Bay Area mayors want to tax second homes to pay for homeless relief

Democrats can not get enough in taxes—and kill the housing market at the same time.  Now a bunch of Democrat Mayors want to create special tax on second homes.  Once they do that, the values of those homes go down, forcing some to sell and others to lose equity.  Bad for the economy.

“San Francisco-based Assemblymember David Chiu wants to tax often-vacant second homes and vacation homes in California to help pay for the cost of homelessness—and the mayors of the Bay Area’s three largest cities are onboard.

Backed by nine California mayors, Chiu’s office released a statement today for Assembly Bill 1905, a plan that would quash a major tax break for second (or more) homes in the state.

Among city leaders supporting Chiu’s bill are SF Mayor London Breed, Oakland Mayor Libby Schaaf, and San Jose Mayor Sam Liccardo. Sacramento Mayor Darrell Steinberg, and Stockton Mayor Michael Tubbs. The mayors of Los Angeles, Riverside, San Pablo, and Santa Ana also signed onto the plan.

Since the Democrat Party is really an American version of the British Socialist (Labor) Party, no one should be surprised they oppose prosperity and success.

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Bay Area mayors want to tax second homes to pay for homeless relief

 “An ongoing source of state funding, leveraged by local resources and partners and matched by local governments, is essential,” says a joint letter from the mayors

By Adam Brinklow, SF Curbed,  3/9/20    

San Francisco-based Assemblymember David Chiu wants to tax often-vacant second homes and vacation homes in California to help pay for the cost of homelessness—and the mayors of the Bay Area’s three largest cities are onboard.

Backed by nine California mayors, Chiu’s office released a statement today for Assembly Bill 1905, a plan that would quash a major tax break for second (or more) homes in the state.

Among city leaders supporting Chiu’s bill are SF Mayor London Breed, Oakland Mayor Libby Schaaf, and San Jose Mayor Sam Liccardo. Sacramento Mayor Darrell Steinberg, and Stockton Mayor Michael Tubbs. The mayors of Los Angeles, Riverside, San Pablo, and Santa Ana also signed onto the plan.

Critical to the appeal of Chiu’s effort is that it would establish a permanent fund to finance homeless relief programs in California, something that the state lacks; the state currently spends emergency funds on homeless issues.

Under present California law, homeowners can deduct interest on a mortgage from their tax debt up to $1 million every year. Chiu wants to limit that deduction to just $750,000 on one home only and divert the new revenue toward the homeless fund.

Many second homes, vacation homes, and short-term rentals are classified as vacant housing by the U.S. census, who dub them “occasional use” properties. In 2018 San Francisco had 8,523 such homes—more than the number of unsheltered homeless residents in the city that same year.

Chiu hopes taxing mostly empty properties to assist people—people who are very pointedly not living in those empty homes—will prove a winner politically. “In the city and county of San Francisco, for every one person they are able to house, three more fall into homelessness,” according to the text of the bill.

According to the National Homeless Information Project, SF houses considerably more homeless residents than those who live on the streets, but the problem remains grave nevertheless.

The legislation as it’s written doesn’t distinguish between homes that are left fallow much of the year and those used as rentals, which could provoke criticism from landlord lobbies.

The California Globe also pointed out in January that in many vacant homes in rural areas remain empty because there’s not enough demand for houses in such remote locations.

In addition to Chiu’s bill, East Bay Assemblymembers Rob Bonta and Buffy Wicks recently floated a bill that would push $2 billion annually to create a permanent state homeless fund. Wicks called it “one of the biggest budget requests in the history of California.”

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. This is more shame on you politics.

    Wonder why places like Frisco and Santa Barbara have such high homeless rates? Simple government pays them to be homeless. In Santa Barbara the average “homeless” get over $1,000.00 per month to live on the streets and that does not include the freebies handed out by groups like the Salvation Army.

    On a regular basis new clothing and day packs with new toiletries are left on the city streets. Why? Because they just go to the shelter and draw new supplies.

    The Calif. Socialist Plan encourages government homelessness………

  2. If you want more of something, you subsidize it. And if you want less of something, you tax it. So, this proposal will provide us fewer people who can afford second homes and even more homeless than we have know.

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