San Diego vacation home/short-term rental ballot measure plan dies in committee

Proposed tax on empty second homes and vacation rentals rejected by city council committee

Jan. 28, 2026 at 7:15pm

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The San Diego City Council's Rules Committee rejected a proposed ballot measure that would have taxed empty second homes and short-term vacation rentals in the city. The measure, put forward by Councilman Sean Elo-Rivera, would have generated an estimated $17 million to $27 million annually, but was opposed by some council members and the business community who argued it would hurt tourism and cost jobs.

Why it matters

San Diego has a significant number of empty homes and vacation rentals, which has contributed to the city's housing affordability crisis. The proposed tax was aimed at freeing up housing stock and making the market more equitable, but faced pushback from those who said it would negatively impact the local economy.

The details

The proposed tax would have charged $8,000 annually for empty second homes and short-term rental properties, with an additional $4,000 for corporate-owned homes and repeat municipal code violators. Preliminary estimates suggested the tax could have generated $17 million to $27 million, but the city's Independent Budget Analyst's Office warned that if just 48% of the 10,856 affected homes were sold or taken off the market, the city would break even due to lost transient occupancy tax revenue.

  • The San Diego City Council's Rules Committee rejected the proposed ballot measure on January 29, 2026.

The players

Sean Elo-Rivera

A San Diego City Councilman who proposed the ballot measure.

Kent Lee

San Diego City Council President Pro Tem, who voted against the measure.

Chris Cate

President and CEO of the San Diego Regional Chamber of Commerce, who opposed the measure.

Raul Campillo

A San Diego City Councilman who voted against the measure.

Vivian Moreno

A San Diego City Councilwoman who voted against the measure, though she supported the empty second-home tax.

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What they’re saying

“If someone can afford to own a second home and not use it, they absolutely can afford to pay that tax, and should.”

— Kent Lee, San Diego City Council President Pro Tem (nbcsandiego.com)

“This proposal does nothing to realistically address housing costs for San Diegans. It doesn't create a single new home, and there is no requirement that the money collected be used for housing at all since it will go straight into the city's general fund.”

— Chris Cate, President and CEO of the San Diego Regional Chamber of Commerce (nbcsandiego.com)

“I'm here to advocate for the middle-class San Diegans who run small businesses, who know this tax will undermine their life's work. The city would lose more revenue from this than it ever stands to gain.”

— Raul Campillo, San Diego City Councilman (nbcsandiego.com)

What’s next

The proposed ballot measure is unlikely to move forward after being rejected by the San Diego City Council's Rules Committee.

The takeaway

The debate over the proposed tax on empty homes and vacation rentals in San Diego highlights the complex tradeoffs between addressing housing affordability and supporting the local tourism industry and small businesses. The city will need to continue exploring targeted, practical policy solutions to tackle its housing challenges.