3 weeks ago
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A controversial plan to impose an annual tax of as much as $12,000 on thousands of San Diego short-term rentals and second homes is dead for now, after elected leaders on Wednesday declined to advance the proposed levy to the full City Council.
The 3-2 vote by the Rules Committee followed a more than five-hour, sometimes emotional hearing that drew hundreds of proponents and critics who pleaded their case, with some vacation rental hosts dissolving into tears.
Councilmember Sean Elo-Rivera, who had pushed the tax as a way to expand the city’s long-term housing inventory, had hoped the council would support his request to put the proposal before the voters in June.
The Empty Second Home and Vacation Rental Tax, as it was called, was expected to affect 11,000 homes, including 5,741 whole-home, year-round short-term rentals and 5,115 second homes that are largely empty throughout the year and aren’t being rented long term. A $4,000 surcharge also was proposed for corporate-owned rentals, as well as those with repeat code violations.
Elo-Rivera’s office had stressed that the impact would fall on only 1% of San Diego homes.
Voting no were Councilmembers Raul Campillo, Kent Lee and Vivian Moreno.
“I’m here to advocate for the middle-class San Diegans who are operating small businesses and know that this tax will completely undermine their life’s work and livelihoods,” said Campillo, who had vigorously opposed the tax proposal last Octobe...
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