Curated by Daniel Xu
San Francisco is infamous for its expensive real estate and its unhoused population. To address those issues, voters last year approved Proposition M, which will tax owners of vacant residential properties starting on Jan. 1, 2024.
The underlying policy logic is that property becomes vacant long-term when landlords intentionally set rent much higher than what current supply and demand supports.
The initiative aims to encourage property owners either to reduce the rent they ask until a suitable tenant can be found or sell the property. In the latter case, the city itself may purchase properties put up for sale due to the vacancy tax.
The taxes raised by Proposition M will be earmarked for a “housing activation fund” that will provide rent subsidies for seniors and low-income households, as well as a program to acquire and renovate unoccupied buildings to create affordable housing.
If successful, this policy could provide a roadmap for other cities with similar housing problems. The idea isn’t entirely novel—France has had a similar vacancy tax for more than two decades.
While it will be some time before the impact of Proposition M on San Francisco can be measured, the simple fact that it was voter-approved and made into law could show where public sentiment lies on tackling housing issues.
At Bloomberg Tax, we’ll continue to follow this and similar policy proposals. As always, we’re committed to delivering expert analysis on tax and relevant housing policies that could significantly impact communities.
The Exchange—It’s where great ideas intersect.
—Andrew Leahey
Look for Leahey’s column on Bloomberg Tax, and follow him on Mastodon at @andrew@esq.social
Tax Pro Week
Last week, Bloomberg Tax celebrated Tax Pro Week to recognize the hard work, talent, and dedication of tax professionals worldwide. We published a series of short articles—one per day—about what changes tax pros would like to see in tax laws and regulations.
Beth Shapiro Kaufman of Lowenstein Sandler calls for the adoption of a uniform law on administering state income taxation of trusts.
Neil Becourtney of Smolin Lupin calls for a return to 2018 and 2019’s “kiddie tax” calculation rules.
Kassie Grishaber of FORVIS calls for an overhaul of the IRS’s tax filing due dates.
Philip G. Cohen of Pace University calls for the adoption of a worldwide tax system in place of the Tax Cuts and Jobs Act’s international tax approach.
Rochelle Hodes of Crowe calls for Congress and the IRS to include at least one simplification provision in every tax bill enacted and regulation published.
State Insights
Liz Cha and Chelsea Marmor of Eversheds Sutherland summarize recent tax developments in New York, including proposed corporate tax reforms and two court opinions on income sourcing.
Ballard Spahr’s Christopher Jones summarizes recent tax developments in Pennsylvania, including guidance on voluntary disclosure agreements and taxable purchase prices for natural gas.
Federal Insights
Marty Durbin of the US Chamber of Commerce explains why guidelines for clean hydrogen tax credits are necessary to support development in the nation’s seven regional clean hydrogen hubs.
Crowell & Moring’s S. Starling Marshall and Carina Federico give tips on how taxpayers and their advisers who are considering investment in tax-advantaged structures can avoid compliance missteps.
Global Insights
As multinational enterprises increasingly consider adapting their supply chains, Adriana Ibarra-Fernandez, Andrea Diéguez-Orozco, and Rodolfo Garcia-Aguirre of Baker McKenzie look at some factors to consider in Mexico.
Aditya Singh Chandel and Suhail Bansal of AZB & Partners discuss an Indian tribunal ruling that provides guidance on the challenge of treaty benefits by the tax authorities.
Columnist Corner
Tax law has a reputation among students as a difficult and unapproachable area of law, which has affected the field’s talent pipeline. In this week’s Technically Speaking, Andrew Leahey writes that this could change by introducing tax theory to undergraduates or law students earlier in their education.
Career Moves
Four tax attorneys are among 20 attorneys who have been elevated to partner at Ropes & Gray.
Charles C. Hwang has joined Eversheds Sutherland as senior counsel with the tax practice group in Washington, D.C.
Alex Denault has joined Berger Singerman as a partner on the business, finance, and tax team in the Miami office.
Frank Jackson has joined McDermott Will & Emery as a partner with the tax practice group in New York.
If you’re changing jobs or being promoted, let us know. You can email your submission to TaxMoves@bloombergindustry.com for consideration.
News Roundup
It’s been another busy week in tax news from state capitals to Washington. Here are some stories you might have missed from our Bloomberg Tax news team.
*Note: Your Bloomberg Tax login is required to access Tax News.
- Lawmakers are ramping up pressure on the IRS to ensure the agency’s data is secure after a former contractor pleaded guilty to stealing private taxpayer data and sharing it with media outlets.
- Puerto Rico is taking steps to be part of the global corporate tax deal’s minimum tax plan.
- Tax initiatives are on Nov. 7 ballots in multiple states. Texas stands out with a ballot question seeking to make wealth taxes unconstitutional, something that’s been discussed in other states.
- The IRS and Treasury Department have been inundated by a flood of more than 13,000 comments on proposed digital asset broker reporting requirements rules, with still weeks left before the comment window shuts.
Tax Journals
Tax Management International Journal
Singapore’s proposed tax law changes may have significant implications for multinational groups, says Ethan Kroll of Baker McKenzie.
Tax Management Memorandum
In shaping rules for taxpayers that transact in cryptocurrency, states may find it feasible to borrow substantially from their rules applicable to financial institutions, say Matt Musano, Thomas Shea, and Emily Hall of EY.
*Note: Your Bloomberg Tax login is required to access Tax Journal articles.
Attention Law Students
Do you have an original take on the law—but you’re not a lawyer yet? Our student writing competition is the perfect opportunity to show off your work.
We invite students to choose an area of law and technology and describe how it might be tested in courts, update past practices, or force a rethinking of the legal landscape.
We’ll publish the winning entry in December, and the student with the winning entry will get a swag bag of Bloomberg Industry Group products.
Our Wish List
Winter holidays are on the horizon, which means we’re entering peak shopping season. For November, we’d welcome thoughtful tax-related pieces focused on retail-related topics, such as the challenges of online or in-person sales in the post-Wayfair era. We’re also looking for pieces on sales tax audit and reporting challenges, as well as tax planning tips for companies with retail operations.
If you have an interesting, never-published article for publication, you can contact our Insights team by email at TaxInsights@bloombergindustry.com.
Our Team
We talk about tax a lot. But there’s much more that you might hear us talking about if you popped into one of our Teams meetings. Here’s a quick look at what some of us are watching, reading, and listening to this week.
Watching
Katharine Butler (Acquisitions Manager): I went to see a play called “Dear England"—a very entertaining look at the historic and current role of the England soccer team and its manager, Gareth Southgate, brilliantly played by Joseph Fiennes.
Reading
Melanie Cohen (Content Editor): Zakiya Dalila Harris’ “The Other Black Girl,” the novel that inspired the recent Hulu thriller series about a Black woman in publishing.
Listening
Daniel Xu (Content Editor): Since seeing jazz pianist Hiromi in concert last week, I’ve been listening to her latest album, “Sonicwonderland.” Not a dull moment on the record!
Stay Connected
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