San Diego Measure A Vacant Homes Tax June 2026 Ballot Guide
TL;DR
- Council Approved: San Diego City Council voted 8-1 in April 2026 to place Measure A on the June 2 ballot
- Tax Amount: $8,000 in 2027, $10,000 in 2028+ on vacant second homes (183+ days vacant annually)
- Effective Date: January 1, 2027 if voters approve on June 2, 2026
- Properties Affected: 5,115 vacant second homes, concentrated in Pacific Beach, La Jolla, Mission Beach, Point Loma
- Critical Timeline: Only 7 months to sell before tax takes effect; expect market flood if measure passes
San Diego property owners with vacant second homes face a critical decision point: The City Council voted 8-1 in April 2026 to place Measure A on the June 2 ballot, as reported by KPBS, launching a tax that could cost affected homeowners $8,000 annually starting January 1, 2027. With 5,115 vacant properties in the crosshairs and only seven months until the tax takes effect if voters approve, the window for strategic action is rapidly closing.
This isn't a hypothetical proposal anymore. The Council vote already happened. Ballot placement is certain. The only remaining question is whether San Diego voters will approve Measure A on June 2, 2026—and savvy property owners aren't waiting to find out. Here's everything you need to know about San Diego's most significant vacant property tax proposal, who it affects, and why timing your response matters more than ever.
What Is San Diego Measure A? Understanding the City Council-Approved Tax
Measure A, formally titled the "Non-Primary Homes Tax," was proposed by City Councilmember Sean Elo-Rivera and approved for ballot placement in an 8-1 vote in April 2026, according to the San Diego Union-Tribune. The sole dissenting vote came from Councilmember Raul Campillo, who expressed concerns about the lack of a robust legal analysis addressing the measure's vulnerability to lawsuits.
The tax specifically targets properties that meet two criteria: (1) the home is not claimed as someone's primary residence, and (2) the property remains vacant for 183 days or more during a calendar year. This 183-day threshold means that even if you use your Pacific Beach beach cottage every summer weekend and occasional winter holidays—totaling 100 days annually—your property would still qualify for the tax.
According to city officials, San Diego has approximately 5,115 vacant second homes that would potentially be subject to this tax, as reported by NBC 7 San Diego. Of these, 5,072 are owned by individuals and 43 are corporate-owned. Perhaps most revealing: nearly half of these vacant homes are concentrated in four areas—Downtown, La Jolla, Pacific Beach, and Point Loma—highlighting the coastal concentration of affected properties.
The Tax Structure: Exact Amounts and Corporate Surcharges
Measure A implements a tiered tax structure with escalating amounts and additional corporate penalties:
Individual Property Owners:
- • 2027: $8,000 per vacant property
- • 2028: $10,000 per vacant property
- • 2029 and beyond: $10,000 annually, adjusted for inflation
Corporate-Owned Properties (Additional Surcharge):
- • 2027: $12,000 total ($8,000 base + $4,000 surcharge)
- • 2028: $15,000 total ($10,000 base + $5,000 surcharge)
- • 2029 and beyond: Adjusted annually for inflation
The payment deadline falls on April 1 each year for the previous calendar year's vacancy status. This means property owners would receive their first tax bill in April 2028 for the 2027 tax year if Measure A passes.
Revenue Projections: Where Your Money Would Go
The City of San Diego Independent Budget Analyst's Office estimates Measure A could generate substantial revenue, though projections vary widely based on exemption rates:
| Scenario | Year 1 (2027) | Year 2 (2028) |
|---|---|---|
| Conservative (65-70% exemptions) | $9.2 million | $10.4-10.5 million |
| Optimistic (45% exemptions) | $21.4 million | $24.2-24.3 million |
Revenue from the tax would flow directly to the city's general fund, which finances public safety, libraries, parks, infrastructure, emergency response, and affordable housing initiatives. Proponents argue this creates a win-win: either vacant properties return to the rental/sales market, easing San Diego's housing crisis, or the tax generates millions for city services and affordable housing programs.
For context, Vancouver's Empty Homes Tax—which San Diego's measure is modeled after—raised more than $86 million for affordable housing programs between 2017 and 2020, while reducing vacant properties by 54% from 2017 to 2022.
