West Coast Cities Turn to Vacancy Taxes to Grapple with Housing Crisis
3 hours ago
- #urban-development
- #property-taxation
- #vacancy-tax
- Portland, Seattle, and Tacoma are experiencing high rates of vacant commercial properties, with office vacancies reaching 27% in Portland and up to 34.7% in Seattle.
- Cities are considering commercial vacancy taxes to incentivize property owners to sell or rent vacant properties at lower rates, aiming to boost small businesses and housing development.
- Vancouver's Empty Home Tax and Speculation and Vacancy Tax reduced residential vacancies to 0.49% by 2024, though they did not lower average rents, highlighting limitations in addressing affordability.
- San Francisco's commercial vacancy tax has shown mixed results, reducing vacancies slightly but not lowering rents, with data complicated by post-pandemic recovery efforts.
- Legal barriers in Washington, such as the Uniformity Clause in the state constitution, challenge local vacancy tax implementation, though legislative exceptions like tax exemption programs offer potential pathways.
- Tacoma lacks a system to track vacant properties, and local officials express interest in vacancy taxes or incentives to repurpose underdeveloped lots for housing and commercial use, despite legal hurdles.