Owners of multiunit buildings, single-family homes and condominiums that have been empty for more than a year could face penalty taxes, should a motion before the Berkeley City Council move to voters in November.
The S.F. Chronicle reports that Vice Mayor Kate Harrison introduced the proposal to tax corporations and LLCs that own vacant residential properties within the city’s limits. Accessory dwelling units will be exempt.
The proposal would tax smaller properties $3,000 per year and larger properties $6,000 per year. The Chronicle notes that if units stay vacant for more than two years, the tax would double. The tax is expected to generate $4.5 million-$9 million annually in the third year.
Harrison said the proposal will help address the city’s housing crisis because it will encourage property owners to rent out empty units. Similar motions have been adopted in neighboring San Francisco and Oakland.