Who Is Affected? Property Types and Neighborhood Breakdown
Measure A casts a wide net across several property categories:
Properties Subject to the Tax
Beach vacation homes
Your family's Mission Beach cottage used 80 days per year qualifies (under the 183-day occupancy threshold)
Investment properties
Downtown condos purchased as rental investments but currently vacant between tenants for more than 183 days
Inherited properties
La Jolla homes inherited from parents that remain unoccupied while heirs decide whether to sell or rent
Pied-à-terre properties
Little Italy condos used occasionally by out-of-town owners for weekend visits
Renovation properties
Homes undergoing extended renovations (though exemptions may apply for up to 2 years in specific circumstances)
Geographic Concentration
Nearly half of San Diego's 5,115 affected properties cluster in four coastal and urban neighborhoods:
Pacific Beach
Beach cottages 2-3 blocks from the ocean, often inherited or used seasonally, with median sale prices around $1.19-1.6 million. An $8,000 annual tax represents 0.5-0.67% of the property's value annually—a significant recurring expense.
La Jolla
Luxury second homes in the Village, Shores, and Bird Rock areas command median prices of $2.5-2.55 million. While the $8,000 tax represents only 0.32% of property value for these high-end homes, the cumulative cost over 3-5 years ($28,000-$50,000) remains substantial.
Mission Beach
Vacation rentals and family beach houses on both bay and ocean sides, with median prices hovering around $1.4-1.5 million. Many of these properties previously operated as short-term vacation rentals before San Diego's STRO licensing caps created a waitlist with zero licenses currently available in this Tier 4 neighborhood.
Point Loma & Downtown
Waterfront condos and homes in Point Loma (median $1.2-1.6 million) and downtown condos (median $500,000-750,000) frequently sit vacant as investment properties or occasionally-used second residences.
Exemptions: Who Gets a Pass?
Measure A includes several exemption categories designed to protect property owners facing legitimate circumstances:
Automatic Exemptions
- Owner-occupied multi-unit properties: Properties with four or fewer units where the owner occupies one unit as their primary residence for most of the year
- Disaster-related vacancy: Homes uninhabitable due to natural disasters (up to 2 years exemption)
- New construction: Newly constructed homes actively marketed for sale or rent (up to 2 years)
- Death of owner: Properties vacant due to the owner's death while the estate is being settled
- Long-term care relocation: Properties vacant because the owner moved to a care facility
- Military deployment: Homes vacant due to military deployment or relocation orders
- Financial hardship: Properties where owners can demonstrate financial hardship
The Rental Compliance Option
Property owners can avoid the tax by renting their property for more than 183 days per calendar year. However, this creates its own compliance challenges:
- • Documentation requirements: Owners must maintain and provide proof of rental occupancy
- • Tenant screening obligations: Compliance with California fair housing laws and San Diego's Tenant Protection Ordinance
- • Short-term rental restrictions: Many coastal neighborhoods have exhausted their STRO license allocations, making short-term vacation rentals impossible without joining waitlists that extend months or years
- • Long-term rental commitment: Committing to 183+ days of rental means surrendering personal use access for most of the year
For many coastal second-home owners, the rental option fundamentally changes their ownership experience—transforming a family vacation retreat into a landlord obligation with tenant rights, maintenance responsibilities, and regulatory compliance burdens.
Financial Impact Analysis: The True Cost Over Time
Property owners need to evaluate Measure A's financial impact beyond the headline $8,000-$10,000 annual figure:
| Time Period | Total Tax Paid | Equivalent Value |
|---|---|---|
| Year 1 (2027) | $8,000 | One year property tax on $200K assessed value |
| Years 1-2 (2027-2028) | $18,000 | 1.2-1.8% of median Pacific Beach home value |
| Years 1-3 (2027-2029) | $28,000+ | Down payment on entry-level San Diego condo |
| Years 1-5 (2027-2031) | $48,000+ | Major home renovation budget |
For context, many coastal San Diego investment properties generate cap rates of only 2-3% annually. Adding a 0.8-1.2% annual vacant property tax (for an $8,000 tax on a $1 million property) can turn a marginal investment property into a money-losing proposition.
