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California Moves Forward with 'Empty Homes Tax'

  //house-home.news-articles.net/content/2026/02/1 .. lifornia-moves-forward-with-empty-homes-tax.html
  Published in House and Home on Monday, February 16th 2026 at 15:36 GMT by BBC
      Locales: California, Washington, UNITED STATES

Sacramento, CA - February 16th, 2026 - California legislators are on the verge of enacting sweeping changes to address the state's persistent housing crisis, with Senate Bill 1079 - the 'Empty Homes Tax' - gaining momentum. The bill, expected to pass a final vote within the week, empowers cities and counties to levy an annual tax on vacant properties, a move proponents believe will incentivize owners to rent or sell, thereby increasing housing availability and bolstering local economies. Estimates suggest this legislation could generate a substantial $4.6 billion annually, earmarked for critical affordable housing initiatives.

For years, California has grappled with a severe housing shortage, driving up costs and forcing many residents into precarious living situations. The issue is multifaceted, encompassing zoning regulations, construction costs, and a complex web of bureaucratic hurdles. However, a significant, often overlooked component is the prevalence of vacant properties - homes that sit unused while thousands struggle to find affordable places to live. Advocates for SB 1079 argue that these vacant homes represent a wasted resource and a symptom of a system prioritizing investment over community need.

SB 1079 permits local governments to impose an annual tax of up to 1.5% of a property's assessed value if it remains vacant for a period of three months or more. The threshold is intended to avoid penalizing homeowners who, for legitimate reasons, may need to leave their properties vacant for short periods - such as during estate settlements or temporary relocation for work. The revenue generated will be dedicated to a range of affordable housing programs, including subsidies for low-income renters, funding for the construction of new affordable units, and support for homeless services.

"This isn't about punishing homeowners," stated Senator Maria Rodriguez, the bill's primary sponsor, during a press conference earlier today. "It's about addressing a systemic problem. We have a housing crisis, and we have thousands of homes sitting empty. This bill provides a mechanism to encourage owners to put those homes to use and contribute to solving the problem."

However, the bill hasn't been without its detractors. Concerns center around the logistical challenges of enforcement. Accurately identifying vacant properties requires robust data collection and consistent monitoring. Local governments will need to establish clear guidelines for defining vacancy, investigating potential violations, and appealing decisions. Some worry about the potential for false positives - properties that appear vacant but are, in fact, temporarily unoccupied for legitimate reasons.

"We support the goal of increasing housing availability, but we're concerned about the administrative burden this will place on cities and counties," said a representative from the California Association of Realtors. "Effective enforcement will require significant investment in resources and personnel, and we need to ensure that the process is fair and transparent." The association has proposed amendments to the bill, including provisions for streamlined appeals processes and clearer definitions of vacancy.

Beyond enforcement, another point of contention is the potential impact on property owners. Critics argue that the tax could disproportionately affect seniors or individuals who own properties as a long-term investment or for inheritance purposes. Some fear that the tax could discourage property ownership and lead to a decline in property values. Proponents counter that the tax is designed to incentivize action - to encourage owners to rent or sell rather than simply letting properties sit idle. They also point to the significant benefits of increased housing availability for the broader community.

The success of SB 1079 may hinge on the collaboration between state and local governments. Several cities, including San Francisco and Los Angeles, have already expressed interest in implementing the tax, and are actively developing plans for data collection and enforcement. The state legislature is also considering providing grant funding to assist local governments with the implementation process.

Experts suggest that the California model could serve as a blueprint for other states grappling with similar housing challenges. Vancouver, Canada, for example, implemented a similar tax on vacant properties in 2017, and initial reports indicate it has had a positive impact on housing availability. The California bill, however, is more comprehensive, providing a dedicated funding stream for affordable housing programs, which is seen as a crucial component of a long-term solution. The coming months will be critical as cities and counties begin to implement SB 1079, and the state monitors the effectiveness of this innovative approach to tackling the housing crisis.