A new ballot initiative under consideration in San Diego could impose a tax on short-term vacation rentals and secondary homes, with the revenue directed toward city services. (Source: Times of San Diego)
What’s Proposed
Councilmember Sean Elo-Rivera is behind a measure called the Vacation Home Operation Tax. If approved by voters, it would place a tax on properties used as vacation homes or short-term rentals. The plan would exempt primary residences or homes leased on a long-term basis.
Proponents argue it will generate $100 million to $135 million annually, funds that could support public safety, homelessness prevention, infrastructure, and other general city services.
Support & Rationale
One vocal supporter is former Councilmember and mayoral candidate Barbara Bry, who views the tax as a tool to shift underutilized short-term rental units back into the long-term housing supply. According to Elo-Rivera, the tax ensures that owners of vacation homes contribute for the privilege of taking housing stock off the market, while not penalizing full-time residents or long-term tenants.
Opposition & Concerns
Critics include small vacation rental operators like Paul V. Becker, who argues that many hosts don’t see large profits once taxes, maintenance, utilities, and wear-and-tear are considered. He contends the measure could discourage hosting and reduce tourism.
Becker also points out that a 2021 ordinance already limits whole-home short-term rentals to 1% of housing stock, restricts one license per individual, and enforces licensing and fines. He suggests the new tax would be redundant and economically counterproductive.
Some neighborhood residents echo calls for preserving long-term housing options. In Ocean Beach, a resident lamented the proliferation of vacation rentals at the expense of longtime renters and urged any policy that discourages conversion of housing units into short-term rentals.
Next Steps
The City Council’s Rules Committee will review the proposal on October 22 at City Hall. Should the committee advance it, the tax measure could appear on an upcoming ballot for voter approval.
