An internal Board decision: Motion ordering submitted to the voters at an election to be held on November 3, 2026, an city law changing the the city's business-tax rules to impose an excise tax, commencing in tax year 2027, on persons keeping vacant or using differently parcels last used, in whole or in part, as formula retail grocery stores or formula retail pharmacies on or after January 1, 2017.
Motion ordering submitted to the voters at an election to be held on November 3, 2026, an Ordinance amending the Business and Tax Regulations Code to impose an excise tax, commencing in tax year 2027, on persons keeping vacant or using differently parcels last used, in whole or in part, as formula retail grocery stores or formula retail pharmacies on or after January 1, 2017; and increasing the City’s appropriations limit by the amount collected under the tax for four years from November 3, 2026.
How it got here
The legislation originated from a need to address the increasing vacancy of grocery and pharmacy stores in San Francisco, prompting the introduction of a tax to discourage such vacancies.
Supervisors Mahmood and Melgar introduced the initiative ordinance aimed at imposing an excise tax on vacant grocery and pharmacy properties.
The ordinance was referred to various city departments including the Planning Department and the Department of Human Resources for review and response.
The Planning Department determined that the ordinance was not defined as a project under CEQA guidelines, indicating no significant environmental impact.
The Department of Human Resources confirmed that the meet and confer requirements related to the ordinance were fulfilled.
The motion was assigned under the 30-day rule for committee action, moving it closer to a vote.
The ordinance is set to be submitted to voters for approval during the election.
Reconstructed from attached documents & the official record
The motion aimed to introduce a tax on properties that have been vacant or used for purposes other than grocery stores or pharmacies since 2017, starting in 2027. It was scheduled for a public hearing in July 2026 but has been killed and will not proceed.
This legislation proposes a public hearing to discuss a new tax on property owners who keep grocery stores or pharmacies vacant or use them for different purposes, starting in 2027. The hearing is scheduled for July 21, 2026, pending approval of a related motion.
The motion aimed to introduce a tax on properties that have been vacant or used for purposes other than grocery stores or pharmacies since 2017, starting in 2027. It was scheduled for a public hearing in July 2026 but has been killed and will not proceed.
This legislation proposes a public hearing to discuss a new tax on property owners who keep grocery stores or pharmacies vacant or use them for different purposes, starting in 2027. The hearing is scheduled for July 21, 2026, pending approval of a related motion.