Oppose SB-789: Avoid burdensome vacancy tax

Subject: Oppose SB-789: Addressing Burdens of Vacancy Tax on Commercial Real Property

My name is [Full Name], and I am writing as a concerned constituent to express my opposition to SB-789, the proposed vacancy tax on commercial real property. This bill, while well-intentioned, presents several challenges that could negatively impact property owners and the broader economic landscape. The imposition of a $5 per square foot tax on vacant commercial properties, as outlined in Section 11951(a), poses a significant financial burden, particularly for small property owners and those in economically struggling areas. This could discourage investment and development in commercial real estate, contrary to the bill's goal of economic revitalization. Moreover, the administrative requirements detailed in Section 11952(b) create a complex compliance landscape. Property owners would need to navigate electronic registration and detailed reporting, which could be particularly onerous for those without the resources to manage such processes. This complexity may deter legitimate business activities and stifle economic growth. Additionally, the severe penalties for non-compliance, including civil penalties up to 75% of the taxes owed (Section 11956), could create a climate of fear among property owners. This punitive approach may lead to unintended consequences, such as reduced property availability and increased costs for consumers. In conclusion, I urge you to reconsider the approach of SB-789. The bill's financial and administrative burdens, coupled with its punitive measures, could undermine its intended objectives. I respectfully request that you oppose this bill and consider alternative solutions that support economic development without imposing undue hardships on property owners. Thank you for considering my perspective. Sincerely,