrutiny for making misleading claims about Measure A, a proposed tax on vacant second homes that will appear on the June primary ballot.

The 30-second video ad, funded by the No on Measure A campaign, falsely claims that the measure “threatens every San Diego resident and family with a $10,000 per home tax.” This statement significantly misrepresents the scope of the proposed tax, which would affect less than 1% of homes in the city.

In reality, Measure A would only apply to property owners who do not claim their homes as a primary residence and leave them vacant for more than 182 days in a calendar year. According to city records, approximately 5,100 homes in San Diego meet these criteria.

When questioned about the misleading claim, a spokesperson for the No on Measure A campaign defended the ad by arguing that the measure places the burden of proof on property owners to demonstrate their homes weren’t empty for most of the year, thereby putting “all San Diego residents at risk of being subject to the tax.”

However, this interpretation distorts how the tax would be implemented. The city plans to identify taxable properties using existing “vacation home/second home exemptions” already on file with the San Diego County Assessor’s Office. These exemptions are filed by property owners who don’t have a homeowner’s exemption but want to avoid paying the city’s Rental Unit Business Tax.

Supporters of Measure A have condemned the advertisement as disinformation. “Investors hoard homes while San Diegans pay the price,” said Andrea Guerrero, executive director of the Alliance San Diego Mobilization Fund. “Voting ‘Yes’ on Measure A requires wealthy investors to put more than 5,100 empty homes back on the market or compensate their community for the privilege of keeping them empty.”

The tax proposal, if approved, would impose an $8,000 tax on qualifying properties in 2027, rising to $10,000 in subsequent years. Corporate-owned empty homes would face an additional surcharge of $4,000 the first year and $5,000 in following years. These amounts would be adjusted for inflation beginning in 2029.

The ad also claimed that Measure A won’t “solve homelessness” or “solve housing” – statements that are technically true but misleading in context. City officials who proposed the tax have never claimed it would completely solve these complex issues.

San Diego Councilmember Sean Elo-Rivera, a key proponent of the measure, has consistently framed it as having two primary goals: returning some non-primary vacant homes to the market to increase housing inventory, and generating new revenue for the city’s general fund.

The Yes on Measure A campaign has countered with its own advertisements, claiming the measure will lead to “more homes and lower prices,” make “investors pay their fair share,” and help “San Diego communities thrive.”

While economic principles suggest increased supply can reduce prices, the city’s Office of the Independent Budget Analyst has indicated that even if all 5,100 affected homes returned to the market, the impact on affordability would likely be “minimal due to the scale of new supply.”

It’s also worth noting that the characterization of all affected property owners as “investors” may be overstated. Records indicate that only about 40 of the 5,100 homes are corporate-owned.

If approved by voters, the first tax bills would be sent in January 2028, meaning the measure would not address the city’s immediate $146 million budget deficit for the upcoming fiscal year.

As San Diego continues to grapple with its persistent housing crisis, Measure A represents just one of many proposed solutions, though its actual impact on housing availability and affordability remains a matter of debate ahead of the June primary.