SB 789 Vacancy Reporting Mandate Defeated

The Vacancy Tax measure, SB 789 (Menjivar; D–Van Nuys), has been defeated in the Senate Appropriations Committee. 

What You Need to Know

SB 789 initially proposed a $5 per square foot vacancy tax on commercial properties vacant for more than 182 days a year and later shifted to a reporting mandate requiring vacancy data submission to the California Department of Tax and Fee Administration.  

Both provisions have now been removed from consideration after the bill stalled in committee. 

How It Impacts You 

Victory for Property Owners: The defeat of SB 789 means no new vacancy tax or vacancy reporting requirements will be imposed on commercial real estate owners and managers. 

Reduced Compliance Burden: Property owners will not face the administrative challenges and potential penalties that the reporting mandate would have introduced. 

Ongoing Advocacy Importance: This win demonstrates the power of unified industry action and the importance of staying engaged with policymakers to protect commercial real estate interests. 

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We will continue to monitor this legislative session and keep you informed on BOMA on the Frontline.