PPG released a detailed economic report, commissioned by a coalition of property and construction companies, analysing the proposed expansion of the Vacant Residential Land Tax.
Independent economic research & policy analysis.
Civic advocacy for San Francisco’s future.
Key findings at a glance
HOW THE EXPANDED LAND TAX CHANGES THE PROPERTY INVESTMENT EQUATION
The policy increases the carrying cost of certain vacant and undeveloped residential properties. PPG’s central concern is that substantially higher holding costs could alter investment and development decisions and ultimately discourage new housing construction.
$6,225
Additional tax each year on a $500,000 block of undeveloped residential land
260%+
Increase in that landowner’s annual tax bill compared with 2022
$10,000
Additional tax each year on a $1 million apartment that remains unsold
~1,500%
Increase in that apartment owner’s annual tax bill compared with 2022
Up to 3%
Top VRLT rate (of capital improved value), rising from 1% to 3% with consecutive years of liability
5+ years
Vacant land in metropolitan Melbourne not developed for 5 years falls under the VRLT from 2026