Berkeley gave landlords a $1.4M break on vacancy tax. Critics say that's very generous'

"Berkeley officials allowed two empty apartment buildings to avoid nearly $1.4 million in taxes by interpreting the law in a way that favored landlords, which contradicts the tax's intent."

"The city has collected about $404,000 from the vacancy tax, significantly less than the multi-million-dollar annual revenue estimates predicted by its supporters."

"The tax charges owners of vacant properties between $3,000 to $6,000 per unit, with double charges for properties unoccupied for a second consecutive year."

"A 51-unit apartment building at 2057 University Ave. was identified as having the most vacant homes in Berkeley, leading to a tax bill of $306,000 for its owner."

Berkeley's new tax on vacant housing, approved by voters in 2022, has faced challenges as two empty apartment buildings were exempted from charges totaling nearly $1.4 million. Officials interpreted the law favorably for landlords, contrary to its intent. Other property owners have failed to pay over $1.5 million in taxes, while the city has collected only $404,000, far below expected revenues. The tax applies to properties vacant for over half a year, with escalating charges for continued vacancy. A 51-unit building owned by Hanumandla Raj Reddy was identified as the most vacant property, incurring significant tax bills.

Read at www.berkeleyside.org