San Diego advances vacation rental tax in latest try at tourism-based budget fix

Communities around Mission Bay are among those that could be affected by San Diego s proposed tax on vacation rentals File photo by Chris Stone Times of San Diego San Diego authorities have taken their first big step toward implementing a tax on vacation rentals and second homes A city council committee advanced a proposal in spite of fierce opposition from the Chamber of Commerce and other groups that would put a measure on the June ballot if it eventually receives approval from the full council The tax proposed by District Councilmember Sean-Elo Rivera would charge vacant second homes and full-time vacation rentals per room annually Elo-Rivera s office estimates the tax which would apply to about of homes in the city could generate million to million each year to help close a persistent city budget deficit Councilmember Raul Campillo the only member of the council s Rules Committee who voted against the proposal mentioned the -per-bedroom did not appear to be based on math Without a thorough and comprehensive analysis the voters will not have enough information to know if they re choosing between something that will undermine the local business activity and our city revenues or bolster it he disclosed It s going to weaken the local economic activity undermine small businesses and hamper our city s ability to deliver services Council President Joe LaCava stated the committee s action was only to continue working on the proposal including analysis from the city attorney and the city s independent budget analyst He explained the full council would likely vote in January on whether to place the measure on the ballot Elo-Rivera explained the tax would prevent out-of-town investors from displacing residents by transitioning homes into vacation rentals making homes more affordable in the process and force those investors to pay their fair share to fund city services Our office is committed to working with San Diegans to create a city that works for the people who live here he revealed Ninety-nine percent of San Diegans would not pay this tax If you live in or rent out a portion of your home you re not paying this tax Ninety-eight percent of San Diego homes and of homes that are lived in by San Diegans will not be taxed Elo-Rivera earlier this year led the push to increase the minimum wage for tourism workers again arguing that San Diego was not getting enough out of its role as a tourism mecca He likewise argued the city could extract more revenue from visitors when he pushed to charge for parking in Balboa Park and at beaches More than people testified both for and against the ballot proposal during the lengthy committee hearing This proposal represents a serious overreach of municipal authority and a troubling precedent for property rights disclosed Pacific Beach activist Scott Chipman Imposing heavy taxes on one category of home ownership crosses the line from regulation to punishment Michael Zucchet general manager of the San Diego Municipal Employees Association mentioned the tax would let the city provide improved infrastructure and masses safety park and library services It s a revenue measure unlike plenty of in the past couple decades that will not increase the cost of living for of San Diegans but will benefit of San Diegans he mentioned I strongly sponsorship this tax mentioned Gary Wonacott former president of Mission Beach Town Council It s more than about fairness It s about fiscal responsibility The presence of concentrated whole-home short-term vacation rentals results in a negative cost-benefit to the city Former District Council member Barbara Bry also supported Elo-Rivera s ballot proposal This is an crucial step in returning San Diego s neighborhoods to San Diegans making sure that short-term vacation rentals pay their fair share of the disruption they cause she explained I hope you council have the courage to do the right thing for our city