San Francisco Commercial Vacancy Tax Due Feb 28

The San Francisco Commercial Vacancy Tax is intended to encourage business leases and improve vibrancy along commercial corridors.

2022 was the first year of the tax. (As it was delayed by one year)

The tax is on keeping certain commercial spaces vacant for more than 182 days (approximately six months), whether consecutive or nonconsecutive, in a tax year.

All co-owners, co-tenants, and co-subtenants must file a tax Return by February 28.

If a tenant has operated a business in Taxable Commercial Space for more than 182 consecutive days during a lease of at least two years, the tenant will not be liable for the Commercial Vacancy Tax for the remainder of that lease, regardless of whether the space is vacant.

Additionally, any organization that is exempt from income taxation under Internal Revenue Code Section 501(c)(3) is exempt from the Commercial Vacancy Tax.

However, the owner, tenant, or subtenant of a Taxable Commercial Space must file a Commercial Vacancy Tax return regardless of whether they are exempt from paying the Commercial Vacancy Tax or other taxes.