June 6, 2025

Important update about SB 789. The Vacancy Tax measure was defeated in the Senate Appropriations Committee.

This bill initially proposed a statewide vacancy tax on commercial real estate at $5 per square foot. After pushback from stakeholders, the bill was amended to remove the tax and instead, require commercial property owners to report vacancy details annually. Failure to do so would incur heavy penalties.

Both the vacancy tax and data reporting mandate on commercial properties have been removed from consideration and the bill is considered dead for now.

April 24, 2025

Important update on Senate Bill 789: Following strong opposition from industry stakeholders—including many of our clients and partners—the proposed $5/SF vacancy tax has been removed. ✅

However, we remain opposed to the bill. The amended bill would require non-residential property owners to report detailed vacancy information annually or face state-imposed penalties. As the California Business Properties Association states, “this unnecessary and expensive data collection mandate will cost the state millions and deliver little value.”

Thank you to the California Business Properties Association for the continued advocacy and for keeping the industry informed.

Read more: https://cbpa.com/news