Empty Homes Tax

OVERVIEW 

Effective January 1, 2024, the City of Berkeley will tax owners of residential units that are vacant for more than 182 days, whether consecutive or nonconsecutive, in a calendar year. Periods of vacancy that qualify for one of several Vacancy Exclusion Periods do not count towards the 182 days.  Non-profits, and properties with 4 or fewer units occupied by an owner that does not own any additional residential units in Berkeley are exempt from the tax. The Empty Homes Tax will expire on December 31, 2034, unless reauthorized by the voters before then. Learn more in the comprehensive Empty Homes Tax guidelines.

TAX AMOUNT

Single-family dwellings, condominiums, duplexes or townhouses

• $3,000 per unit for the first calendar year the unit is vacant
• $6,000 per unit for the second and subsequent calendar years

If you own more than one condominium or townhouse on a property, each will count as a separate unit for purposes of the tax.

All other vacant residential unit types

• $6,000 for the first calendar year the unit is vacant
• $12,000 per unit the second and subsequent calendar years

ANNUAL TAX RATE ADJUSTMENT

Empty Homes Tax rates will be adjusted annually in accordance with the increase in the Consumer Price Index for the San Francisco/Oakland/San Jose area.

PROPERTY-BASED EXEMPTIONS

The following properties are exempt from the Empty Homes Tax:

• Properties owned by an organization exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code.
• Owner-occupied properties that: 1) contain four or fewer residential units (including any accessory dwelling units) and; 2) are owned by a natural person or trust that owns no other residential units in the City of Berkeley.

How to Claim a Property-Based Exemption

The Empty Homes Tax Property-Based Exemption forms and instructions will be mailed to owners of any property believed to have vacant units for 182 or more days in a calendar year.  To make a property-based exemption claim you must submit the following:

1. Empty Homes Tax Property-Based Exemption Claim Form
2. The supporting documentation required in the Property-Based Exemption Claim Form

The form must be completed and sent with supporting documentation to emptyhomes@berkeleyca.gov.

VACANCY EXCLUSION PERIODS

Vacant days that fall within any qualifying Vacancy Exclusion Period do not count towards the 182-day vacancy period that results in taxation. The qualifying Vacancy Exclusion Periods are:

1. Building Permit Application Period
2. Rehabilitation Period
3. Disaster Period
4. Owner Death Period
5. Owner In Care Period
6. Homeowners’ Exemption Period
7. Lease Period
8. Environmental Remediation Period
9. Owner Impairment Period

Visit the Vacancy Exclusion Periods page for more information and the forms you will need for making a Vacancy Exclusion Period claim.

PROCESS

Owners of residential units that are vacant for more than 182 days in a calendar year will receive an Empty Homes Tax bill — unless the vacant units belong to a property has an approved exemption or Rent Board staff has determined that the vacant units qualify for a vacancy exclusion period. Empty Homes Tax payment is due within 60 days of the billing date. Late payments are subject to a 10% penalty and 1% monthly interest.

Property owners that receive a tax bill but believe their property qualifies for an exemption or exclusion, may still submit a claim for an exemption or vacancy exclusion period. The amount owed under the Empty Homes Tax will be adjusted for any exemptions or vacancy exclusions claims that are approved.

PAYMENT

Taxpayers have 60 days from the date on their tax billing statement to pay their Empty Homes Tax. Payments can be made by mail, in person at the City’s Customer Service Center, or by credit card over the phone. To make a credit card payment by phone, call the Customer Service Center at (510) 981-7200. For credit card payments, the City of Berkeley only accepts Visa and Mastercard.

If payment is not received within 60 days, a 10% penalty will be applied, along with 1% simple interest per month on the unpaid balance until it is paid in full.

APPEALS

Property owners who wish to dispute an amount owed under the Empty Homes Tax may file an appeal within 30 days of the date on the tax billing statement. Owners who wish to dispute an administrative decision on a request for exemption or vacancy exclusion period must file an appeal within 30 days of receiving notice of the decision. Appeals are reviewed by an impartial Hearing Officer and may be conducted either in person or online.

To request a hearing, please contact the City of Berkeley Finance Department at (510) 981-7200 or by email at revco@berkeleyca.gov.

Reporting Vacant Residential Units

You can download and complete the Empty Homes Tax Request for Service Form to report vacant residential units that may be subject to the Empty Homes Tax. Completed forms must be sent by email to: emptyhomes@berkeleyca.gov.