Santa Barbara will explore bringing a residential and commercial vacancy tax ballot measure to voters, but not until the November 2028 election. 

The City Council voted 5-2 on Tuesday to direct staff to explore a vacancy tax.

The city’s finance director, Keith DeMartini, explained that a vacancy tax would have to go on the ballot that also has a mayor or City Council election, and it’s already too late to add something to the upcoming Nov. 3 election.

Several council members have said that the goal of a vacancy tax wouldn’t be to generate revenue — although that would certainly be a benefit — but to change behavior.

Councilwoman Kristen Sneddon said she hopes it encourages people with second or third homes to live in them or rent them out.

“Up on the Riviera, maybe close to a third of homes are second or third homes that are vacant, and it really impacts the fabric of a neighborhood and your sense of community and safety,” Sneddon said.

“It does affect our local tax base also with people who are volunteering or shopping or visiting downtown, so I think there would be a net positive to the budget with people actually inhabiting those spaces year-round.”

Council members Sneddon, Meagan Harmon, Oscar Gutierrez, Wendy Santamaria and Mike Jordan voted to direct staff to explore a tax measure.

Mayor Randy Rowse and Councilman Eric Friedman voted against it, citing the extra burden for city staff and concerns that it would not fix vacancy issues.

“It’s a disincentive, and I think it’s not how you approach housing production and/or commercial vacancy resolution,” Rowse said.

The council is set to continue budget deliberations on June 30.