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OPPOSE SENATE BILL 789 - STATEWIDE VACANCY TAX ON COMMERCIAL REAL ESTATE
Vacancy is largely driven by market forces—not neglect—especially as sectors like retail, office, and industrial continue to recover from the pandemic. This tax would penalize property owners during economic uncertainty and risk further destabilizing struggling markets. SB 789 would also undermine local property tax revenues, reducing property values and triggering reassessments under Prop 8—resulting in permanent funding losses for schools, cities, and essential services. Finally, the bill imposes costly administrative burdens, requiring state and local agencies to track and enforce a complex policy that has proven ineffective in cities like San Francisco and Oakland. We need to act ASAP to stop this bill from becoming law. SB 789 will be heard in the Senate Revenue and Taxation Committee on Wednesday, April 23, 2025, at 9:30 am. |
SB 789COMMITTEE MEMBERS SB 789 is going to be heard in the Senate Committee on Revenue and Taxation. We urge you to contact the committee members and ask them to vote no on SB 789. CLICK HERE to view the committee roster, then click CONTACT next to each committee member to send them a message or mail them a physical letter. A sample message can be found below. You can also call their office using the script below. | YOUR REPRESENTATIVES Additionally, we ask that you contact your own state senator where you live and/or where your company has major holdings or its headquarters, and/or any state senator you have a relationship with. CLICK HERE to find your state senator then click on their name to be directed to their website, and find the CONTACT button to send them a message or you can mail them a physical letter. A sample message can be found below. You can also call their office using the script below. |
SAMPLE MESSAGES
SAMPLE OPPOSITION LETTER [Date] Honorable [Committee Member Name] RE: SB 789 (Menjivar) – OPPOSE Dear Senator [Committee Member Last Name], On behalf of [your organization name], I am writing to respectfully express our strong opposition to SB 789 (Menjivar), which proposes a statewide vacancy tax on commercial properties. SB 789 would impose a punitive $5 per square foot tax on properties deemed “vacant” for 182 or more days in a calendar year. Rather than addressing the root causes of commercial vacancies—such as evolving market conditions and economic shifts—this bill unfairly targets property owners, many of whom are already grappling with rising costs for insurance, property taxes, maintenance, and security. Vacancy is overwhelmingly driven by factors outside the control of property owners. Penalizing businesses and property owners for economic realities will only discourage investment, hinder economic recovery, and exacerbate challenges in keeping commercial corridors vibrant and active. Furthermore, SB 789 threatens to erode the property tax base that supports vital local services. As commercial property values decline under the weight of this new tax, local governments, schools, and public services will suffer lasting reductions in revenue. We urge you to reject SB 789 and instead focus on solutions that support economic growth and community revitalization, rather than punishing property owners. Thank you for your consideration. Sincerely, [Name] | SAMPLE PHONE SCRIPT “Hello, my name is [Your Name] and I’m calling on behalf of [Your Business/Organization]. I’m calling today to urge the Senator to oppose SB 789 (Menjivar). This bill imposes a new vacancy tax on commercial properties, punishing property owners and businesses for market conditions beyond their control. Especially as many sectors are still recovering from the pandemic, adding a costly, burdensome tax like this will only make it harder to revitalize our local communities and keep properties in active use. It also risks reducing property values, which will permanently damage local tax revenues that fund schools, emergency services, and essential community programs. We urge the Senator to vote NO on SB 789 and instead support policies that encourage investment and job creation, not punish property owners. Thank you for your time.” Thank you for your support on behalf of our industry! If you have any questions, contact Senior Director of Government Relations Skyler Wonnacott at swonnacott@cbpa.com. |
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