Timeline: Critical Dates Every Property Owner Must Know
San Diego voters decide Measure A's fate at the June Primary Election. Polls close at 8:00 PM.
Election results certified. If Measure A passes with a simple majority, the tax becomes law.
Tax takes effect. Any property vacant 183+ days during calendar year 2027 becomes subject to the tax.
First tax bills mailed to property owners for 2027 vacancy status.
If Measure A passes in June, expect a flood of affected properties to list for sale simultaneously. This surge could create a buyer's market with downward price pressure.
Last day to close a sale in 2026 to avoid any possibility of 2027 tax liability.
The Market Flood Scenario
If Measure A passes on June 2, property owners will face a stark choice: pay $8,000+ annually forever, rent the property 183+ days per year, or sell. When thousands of similar properties flood the market simultaneously in July-August 2026, basic supply and demand dynamics create a buyer's market with increased competition, price pressure, and extended marketing time.
Options for Affected Property Owners: Three Paths Forward
Option 1: Keep the Property and Pay the Tax
Pros:
- • Retain the property for family use
- • Maintain long-term appreciation potential
- • Preserve family legacy/sentimental value
Cons:
- • $8,000-$10,000 annual recurring expense forever
- • Tax increases with inflation after 2029
- • Corporate owners pay $12,000-$15,000+ with surcharges
- • Money spent on taxes generates zero equity or investment return
Best for: Ultra-high-net-worth families with strong sentimental attachment where $8,000-$10,000 annually is immaterial to household finances.
Option 2: Rent the Property 183+ Days Annually
Pros:
- • Avoid the vacant property tax
- • Generate rental income to offset ownership costs
- • Retain ownership and appreciation potential
Cons:
- • Landlord responsibilities and tenant rights compliance
- • Maintenance and repair obligations
- • Short-term rental restrictions in many coastal neighborhoods
- • Personal use restricted to fewer than 182 days per year
- • Documentation and compliance burden
Best for: Property owners willing to become landlords, especially those in neighborhoods with available short-term rental licenses.
Option 3: Sell Before January 1, 2027 Tax Effective Date
Pros:
- • Eliminate annual $8,000-$10,000 tax burden permanently
- • Convert property equity to cash
- • Avoid post-vote market flood competition
- • No landlord obligations or compliance requirements
- • Capital gains exclusion available (up to $250,000 individual/$500,000 married)
Cons:
- • Lose property ownership permanently
- • Forfeit future appreciation potential
- • Sentimental/family legacy considerations
- • Transaction costs (6-8% for traditional sales)
Best for: Property owners who use the property fewer than 100 days annually, inherited properties with no strong family attachment, or anyone unwilling to pay $8,000-$10,000 annually or become a landlord.
Cash Sale Advantages: 7-14 Day Closing vs. 60-90 Day Traditional Timeline
The compressed timeline between the June 2 vote and January 1, 2027 tax effective date creates unique urgency for affected property owners. This is where cash buyers provide decisive advantages:
Traditional Sale Timeline (Financed)
- 1. Listing preparation: 1-2 weeks
- 2. Active marketing: 20-60 days
- 3. Buyer financing: 30-45 days
- 4. Closing: 3-7 days
- Total: 50-105 days minimum
Cash Sale Timeline
- 1. Cash offer: 24-48 hours
- 2. Acceptance to close: 7-14 days
- Total: 10-16 days total
Risk mitigation: Cash sales eliminate financing contingencies—the leading cause of deal failures (10-15% of financed transactions).
Frequently Asked Questions
Does Measure A apply to my vacation rental if I rent it out during summer?
Yes—if your property remains vacant 183 days or more during the calendar year. Renting your vacation home for 90 days during summer and using it personally another 90 days means 185 days vacant, triggering the tax. You must rent or occupy the property 183+ days to avoid the tax.
Can I avoid the tax by visiting my second home every weekend?
No—unless you claim the property as your primary residence. Weekend visits count as personal use days, but Measure A targets properties not claimed as primary residences. If your primary residence is elsewhere and your second home sits vacant more than 182 days annually (even with weekend visits), the tax applies.
