San Diego vacancy tax fight is heating up. Who’s raising the money?

The fight to tax property owners who intentionally keep homes vacant in San Diego is starting to fill campaign war chests, as opponents raise seven times more money than supporters in the weeks leading up to the June primary.

The biggest opponent: the California Association of Realtors.

Records show the statewide trade group has shelled out nearly $685,000 to fight the tax measure in San Diego, accounting for 95% of the money raised for the measure’s opposition so far. On the other hand, supporters have only raised $97,000 from a handful of donors, including individuals, a group connected to Alliance San Diego and a teachers union. 

Known as Measure A on the upcoming ballot, the proposal would impose a tax on property owners who leave non-primary homes vacant and off the market for most of the year in the middle of a housing crisis.

It’s a proposal that has divided San Diegans in recent months, from renters to property owners and businesses to union representatives. And it comes at a time when limited housing supply has kept rents high for years — in a region where more people fall into homelessness for the first time than leave the streets for housing.

Other cities have passed similar vacancy taxes, but if approved, San Diego would be the largest city in the state with such a law on its books.

Supporters of the measure say they aren’t surprised by the amount of money pouring in to maintain the status quo.

“The wealthy interests against Measure A will spend freely to protect their investments,” said a spokesperson for the Yes on Measure A campaign. “By voting ‘Yes’ on Measure A, San Diegans will put empty homes back on the market, support our neighborhoods, and invest in one another.”

The California Association of Realtors did not respond to requests for comment.

Shane Harris, a local business owner and activist who works as a spokesperson for the No on Measure A campaign, called the proposal a misleading attack on homeownership. There are better ways to help fix this crisis, he said.

“I don’t think this is about housing at all,” he said. “This, to me, is more being positioned as a tax on the rich.”

The records cover campaign activity through much of April and it will likely increase as ballots are mailed. But as money pours into these campaign committees, both sides are already spending it on advertising, mailing and consultants.

Supporters have spent more than $82,000 on advertising. On the other hand, opponents have spent more than $98,000 — with 75% going toward political consultants and professional services, such as legal or accounting.

One of those paid consultants is Harris, who has collected $20,200. The rest of the money so far has gone to out-of-state companies for polling and promotional mailing, and a Los Angeles-based attorney for professional services.

Initially dubbed the “empty homes tax,” the ballot measure has already faced a court challenge. A local judge ruled last month that the word “empty” could be misleading to voters and ordered it to be changed to “non-primary.”