As a result of yesterday's election, the tax beginning January 1, 2021 would be based on two factors:

• The number of feet facing the street of ground-level commercial space that owners or tenants have kept vacant and how long that commercial space has been kept vacant.
• Owners would be taxed only if a commercial space has been kept vacant for more than 182 days in a calendar year. Vacant days do not include limited periods when certain permits have been applied for or issued, or a fire or natural disaster has made a commercial space unusable.

When tenants or subtenants have kept a commercial property vacant for more than 182 days in a calendar year, they would be taxed rather than owners. Tenants or subtenants that have a two-year or longer lease agreement and operated a business in the leased space for at least 183 days in a row would not be taxed for keeping the space vacant.

This vacancy tax would apply as follows:

• In 2021, owners or tenants would be taxed $250 per street-facing foot.
• In 2022, owners or tenants would be taxed either $250 or $500 per street-facing foot if the space was kept vacant in the immediately preceding year.
• In 2023 and later, owners or tenants would be taxed either $250, $500 or $1,000 per street-facing foot depending on the number of immediately preceding years in a row the space was kept vacant.

Proposition D would increase the city's annual tax revenue spending limit for four years. This vacancy tax would not apply to certain nonprofit organizations.