Is Arreguin's "Vacancy Registration Fee" a Solution to Downtown Berkeley Problems?
Berkeleyside is reporting on an idea put forward by Jesse Arreguin to impose a fee on vacant retail store fronts. They write:
"Arreguin thinks that Berkeley could minimize the number of vacant storefronts by charging landlords a fee when buildings lie fallow for an extended period of time. He will ask the City Council tonight to send a directive to the city manager’s office to study the issue."
As Arreguin seems to know, a simple "vacancy tax" would be illegal under California law. Municipalities may impose fees only for the actual cost of services or facilities provided by the City specifically to that property owner on account of the vacancy. The idea of a straightforward penalty for not renting out a vacant spot has been dreamed of time and again in many cities, and it always stalls on this basic point. Vacancy is a "by right" use which municipalities are prohibited from penalizing.
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