San Fran, with voter approval, stole $5 Millon, so far, from property owners. The crime? They did not rent they commercial facilities. In the end, the consumer pays for this—another reason San Fran is so expensive.
“”The entire idea of the tax wasn’t to tax people, it was to encourage them to get realistic about their expectations of rent for small businesses,” explained former San Francisco Board President Aaron Peskin, who authored the measure.
“As Supervisor Peskin said, it’s the most avoidable tax there is. You don’t have to get taxed, just rent your damn storefront,” insisted Earl Shaddix of the Economic Development on 3rd in the Bay View District.
Are these officials’ stupid—or think we are stupid. Corporations do not pay taxes—never have, never will. All taxes are paid by people. In this case higher rents for worthless stores. The good news is that San Fran is losing population, workers and has a deficit of $800 million—the city is in the death spiral of a DOOM LOOP. This is a suicide, not a murder.
Remember that vacant storefront tax in San Francisco? Here’s how that’s going
So far, the Office of the Treasurer has collected $5 million
ByLyanne Melendez ,abc7, 5/29/25 https://abc7news.com/post/remember-vacant-storefront-tax-san-francisco-heres-how-going/16588700/
Remember the vacant storefront tax to penalize San Francisco landlords who continue to leave their commercial spaces empty? Here’s how that’s going.
SAN FRANCISCO (KGO) — A few years ago, San Francisco passed a tax on vacant storefronts. It’s meant to penalize landlords who continue to leave their commercial spaces empty.
The message was simple, leave it sitting empty and the city will tax you.
“The entire idea of the tax wasn’t to tax people, it was to encourage them to get realistic about their expectations of rent for small businesses,” explained former San Francisco Board President Aaron Peskin, who authored the measure.
“As Supervisor Peskin said, it’s the most avoidable tax there is. You don’t have to get taxed, just rent your damn storefront,” insisted Earl Shaddix of the Economic Development on 3rd in the Bay View District.
It seems to be working in many commercial corridors.
Let’s take North Beach which had a 10% vacancy rate right before the tax was passed in 2020.
“It’s half of that now. Same is true for neighborhood commercial districts all over the city,” revealed Peskin.
The Haight-Ashbury commercial district is another example of the effectiveness of the tax.
“Our bars – Hopson’s Choice – they just signed a lease there and Club Delux, that’s another lease that was signed there. So almost all of our vacancies are getting filled in at this point,” said Christin Evans the owner of the independent bookstore, Booksmith.
One space on Haight Street sat empty for eight years, but it was leased a few months ago by a children’s store called “Fun on Haight.”
The pandemic hit Haight Street hard.
“At our peak, we were at 32 out of 150 were closed. Now, we’re below 14,” added Evans.
Any space vacant for more than 182 days would have to pay $250 per foot of the width of the building.
So, if the frontage space is 25 feet wide, multiple that by $250. The tax would then be $6,250. It doubles after the second year and so on.
San Francisco is better — lower crime, fewer tents, and more people coming back to the office. But it doesn’t feel better to many people. Here’s why.
What many don’t realize is that all property owners or tenants must file the tax form every year whether the space is occupied or not.
So if things are going so well, why are there still so many vacant storefronts in the downtown area?
It’s hard to believe now, but the law excluded downtown and Union Square.
“It may be time to consider a downtown commercial vacancy tax but at the time, five years ago, this was really aimed at neighborhood commercial districts at at time when downtown was thriving,” said Peskin.
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Downtown is doing much worse than the neighborhood commercial corridors.
But even with this tax, it takes more than just desire for a small business to occupy any space.
“We are starting to see that renaissance again of new businesses,” said Shaddix as we toured 3rd Street in the Bay View with him.
His organization helps small business understand the grants and awards that are available to them.
For example, in the case of Vanessa Lee, the city waived all the permits needed to open Smoke Soul Kitchen, saving her about $2,000.
“Luckily I met some great non profits who really kind of pushed me and propelled me forward into starting my business, and showing me how to run a business and giving me the courage and strength to do it and so, here I am,” said Lee with a smile.
She opened her restaurant in the Bayvew three months ago after the space had been empty for three years.
The Office of Economic and Workforce Development has awarded $44,000 to eight businesses in the Bayview to improve the property and purchase equipment.
“Our vacancy rate there is down to 8% – more work to do but that’s a very healthy vacancy rate and something we are excited about for such an important and rich, and thriving neighborhood,” said Laurel Arvanitidis of the Office of Economic and Workforce Development.
“I’m not a billionaire. I don’t have a million dollars to do this. I’m just kinds of a hard working San Franciscan who wants to offer something to people in my city and so anyone can do it if I can,” said Lee.
The tax was paused during the pandemic but resumed in 2022. The Office of the Treasurer and Tax Collector said it has received $5 million so far from people complying. The money goes into the small business assistance fund to help people like Lee.
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