On October 31st, litigation to strike down the residential vacancy tax in San Francisco Superior Court succeeded at the trial court level.
The Superior Court sided with rental property owners on all causes of action, finding that the vacancy tax violated the Constitution as an unlawful affront to the Takings Clause, Substantive Due Process, and Equal Protection. In addition, the measure poses an unlawful burden on privacy interests and is preempted by the state’s Ellis Act.
As it stands right now, the residential vacancy tax is no longer in effect!
While it is almost certain that the city and county of San Francisco will appeal the Court’s decision, the ruling is a monumental victory for all rental property owners who otherwise would have been subject to the tax.
By the city’s own estimates, in striking down the vacancy tax, it will save San Francisco rental property owners an estimated 9 million dollars in 2024 alone.