What happens if Measure A passes and I can't afford the $8,000 tax?
You have three options: (1) rent the property 183+ days annually to avoid the tax, (2) sell the property before January 1, 2027 to avoid any tax liability, or (3) apply for a financial hardship exemption (though qualification criteria remain undefined in the current measure language).
Will the tax apply if I'm renovating my property?
Potentially yes, depending on circumstances. The exemption for "newly constructed and actively marketed" properties may not extend to renovations of existing homes. However, if the renovation makes the home "uninhabitable" due to conditions similar to natural disaster damage, a 2-year exemption might apply. Consult with a tax professional for your specific situation.
If I inherit my parents' Pacific Beach home, am I immediately subject to the tax?
Measure A includes a death-of-owner exemption for properties vacant due to the owner's death while the estate is being settled. However, once the estate closes and title transfers to heirs, the property's vacancy status during subsequent calendar years determines tax liability. If you inherit on March 1, 2027 and the home remains vacant the rest of 2027 (306 days), you'd owe the tax in April 2028.
Should I sell now or wait to see if Measure A passes in June?
This is the critical strategic question. Selling now (before June 2) offers advantages: (1) avoid competition from the anticipated flood of 5,115 properties listing simultaneously if Measure A passes, (2) lock in pre-tax-anxiety market pricing, and (3) eliminate risk of getting caught in the closing timeline crunch between a June vote and January 1, 2027 effective date. Waiting offers the possibility that Measure A fails and the tax never materializes—but at the risk of facing a buyer's market if it passes.
How does a cash sale compare to traditional listing if I decide to sell?
Cash sales close in 7-14 days with no financing contingencies, compared to traditional sales requiring 60-90+ days with 10-15% failure risk due to financing issues. For property owners racing against a January 1, 2027 tax deadline (if Measure A passes), cash sales eliminate timeline risk. Trade-offs include potentially slightly lower cash offers compared to top-of-market financed offers, but the certainty and speed often outweigh the price differential—especially in a post-vote market flood scenario where pricing will face downward pressure anyway.
Can LLCs or trusts avoid the tax by claiming the property as a business asset?
No—Measure A specifically targets corporate-owned vacant properties with additional $4,000-$5,000 surcharges on top of the base $8,000-$10,000 tax. Corporate ownership (including LLCs, trusts, and partnerships) faces higher tax burdens, not exemptions. The only path to avoid the tax is occupying the property as a primary residence (difficult for corporate entities) or renting it 183+ days annually.
What are the chances San Diego voters will actually approve Measure A?
Historical data shows California statewide ballot measures pass at a 57.1% rate. Proponents emphasize the win-win of either returning vacant homes to the market or generating $9-24 million annually for affordable housing and city services. Opponents cite property rights concerns and the pending legal challenge to San Francisco's similar tax (currently blocked by a trial court with appeals pending).
Conclusion: The Seven-Month Decision Window Is Closing
San Diego's Measure A represents more than a policy debate about vacant homes and affordable housing—it's a forcing function for 5,115 property owners to make strategic decisions about assets worth billions collectively.
The facts are clear: City Council approved ballot placement 8-1, the measure appears on the June 2, 2026 ballot, and if passed, the tax takes effect January 1, 2027. Affected properties cluster in Pacific Beach, La Jolla, Mission Beach, Point Loma, Ocean Beach, and Downtown. The cumulative cost over 3-5 years ($28,000-$50,000+) rivals major home improvements or down payments.
Property owners face three paths: pay the tax annually forever, become landlords with 183+ day rental obligations, or sell before the January 1, 2027 effective date.
For those choosing to sell, timing matters enormously. Listing now—before the June 2 vote—positions you ahead of the anticipated market flood, preserves pricing power, and allows adequate closing timeline without deadline panic. Cash buyers offer particular advantages in this compressed timeline: 7-14 day closings with zero financing risk, compared to 60-90+ day traditional sales with 10-15% failure rates.
The seven-month window between now and January 1, 2027 will disappear faster than most property owners expect—especially when you factor in the 30-60 days needed to find buyers and close transactions. The property owners who act decisively now will look prescient if Measure A passes and creates the anticipated market dynamics.