Commercial Vacancy Tax Return Instructions (2022)

“Vacant” means unoccupied, uninhabited, or unused for more than 182 days, whether consecutive or nonconsecutive, in a tax year. The Code provides for qualified exclusions, as detailed below.

“Taxable Commercial Space” means the ground floor of any building or structure, or the ground floor of any portion of a building or structure, where such ground floor:

1. is adjacent or tangent to a Public Right of Way,
2. is located in one of the "Named Neighborhood Commercial Districts” or “Named Neighborhood Commercial Transit Districts” listed in Section 201 of the Planning Code, as those districts existed on March 3, 2020, and irrespective of whether those districts are expanded, narrowed, eliminated, or otherwise modified subsequent to that date, and
3. is not Residential Real Estate.

For 2022 the tax rate is $250 per linear foot of Frontage. The Commercial Vacancy Tax rate is calculated based on a building’s Frontage (the total length of Taxable Commercial Space that is adjacent or tangent to the Public Right of Way) rounded to the nearest foot.

If a tenant has operated a business in Taxable Commercial Space for more than 182 consecutive days during a lease of at least two years, the tenant will not be liable for the Commercial Vacancy Tax for the remainder of that lease, regardless of whether the space is vacant.

Additionally, any organization that is exempt from income taxation under Internal Revenue Code Section 501(c)(3) is exempt from the Commercial Vacancy Tax.

However, the owner, tenant, or subtenant of a Taxable Commercial Space must file a Commercial Vacancy Tax return regardless of whether they are exempt from paying the Commercial Vacancy Tax or other taxes.

The Board of Supervisors passed a legislation to permit the Office of the Treasurer and Tax Collector to disclose certain Commercial Vacancy Tax information to the public. The following information collected from the Commercial Vacancy Tax return will be made available to the public via DataSF:

• Name of the person(s) required to file a Commercial Vacancy Tax Return and whether each person filed;
• Name of the person(s) required to pay the Commercial Vacancy Tax;
• The address and block and lot number of the Taxable Commercial Space;
• If the Taxable Commercial Space was kept Vacant during a tax year; and
• The Commercial Vacancy Tax rate that applies to the Taxable Commercial Space for a given tax year.

Answer the following questions about the person or entity responsible for filing this Return. If this person or entity was an owner, tenant, or subtenant to a Related Person(s) or Affiliate(s) during calendar year 2022, you must file using a Paper Return. Find definitions of "Related Person" and "Affiliate" in the above Definitions section.

1 - Select the description that best fits your association with the Taxable Commercial Space.

Select from the drop down whether you were the Owner, Tenant, or Subtenant of the Taxable Commercial Space in calendar year 2022.

If more than one applies to you for calendar year 2022, you must file a paper Return. 

2 - When did you acquire, lease or sublease the Taxable Commercial Space?

Enter the date you acquired, leased or subleased the Taxable Commercial Space from another person(s). 

3 - Did your ownership/tenancy continue after December 31, 2022?

If your ownership or tenancy of the reported Taxable Commercial Space continued after December 31, 2022, answer YES. If your ownership or tenancy did not continue after December 31, 2022, answer NO. If you answer NO, you will be prompted to enter the date in 2022 on which your ownership or tenancy terminated.

If you have multiple, non-consecutive periods of ownership/tenancy to report, you must use the Paper Return.

4 - Did you lease or sublease this Taxable Commercial Space to another person(s) in the 2022 calendar year?

If you leased or subleased the reported Taxable Commercial Space to another non-Related Person(s) or Affiliate(s) during the period you held your interest, answer YES. If you leased or subleased the space to a Related Person(s) or Affiliate(s), or if you did not lease or sublease the space, during period you held your interest, answer NO.

If you leased or subleased the Taxable Commercial Space to a Related Person(s) or Affiliate, you must file using a Paper Return. Find definitions of "Related Person" and "Affiliate" in the above Definitions section.

5 - Did you previously file a 2022 Commercial Vacancy Tax Return for this Taxable Commercial Space, but were not required to do so?

