Title
Status Update on Prior Vacant Property Tax Exploration (LR25-004)
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FileID
File ID: 2026-00397
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Location
Location: Citywide
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Recommendation
Recommendation: Receive a status update on prior exploration of a vacant property tax and related outreach.
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Contact
Contact: Greta Soos, AICP, Senior Planner, (916) 808-2027, gsoos@cityofsacramento.org; Remi Mendoza, Long Range Planning Manager, (916) 808-5003, rmendoza@cityofsacramento.org; Community Development Department
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Presenter
Presenter: Greta Soos, AICP, Senior Planner, (916) 808-2027, gsoos@cityofsacramento.org, Community Development Department
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Attachments
Attachments:
1-Description/Analysis
2-Outreach Summary
3-Vacant Property Tax Adoption Pathways
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Description/Analysis
IssueDetail
Issue Detail: The topic of vacant parcels and properties has received increased attention in recent years due to concerns about blight, empty buildings and storefronts, and prolonged periods of inactivity on vacant parcels.
A formal discussion on taxing vacant properties was requested by City Council on January 31, 2023. Staff brought a discussion item to the Law and Legislation Committee on March 7, 2023, and again on December 5, 2023. At the December 2023 meeting, Committee members requested that staff conduct voter polling and outreach before moving forward with a potential measure. The results showed that while a solid majority of survey participants (57%) backed the establishment of a vacant property tax, this support fell short of the required two-thirds threshold. As a result, the City did not advance a vacant property tax measure at that time.
At the September 16, 2025 Law and Legislation Committee meeting, staff requested Committee direction to conduct additional voter polling and outreach to inform the development of a draft ballot measure for City Council consideration. The committee did not authorize staff to conduct voter polling, however requested that staff conduct outreach and return with findings.
This report provides a summary of feedback received during outreach with property owners and representatives (Attachment 2), as well as a summary of potential pathways that were evaluated as part of this effort (Attachment 3). Due to prior direction provided by Committee members, feedback from property owners, and other potential 2026 tax measures, staff is not recommending moving forward with a tax but instead focusing on an Enhanced Vacant Lot and Vacant Building Monitoring and Code Enforcement Program which will address the primary concerns and negative impacts associated with vacant properties. An update on this program will be provided separately.
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PolicyConsiderations
Policy Considerations: The following policies provide context for consideration of incentives related to vacant properties.
The consideration of additional incentives to develop or improve vacant properties and/or buildings is consistent with the following 2040 General Plan Policies:
• H-1.4 Facilitate Infill Housing Development. The City shall facilitate infill housing along commercial corridors, near employment centers, near high-frequency transit areas, and in all zones that allow residential development as a way to revitalize commercial corridors, promote walkability and increased transit ridership, and provide increased housing options.
• LUP-4.15 Vacant Property. The City shall develop regulations, mechanisms, programs, or incentives to facilitate the development or temporary active use of vacant buildings and property.
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EconomicImpacts
Economic Impacts: A special tax may incentivize property owners to develop or sell properties, leading to revitalization and potential increases in housing development and City revenue; however, they may also pose a hardship to certain property owners. Exemptions should be considered to equitably administer the tax.
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EnvironmentalConsiderations
Environmental Considerations: The discussion of incentives to develop or improve vacant lots and/or buildings consists of an administrative activity such as general policy making and is not a project under the California Environmental Quality Act (CEQA), per Guidelines Section 15378 (b)(4) and 15378(b)(5).
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Sustainability
Sustainability: Development of infill properties is in alignment with smart growth principles and has the potential to reduce greenhouse gas emissions due to increased proximity of housing, jobs, and services.
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Commission/Committee Action
Commission/Committee Action: The Law and Legislation Committee discussed the concept of a vacant property tax at meetings on March 7, 2023, December 5, 2023, and September 16, 2025. While the Committee requested additional information and outreach at various points, at the most recent meeting it did not authorize further voter polling or advancement of a ballot measure.
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RationaleforRecommendation
Rationale for Recommendation: The purpose of this report is to provide the Committee with a summary of prior analysis, outreach, and considerations related to a vacant property tax, and to formally conclude this phase of work. Based on prior Committee direction, voter polling thresholds, and outreach feedback, staff is not recommending further advancement of a vacant property tax at this time.
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FinancialConsiderations
Financial Considerations: Not applicable.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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