Berkeley : Where No Vacant Unit Goes Untaxed

Starting January 1, 2024, Berkeley units left “vacant” for a total of 182 days in a given calendar year may be subject to the “empty home tax” (BMC 7.54). Single family homes, condos, duplexes and townhouses are taxed $3,000 the first year (subsequently $6,000/year), and all other residential units are taxed at $6,000 the first year (subsequently $12,000/year). Berkeley established penalties of 10% of the total tax, plus 1% interest per month.

Units occupied by the owner as their principal residence are exempt so long as the occupant-owner claims the homeowners’ tax exemption or disabled veteran exemption.  Some empty units are not considered “vacant” – units within the Building Permit Application period, units within the Rehabilitation period, and units left empty during a Disaster period or during the occupant-owner’s death / in-care period are not “vacant” for the purpose of calculating the 182-day period.

On the other hand, some occupied units are considered “vacant” – units leased to an affiliate entity of a current or former owner or co-owner, or the owner / co-owner’s spouse / domestic partner, child, or sibling, as well as units leased to travelers, vacationers, or other transient occupants are “vacant” for the purpose of calculating the 182-day period.

Information on the appeals process is expected to come out in June 2025. For more information on how to report a “vacant” unit or to claim an exemption, please visit the Empty Home Tax page of the Berkeley Rent Board: Empty Homes Tax | Berkeley Rent Board

NOTE: In late 2024 a San Francisco Empty Home Tax provision was struck down by a decision of the San Francisco Superior Court (Case no. CGC23604600). Enforcement is currently suspended, but the City of San Francisco is appealing the decision. More information can be found here: Empty Homes Tax (EHT) | Treasurer & Tax Collector