San Francisco, CA Local Taxes & Fees: Vacancy Tax (2026)

Section 2904 sets an escalating rate schedule keyed to vacancy history. Under subsection (b)(3)(A), space that no person kept vacant in the immediately preceding tax year pays $250 per linear foot of Frontage, the first-year rate. Subsection (b)(3)(B) raises that to $500 per linear foot for space that was also vacant the prior year. Subsection (b)(3)(C) is the catch-all: $1,000 per linear foot of Frontage in all situations where neither (b)(3)(A) nor (b)(3)(B) applies, which covers space vacant two years running. Because the tax is measured per linear foot of frontage rather than floor area, a wide storefront owes more than a deep, narrow one with the same interior space.

Who pays turns on who controls the space under Sec. 2904(c): the owner if the space is unleased, the tenant if it is leased, and the subtenant if it is subleased. The tax is not citywide. It applies only to ground-floor Taxable Commercial Space in the Named Neighborhood Commercial Districts and Transit Districts listed in Planning Code Section 201. Exemptions cover nonprofits qualified under IRC 501(c)(3) and space under an active building permit, a conditional use application, or a construction period, so an owner actively renovating or pursuing approvals is not taxed while those steps run. The Tax Collector bills the tax annually.