Voters passed the Empty Homes Tax at the November 8 2022 election. The Empty Homes Tax ordinance requires persons subject to the tax and persons that own certain residential units to file annual returns with the Tax Collector. Existing law provides for the administration of most of the City’s taxes, including definitions, the Tax Collector’s audit and collection authority, filing and payment requirements, rules for refunds and lawsuits, penalty, interest and citation provisions, and taxpayer confidentiality provisions among others.

The ordinance extends administrative provisions applicable to the Empty Homes Tax. It requires persons subject to the tax to file tax returns and make tax remittances by April 30 of the year following the tax year or within 45 days of any sale or transfer of the residential unit. Furthermore, each owner of a residential unit must file annual informational returns with the Tax Collector by the same deadline unless covered under the homeowners’ exemption period for the entire year or qualifying for specific exemptions.

This proposed change would ensure the administration and compliance of the Empty Homes Tax by defining clear filing requirements for tax returns and remittances, as well as informational returns for residential unit owners. It also enforces accountability by specifying the timeline and conditions under which these documents must be submitted.

The amendments are meant to facilitate the effective administration of the Empty Homes Tax by aligning it with the City's existing tax administration framework, providing clarity on filing obligations, and detailing the maintenance of records and requests for information required for the tax's enforcement.

The ordinance becomes effective 30 days after enactment, which occurs when the Mayor signs the ordinance, returns it unsigned, or does not sign it within ten days of receiving it, or when the Board of Supervisors overrides the Mayor’s veto.

The ordinance seeks the Board of Supervisors' approval to introduce provisions for administering the Empty Homes Tax, ensuring the legal framework is in place to support its implementation.