If you previously filed a Commercial Vacancy Tax Return for this Taxable Commercial Space, but were not required to do so, answer YES to this question.  If you answer YES to this question, you will not see additional questions on this page and can click "Save & Continue."

6 - Have you confirmed that this is Taxable Commercial Space?

If you have confirmed the commercial property you are reporting on in this Return meets the definition of "Taxable Commercial Space" answer YES. If not, answer NO.  If you continue and file for a space to which the Commercial Vacancy Tax does not apply, you may receive a tax bill. 

“Taxable Commercial Space” means the ground floor of any building or structure, or the ground floor of any portion of a building or structure, where such ground floor:

1. is adjacent or tangent to a Public Right of Way,
2. is located in one of the “Named Neighborhood Commercial Districts” or “Named Neighborhood Commercial Transit Districts” listed in Section 201 of the Planning Code, as those districts existed on March 3, 2020, and irrespective of whether those districts are expanded, narrowed, eliminated, or otherwise modified subsequent to that date, and
3. is not Residential Real Estate.

If you are exempt, answer YES . If you are not exempt, answer NO.

Any organization that is exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, shall be exempt from the Commercial Vacancy Tax. 

Any person upon whom the City is prohibited under the Constitution or laws of the State of California or the Constitution or laws of the United States from imposing the Commercial Vacancy Tax shall be exempt from the Commercial Vacancy Tax.

8 - Each owner or tenant is required to file.  Do you have a co-owner or co-tenant that is filing/paying for this tax for this Taxable Commercial Space on your behalf? 

If you answer YES, the form will prompt you to enter the co-owner or co-tenant’s name, e-mail address and phone number. 

If you do not have a co-owner or co-tenant that is filing/paying for this tax on your behalf, answer NO.

Click "Save & Continue"

If you leased or subleased the Taxable Commercial Space from any other person(s) during calendar year 2022, please enter the information about the landlord.

File using the Paper Return if you leased or subleased from multiple owners/landlords or if you leased from Related Person(s) or Affiliate(s).

Landlord Name

Enter the name of the landlord.

Landlord Business Name

Enter the trade name (doing business as) for the landlord’s business.

Landlord Email

Enter the email address of the landlord.

Landlord Phone 

Enter the phone number of the landlord.

Click “Save & Continue"

If you leased or subleased the Taxable Commercial Space to any other person(s) during calendar year 2022, please enter the information about the tenants or subtenants.

Tenant Name

Enter the name of the tenant or subtenant. 

Tenant Business Name

Enter the trade name (doing business as) for the tenant’s or subtenants.

BAN

Enter the business account number (BAN) of the tenant’s or subtenant's business, if applicable.

Email

Enter the email address of the tenant or subtenant.

Phone

Enter the phone number of the tenant or subtenant.

Start Date

Enter the date the Taxable Commercial Space was leased.

Did the lease continue after 12/31/2022?

If the lease continued beyond 12/31/2022, check the box.  If the lease ended on or before 12/31/2022, do not check the box.

Lease End Date

If the lease did not continue beyond 12/31/2022, enter the date the lease or sublease ended.

If you reported at least 183 days of tenancy or ownership in calendar year 2022 during which the space was not leased to another person(s), please enter the following information.

Was the Taxable Commercial Space occupied, inhabited, or used for any of these days?  

If the Taxable Commercial Space was occupied, inhabited, or used for any of the days that you did not lease the space to a person other than a Related Person or Affiliate, answer YES. If the Taxable Commercial Space was not occupied, inhabited, or used for any of the days that you did not lease the space to a person other than a Related Person or Affiliate, answer NO.

Find definitions of "Related Person" and "Affiliate" in the above Definitions section.

If you answer YES, enter the days during calendar year 2022 that the Taxable Commercial Space was occupied, inhabited, or used, but not leased or subleased to a person other than a Related Person or Affiliate.

Start Date

Enter the start date that the space was occupied, inhabited or used by non-Related Person(s) or Affiliate(s).

End Date

Enter the end date that the space was occupied, inhabited or used by non-Related Person(s) or Affiliate(s).

Reason

Enter the reason that the space was occupied, inhabited or used.

