San Diego Special Rules Committee to Consider New Vacant Home Tax Today

City Leaders to Debate New Tax on Empty Homes

Today, Wednesday, February 25, 2026, the San Diego City Council’s Rules Committee is scheduled to convene a special meeting to discuss a controversial proposal aimed at addressing the region's persistent housing crisis. The primary item on the 9:00 a.m. agenda is a proposed tax on vacant homes, a measure spearheaded by Councilmember Sean Elo-Rivera. The meeting will take place at City Hall in the 12th-floor Council Chambers, with options for the public to attend both in person and virtually.

This "focused" proposal targets property owners who keep residential units off the market for more than half the year. If passed by the committee and eventually approved by the full City Council and voters, the measure would impose significant financial penalties on non-primary residences that remain unoccupied. Key details of the proposal include:

• An $8,000 tax for the first year of vacancy, beginning in 2027.
• A $10,000 annual tax for subsequent years of vacancy.
• A surcharge for corporate-owned empty homes, starting at $4,000 in the first year and rising to $5,000.
• Inflation-based adjustments for all fees beginning in 2029.

Proponents, led by Councilmember Elo-Rivera, argue that the tax will incentivize owners to either rent or sell their properties, thereby increasing the housing supply during a critical shortage. City staff estimates suggest the tax could generate up to $51 million in annual revenue, which would be earmarked for affordable housing initiatives. This version of the proposal specifically excludes short-term vacation rentals, a distinction made after a broader tax measure failed to gain traction earlier this year following intense public debate.

Regional Government Activity: Escondido ICE Contract

In North County, the Escondido City Council is also scheduled to meet today to address a heated local issue regarding a contract with Immigration and Customs Enforcement (ICE). The council is set to discuss an agreement involving the San Diego branch of ICE’s Homeland Security Investigations. Local residents have actively called for the city to terminate the contract, which allows federal agents to use the municipal police department’s firing range for training. The debate reflects broader regional tensions regarding federal immigration operations and local government cooperation.

Mayor Gloria’s Fiscal Context

While the Rules Committee focuses on the vacancy tax, Mayor Todd Gloria continues to prioritize the city’s long-term fiscal health. The administration is currently managing a structural budget deficit estimated at $318 million. Recent efforts to stabilize the city's foundation include consolidating departments and reducing management positions. Ahead of today’s legislative sessions, the Mayor also highlighted a $5 million state investment to expand the Peacemaker Project, a program dedicated to preventing gun and gang violence across San Diego's diverse neighborhoods.