VACANCY TAXES

A Court Struck Down San Francisco’s Vacancy Tax. What Does It Mean Across the Bay?

Oakland and Berkeley still have vacancy taxes of their own. The San Francisco decision gives us a reason to look at them again.

It didn’t take us long to wonder about the obvious cousins across the Bay. Oakland has had a vacancy tax since voters approved Measure W in 2018, and Berkeley now has one of its own. Both remain very much alive.

The San Francisco decision doesn’t automatically take down either one. But it does give property owners — and Berkeley itself — a new appellate decision to consider.


YOU DON’T HAVE TO BECOME A LANDLORD



The Court of Appeal concluded that the Ellis Act protects not only the right to leave the residential rental business, but also the right not to enter or reenter it.



So what does the San Francisco decision mean for Oakland and Berkeley? We took a closer look at what the court actually decided, why Berkeley is already asking questions, and what could happen next.

“Typically when you own a piece of property or you own a car or you own something, you have the right to use it. You also have the right not to use it because you own it.”

— DANIEL BORNSTEIN

Some chess matches take longer than others.

If Oakland or Berkeley’s vacancy taxes are ultimately challenged, don’t expect a five-minute game. The San Francisco litigation took years to work its way through the courts.

Fortunately, most landlord problems don’t require an appellate decision. A problem tenant. A rent increase. A notice that needs to be served correctly. A buyout agreement. A lease question. Sometimes you just need an answer — and a plan.

Have something more immediate on your mind? Daniel plays the five-minute game.

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Daniel Bornstein, Esq.

Founding Attorney

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