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

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.

"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."

Read at www.berkeleyside.org