California Lawmakers to Consider Vacancy Tax on Commercial Property

Multiple property owner organizations, taxpayer associations, and chambers of commerce oppose the extra taxes and paperwork.

The Transamerica Pyramid in San Francisco on May 11, 2023. The downtown area has struggled to keep retail and commercial properties rented out since the pandemic. Justin Sullivan/Getty Images

A California state senator is proposing a tax on vacant commercial properties, saying empty buildings and storefronts reduce business vitality, lower tax revenue, and create public nuisances.

Democratic state Sen. Caroline Menjivar of San Fernando Valley authored Senate Bill 789, which will be heard by the Revenue and Taxation committee on April 23. The bill does not specify the amount of the tax.