🎯 STRisker: Bulletin - San Diego, CA

San Diego’s $8,000 STR Tax Proposal Sparks Debate

San Diego may soon ask voters to weigh in on a bold plan to tackle housing shortages: an $8,000 annual tax on short‑term rentals and second homes that sit empty. Councilmember Sean Elo‑Rivera is leading the charge, with a proposal that also adds a $4,000 surcharge for corporate‑owned vacation properties.

San Diego councilman floats taxes on short-term rentals, vacation second homes

The proposed tax would apply only to second homes that sit vacant and to whole-home short-term rentals, not to primary residences, renters or long-term rentals, according to Sean Elo-Rivera’s office. The measure would impact fewer than 1% of San Diegans. NBC 7’s Shelby Bremer reports.

NBC San Diego

The measure, revised since its October debut, drops the earlier per‑bedroom levy in favor of a flat fee per home.

Elo‑Rivera says the goal isn’t revenue—it’s housing.

“Every house in our city that is not being used as a home impacts our housing supply,” he explained. By his office’s count, roughly 11,000 homes could be affected, including 5,741 whole‑home rentals and 5,115 second homes sitting largely empty.

Short-Term Residential Occupancy (STRO) | City of San Diego Official Website

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Exemptions would cover owners facing hardships, such as disasters, military service, or long‑term care. Hosts who rent out rooms or their entire home for fewer than 20 days a year would not be taxed.

The Rules Committee will revisit the proposal Jan. 28, with a March 6 deadline looming for June 2026 ballot measures. Elo‑Rivera believes the tax could raise $90 million annually, but insists revenue is secondary. “If this tax resulted in zero revenue, that would mean 11,000 homes were returned to the market,” he said.

Opposition is strong.

The Chamber of Commerce argues the tax punishes residents and threatens San Diego’s tourism economy. Airbnb, which says 81% of its hosts are locals, is lobbying hard against the proposal, warning it will hurt families and small businesses. The company’s PAC has millions ready to fight.

Elo‑Rivera insists the surcharge is aimed at “bad actors,” citing past abuses where landlords used proxies to secure more than 100 licenses. He says the tax would raise costs for those running “mini‑hotels” and help restore neighborhoods.

With a March 6 deadline approaching, San Diegans may soon decide whether homes should be taxed when they’re left empty or returned to the housing market for locals.

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Trying to keep up with the main players in the STR game? Know your councilmembers, commissioners, committee chairs, and key staff that are part of the process.

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