Click "Save & Continue"

If you qualify for an exclusion or exemption during the period reported for the Taxable Commercial Space you are reporting on this Return, answer YES. If you answer YES, you will be prompted to enter additional information about that period.  If you do not qualify for an exclusion or exemption, answer NO.

Click “Save & Continue.”

Exclusion and Exemption Periods

“Qualified Conditional Use Application Period”  means the 183-day period following the date that a complete application for a conditional use permit for use of Taxable Commercial Space is filed with the City, but if the Planning Commission or its successor agency does not grant or deny that application within 183 days, the Conditional Use Application Period means the period following the date that the application is filed through December 31 of the year in which the date 183 days from the application filing date falls. Notwithstanding the preceding sentence, if more than one complete conditional use permit application is filed by or on behalf of one or more persons in the Taxpayer’s Group for the same Taxable Commercial Space, the Conditional Use Application Period shall mean only the applicable period following the date the first complete application is filed with the City by or on behalf of anyone in the Taxpayer’s Group.

“Qualified Construction Period”  means the one-year period following the date that the City issues a building permit for repair, rehabilitation, or construction with respect to Taxable Commercial Space in a building or structure, provided that if the City issues multiple building permits to or for the benefit of one or more persons in the Taxpayer’s Group for the same Taxable Commercial Space, the One-Year Construction Period shall mean only the one-year period following the issuance of the first building permit to or for the benefit of anyone in the Taxpayer’s Group.

 “Qualified Disaster Period”  means the two-year period following the date that Taxable Commercial Space was severely damaged and made uninhabitable or unusable due to fire, natural disaster, or other catastrophic event.

What is the total length (in feet) of the Taxable Commercial Space that is adjacent or tangent to the Public Right of Way? 

Enter the total length (in feet) of Taxable Commercial Space that is adjacent or tangent to a Public Right of Way, rounded to the nearest foot.

“Public Right of Way” means the dedicated public alleys, boulevards, courts, lanes, roads, sidewalks, spaces, streets, and ways within the City, which are under the permitting jurisdiction of the Department of Public Works.

In general, block maps on file with the San Francisco Assessor have parcel boundary lengths, but these should only be viewed as general guides and the actual linear feet of Frontage is the basis for the tax.

Tax Summary

This page provides a summary of all the information reported on this Return and a calculation of the amount of Commercial Vacancy Tax due.

A. Total days of ownership/tenancy

This line will show the number of days reported in this Return in the calendar year that you or a Related Person or Affiliate owned or leased the Taxable Commercial Space.

B. Number of days leased or subleased to another person

This line will show the number of days reported in this Return that you or a Related Person or Affiliate leased or subleased the Taxable Commercial Space to another person or persons.

C. Number of days inhabited, occupied or otherwise used

This line will show the number of days that the space was not leased or subleased to another person, but was reported in this Return as occupied, inhabited or used during the period reported, inclusive of the start and end dates.

D. Number of days excluded/exempted

This line will show the number of days reported in this Return that are subject to the exclusion and exemption period.

E. Number of Days Vacant

This line will show the number of days reported on this Return that the Taxable Commercial Space was unoccupied, uninhabited, or unused during calendar year 2022.

Enter the information requested at the bottom of the page and submit the Return. If you are an agent of the taxpayer authorized to sign this Return on the taxpayer’s behalf, you must have a validly executed Power of Attorney Declaration (Form POA-1). 

By clicking submit, you are certifying under penalty of perjury that you are the taxpayer (including an officer, general partner, member manager, executor, trustee, fiduciary, or other individual with the authority to bind the taxpayer), or an agent of the taxpayer authorized to sign this Return on behalf of the taxpayer pursuant to a validly executed Power of Attorney, and that you have examined the Return and all accompanying schedules or worksheets and have determined that, to the best of your knowledge and belief, all of the information is true, correct, and compliant with all the requirements in Articles 6 and 29 of the Code.  You are also acknowledging that you are providing information in response to a request for financial information pursuant to Code section 6.5-1, and that you are required by law to complete this Return in its entirety and that the Return is subject to audit.

