Good Policy | Small Business Solutions: Commercial Vacancy Tax -- Explained

Small businesses are the literal backbone of San Francisco’s diverse neighborhoods, yet they continue to be impacted by the city’s affordabilty crisis. Escalating costs, including speculative commercial rents, have contributed to the displacement of longtime “mom & pop” institutions, as well as created barriers to entry for new small business entrepeneurs.

In this “Good Policy” video, we take a look at one symptom of this affordability crisis – commercial vacancies — and dive into an effective solution that helps level the playing field for small businesses by making affordability (not speculation) central to their storefront success. The Commercial Vacancy Tax (CVT) has already helped stabilize local business districts in San Francisco and beyond and was designed with a simple idea: incentivize landlords to keep storefronts active through affordable lease terms.

SF small business owner, Christin Evans, gives a straightforward explanation on how the tax works, the benefits it has created for small business owners, and why it earned broad constituent support across political lines. We also take a clear look at the challenges that remain — including lingering structural issues in the commercial rental market, barriers to local entrepreneurs, and the policy areas that still need attention if we want thriving, resilient neighborhood business corridors.

If you care about small businesses, walkable cities, or the future of San Francisco’s economy, this breakdown offers the context and clarity you’ve been missing.