Short-term rental, vacation home tax in San Diego clears first vote

SAN DIEGO (FOX 5/KUSI) -- A debate on a new tax for short-term vacation rentals, such as Airbnb's, and second homes that aren't rented out long-term could be coming to San Diego.

The proposal was approved 3 to 1 by the city's rules committee, but it's still months away from a final decision, which would be up to voters.

The proposal would charge a $5,000 tax per bedroom each year on properties, which the city says would impact about 10,644 properties in San Diego and bring in up to $135 million a year.

"Homes should be for San Diegans, not just for profit," Councilmember Sean Elo-Rivera, who initiated the ballot proposal, said.

Elo-Rivera was one of three councilmembers who voted Wednesday in favor of the measure, while Councilmember Raul Campillo was the lone 'no' vote.

"We are going to see significant economic harms and elimination of jobs; livelihoods are at stake because of this," Campillo argued.

He said this tax could drive away tourists, hurt property owners who rely on that income, and argued that it would not add housing; instead, it might force local owners to sell because they couldn't afford the tax, leading more out-of-state investors to buy up properties.

Campillo said in 2023 that the city collected $34.7 million in local Transient Occupancy Tax (TOT) from Airbnbs.

Before the vote Wednesday, opposing rallies were held outside City Council prior to the meeting starting.

“I support councilmember Elo Rivera’s proposal to tax the roughly 5,600 second homes in San Diego that sit vacant when not used by their owners," one woman said at the podium in favor of the proposal.

"More than 80 percent of hosts live right here in the city," another person said, against the tax proposal.

This is expected to be up for a second consideration in the Rules Committee in 2026 and would need to pass the full council by March to make it on the June ballot for voters to decide.