You will see a Confirmation and Courtesy Calculation Page. This page will show your principal tax amount. If you are filing late, it will also calculate any penalties and interest. The calculations displayed will NOT include recent payments, or payments made to other tax types.

Principal

This line displays the principal tax amount for the indicated tax type, based on your Return.

Administrative Fee

This line will display $55 administrative fee for late Returns.

Late Filing Penalty

This line will display late filing penalties for late Returns. There are no late filing penalties for 2022.

Late Payment Penalty

This line will display the estimated late payment penalties for this tax type.  Information regarding late payment penalties and interest can be found here.

Interest

This line will display the estimated interest calculation for this tax type.  Information regarding late payment penalties and interest can be found here.

The Office of the Treasurer & Tax Collector’s online payment portal allows you to make an online payment, or to print a payment coupon for mailing a payment. Payments are due on or before February 28, 2023. Online forms must be transmitted before midnight on February 28, 2023. Payments must also be received or postmarked on or before February 28, 2023. 

If a payment is not honored by a financial institution, for any reason, the tax payment is null and void and a $50 returned payment fee will be charged.

Choose Method of Payment

Once you select which obligations you wish to pay, you may select from the four options at the bottom of the page:

Cancel will take you to back to the login screen for the Payment Portal.

To Pay By Check:

Print Payment Stub will generate a payment coupon for you to mail in your payment or pay in person. Please note that if you select more than one tax or fee to pay, the payment coupon will appear as a table on the page and you will have to submit the entire page with your check so our office can allocate your payments correctly.

Submit only the payment stub with check payable to "San Francisco Tax Collector”, write the Business Account Number on your check.

 Mail to: San Francisco Tax Collector, P.O. Box 7425, San Francisco, CA 94120-7425.

Online Bill Payment (Payment Portal)

Electronic payments with debit, credit or electronic check (eCheck) are processed through our service provider CityBase. Electronic Check will take you to our online payment partner CityBase to pay by electronic check. Please note that there is no convenience fee for this service.

Please read the information on the CityBase payment page about acceptable payment types and convenience fees associated with each. Be advised that CityBase confirmation only indicates a receipt of your payment information. It may take 5-10 business days for the payment to process and clear with your financial institution. See additional online payment instructions below.

On the Payment Options and Accessing Your Return page, click Payment Options to go to the Payment Portal, which will display your current and paid obligations. For your information, Business Account Number, Business Name, and address on file are displayed at the top of the page.

Note that payment of displayed obligations may not constitute payment in full of all tax liabilities. This does not reflect any obligations referred to collections.

The Payment Portal contains two tabs; “Due” and “Paid.” If your business has filed taxes and fees in the past year, those obligations will display on this page in addition to your Gross Receipts Tax obligation for tax year 2022.

Due Tab
The first tab is “Due,” which displays all taxes and fees that have been filed, but not paid.

Select to Pay Column
You may click the button at the top of the list of obligations to “Select All” or “Unselect All” obligations. You may also check the box in each row of the column “Select to Pay” to select individual taxes/fees to pay.

Tax Type Column
This column provides a description of the tax or fee that has an obligation. Most businesses will just see “Gross Receipts” unless you have other obligations.

Tax Year / Period
This column provides the year and period for the tax or fee. For the annual return, the four digit tax year and the period “04” will be displayed as “2022/04” for each tax. Other taxes or fees may be displayed.

Name
This column displays your business name.

Street Address
This column displays the address we have on file.

Bill Number
This number is for internal use.

Amount Due
This column displays the amount due for each obligation.

Amount to Pay
The cells in this column are set by default to zero. Once you check the box on the left to select an obligation to pay, the amount to pay will display in this column. If you do not wish to pay this amount, you may edit the amount in this cell to an amount less than the amount due. This action will change the amount you pay by credit/debit or the amount on the payment coupon, depending on the payment option you choose. Note that penalties and interest will accrue on unpaid amounts remaining after deadlines until paid.  If you need further assistance, submit an online request for service, or call 3-1-1 from within San Francisco or 415-701-2311 outside of San Francisco.