City of Davis considering new tax to keep buildings from being left vacant
DAVIS — Vacant and boarded-up businesses can be a blight for many cities. Empty office buildings and storefronts can be a magnet for vandalism, graffiti, and attract homeless encampments.
Now, the city of Davis is considering a new idea to try and discourage places from being left unoccupied.
"Taxing property owners for residential, commercial, or undeveloped land that is vacant, and tax them for it not being in 'productive use,' " said Mike Webb, the Davis city manager.
Vacant properties in Davis could qualify for the new tax.
"Vacancy taxes" have already been passed by other cities like San Francisco and Oakland, where it costs up to $6,000 a year to leave a commercial property unoccupied.
Davis city leaders say the tax can also help prevent land speculators and foreign investors.
"So they're not necessarily an active member of the community that has a vested interest in the community, but they're purely for the financial motivations," Webb said.
"Personally, I think it's a tax grab, " said Davis real estate broker Steve Boschken.
Boschken says the city doesn't have that many empty spots.
"If we have one or two percent right now, I'd be very surprised," he said.
Boschken fears it could hurt property owners who are struggling financially.
"I don't know of any investors that just let it sit there," he said. "The reality is everybody's out trying to lease up their properties because they have tax bills to pay. They've got mortgages."
Davis city leaders are still working on the specifics and say the public will have a chance to weigh in on the idea.
"As a tax, it has to be approved by the voters," Webb said.
The city says vacancy taxes are still a relatively new idea and there could also be legal challenges in court.
