Berkeley voters passed the Empty Homes Tax in 2022 to discourage long-term vacancy, charging owners of qualifying residential units that sit unoccupied for 182 days or more in a calendar year a substantial annual surcharge.
Measure M added BMC Chapter 7.54, applying an annual tax to residential properties left vacant for at least 182 days in a calendar year. The rate scales with unit type, with single-family and condominium owners facing a flat amount and multi-unit landlords paying per vacant unit. Owner exemptions cover senior medical absences, recent construction, probate, and active marketing for sale or rent. Litigation in 2023 narrowed application against certain small landlords and owner-occupants who briefly leave units, but the core tax survived. Annual self-reporting and Finance Department audits drive enforcement.
Failing to report, underreporting vacancy days, or misusing exemptions exposes owners to back taxes, penalty multipliers, interest, and personal liability for unpaid amounts attached as a property lien.
See how Berkeley's vacancy tax rules stack up against other locations.
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