This ordinance exempts certain commercial spaces from the commercial vacancy tax if they are in designated neighborhood districts affected by long-term city construction projects starting January 1, 2025, and also exempts specific areas from January 1, 2022, to December 31, 2024. The goal is to support businesses in areas undergoing significant public infrastructure work.
Ordinance amending the Business and Tax Regulations Code to exempt from the commercial vacancy tax beginning on January 1, 2025, any taxable commercial space located in a named neighborhood commercial district or named neighborhood commercial transit district in which a City public infrastructure or construction project has a construction duration of more than 180 days in a calendar year, and from January 1, 2022, through December 31, 2024, any taxable commercial space located in the Taraval Street Neighborhood Commercial District or the Inner Taraval Street Neighborhood Commercial District.
How it got here
The legislation originated from a need to amend the commercial vacancy tax in response to ongoing public infrastructure projects in specific neighborhoods.
Supervisor Chan introduced an ordinance to amend the Business and Tax Regulations Code to exempt certain commercial spaces from the vacancy tax due to public infrastructure projects.
The Budget and Finance Committee recommended the ordinance for passage, highlighting its provisions for tax exemptions in specific commercial districts.
The Board of Supervisors passed the ordinance on its first reading, moving it closer to final approval.
The Board of Supervisors finally passed the ordinance, which will exempt commercial spaces in designated districts from the vacancy tax starting January 1, 2025.
The Mayor approved the ordinance, allowing it to take effect as planned.
Reconstructed from attached documents & the official record
