Oppose SB-789: Protect Commercial Property Rights

Subject: Oppose SB-789: Protect Property Owners from Burdensome Vacancy Tax on Commercial Real Estate

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 introduces unnecessary complexity and financial burdens on property owners, particularly those who may lack the resources to navigate its stringent requirements. The bill's mandate for property owners to register with the California Department of Tax and Fee Administration and file returns electronically adds significant administrative challenges. The requirement to provide detailed documentation, such as lease agreements and utility records, is especially burdensome for small property owners. Moreover, the severe penalties for misstatements, with fines up to 75% of the taxes owed, create a chilling effect on property investment. SB-789's narrow exemptions fail to account for legitimate reasons for vacancies, such as economic downturns, potentially penalizing owners unfairly. The vacancy tax of $5 per square foot exacerbates financial difficulties rather than alleviating them, potentially discouraging property development and investment. The bill's potential for unintended economic consequences is concerning. By imposing additional financial and administrative burdens, it risks reducing economic activity and investment in commercial properties, contrary to its intended goals. I urge you to reconsider the approach of SB-789 and explore more balanced solutions that support property owners while addressing community needs. Thank you for considering my perspective. Sincerely,