West Hollywood City Council Rejects Vacancy Tax Ballot Measure for the November 2022 Election

At its June 6^th meeting, the West Hollywood City Council declined to place an initiative for a commercial and/or residential vacancy tax on the November 2022 Ballot. Instead, a motion was passed, by a vote of 3-2, with Councilmembers Erickson and Horvath opposing, instructing staff to monitor the results of the commercial and residential vacancy taxes in those cities that have such as taxes in place and come back to the Council with a first report by March 2023. In the interim staff is look at alternative solutions to encourage commercial and residential rental property owners to rent their units and any other solutions to address the City’s Air BNB crisis.

During the meeting, the Council was presented with information on vacancy taxes in other localities and initial polling data obtained regarding voter temperament for a commercial and/or residential vacancy tax in the City. Both Councilmembers Erickson and Horvath expressed concerns regarding the negative consequences of a vacancy tax and their opposition to moving forward with placement of such measures on the November 2022 ballot. 

Prior to the meeting, the Association submitted a letter to the City Council in strong opposition to any vacancy tax ballot initiative. Vacancy taxes are counterproductive to economic growth and a disincentive to the creation of essential new housing. We urged the City Council to seek innovative solutions to encourage housing development and construction at every level rather than imposing another tax. 

We will continue to monitor this issue, advocate for our members, and provide updates.