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San Francisco Vacant Homes Tax Deemed Unconstitutional

January 20, 2025

Back in October we reported about the impending tax on some homes in San Francisco that were vacant for more than half of the year. This included properties that were taken out of the rental stock for more than 6 months, as well as many second homes/pied-a-tierres. The city was scheduled to begin collecting the tax in April 2025.

Late last year, the San Francisco Superior Court heard a case brought by a group of real estate industry leaders, landlords, and other property owners in the city. After considering the case, the court ruled that the new tax violates both State and Federal Constitutions. Therefore, at least for the time being, the city will be unable to collect the tax from property owners.

The city has announced that they plan to appeal the decision, so stay tuned for updates, particularly if you're a property owner in San Francisco who determined that they were eligible to pay the Vacant Homes Tax.

You can stay up to date on the progress of the debate on the website of the San Francisco City Treasurer and Tax Collector. A recent update was posted here.

You can read more about the legal arguments made by the Plaintiffs on the website for attorneys Reuben, Junius and Rose .