SAN DIEGO (CNS) - The San Diego City Council's Rules Committee will discuss a proposed ballot measure Wednesday, which would tax vacant second homes and short-term rental properties, but not before proponents and opponents have dueling news conferences outside City Hall.
The proposal, brought forward by Councilmember Sean Elo-Rivera, could generate between $100 million to $135 million annually for the city. The vacation home operation tax would apply to approximately 10,600 properties — about 2% of all homes in San Diego.
A coalition of short-term rental hosts from across the city, the San Diego Short-Term Rental Alliance, and representatives of the San Diego Regional Chamber of Commerce spoke outside city hall to advocate against the proposal, and 10 minutes later, Elo-Rivera spoke in support of the tax.
The tax would not apply to primary residences or long-term rentals; Elo-Rivera says the revenue would support investments in housing, homelessness prevention, infrastructure, parks, libraries and public safety.
However, critics argue the tax could harm San Diego's tourism industry and burden smaller vacation home owners.
"I think it's a bad idea as far as what it will do, impacting a lot of people who rely on short-term rentals, the communities who rely on short-term rentals, the visitors who are looking for more affordable accommodations for a number of different reasons," Paul Becker said. "I think it will hurt much more than it will help."
Becker, president of Bluewater Vacation Homes in San Diego, says the tax adds to increased taxes on trash and water services. He believes the measure will negatively impact both tourists seeking affordable accommodations and owners of smaller vacation rental properties.
If approved by the Rules Committee at its Wednesday morning meeting and later the full San Diego City Council, the measure would be placed before voters on the June 2026 ballot. It would not apply to primary residences or long-term rental properties, and Elo-Rivera said there would be additional exemptions for city residents to avoid undue harm.
"San Diego's housing crisis has left too many families priced out and too many homes sitting empty," a statement from the councilman's office read. "At a time when the city faces structural budget challenges, the Vacation Home Operation Tax offers a fair, people-centered solution to generate ongoing revenue and put housing back in service to San Diegans."
Opponents disagreed, saying what they estimate is a cost of $5,000 per impacted property and that it will fail to make housing more affordable for San Diegans.
"San Diegans are already paying more for everything and this new tax won't build a single new unit of housing or improve affordability -- it just raises costs for families and threatens neighborhood jobs," a statement from the San Diego Short-Term Rental Alliance read.
The Rules Committee has two options Wednesday: It may request further information from city departments and report back to the committee or it can head to the City Attorney's office to begin the formation of the ballot measure -- which will then return to the committee before finally heading to the city council and then voters.
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