San Diego Considers a $5,000-Per-Bedroom STR/Vacation Home Tax as STRs Get Scapegoated AGAIN!
The San Diego City Council’s Rules Committee just advanced — on a 3–1 vote — a proposal to tax short-term rentals and “vacation homes” at $5,000 per bedroom. That is a striking number: a 2-bedroom would be $10,000; a 3-bedroom $15,000; a 4-bedroom $20,000. This would be above the TOT, property, and other taxes these homes already pay.
The measure will now be fully fleshed out, with definitions, scope, and enforcement details to come. If it keeps moving, this will be one of the biggest threats to STRs in Southern California in recent memory.
Councilmember Sean Elo-Rivera proposed this idea just a few weeks ago, and already it’s moving forward. This is exactly how fast things can turn against STR owners. When cities need revenue — or a scapegoat — STRs are an easy target. Concepts that start as talking points can become ballot measures before most owners realize what happened.
What’s in play
Price tag: $5,000 per bedroom is designed to bite — and to discourage activity outright.
Definitions: How “vacation homes” and STRs are defined will determine who pays and how broadly the net is cast. But is clear that all STRs in San Diego would be subject to the tax as currently proposed.
Process: With a 3–1 committee green light, staff and sponsors will refine details, potential earmarks, timelines, and ballot strategy.
Why Newport Beach should still pay attention
Newport Beach is not San Diego, of course. The political dynamics are different – our Council is more conservative and anti-tax, and Newport Beach’s budget is on much firmer footing than San Diego. But “different” isn’t “immune.” Wins in one big city often become the template for others. That’s why NBSTRA exists — to protect responsible STR owners here at home.
What NBSTRA will do — and what you can do
We’ll monitor every step of the San Diego proposal and flag developments that could spill over regionally.
Stay engaged. Read our updates, share them with neighbors, and don’t let misinformation go unanswered.
Model good stewardship. Compliance and being a good neighbor strengthen our position when policy debates heat up.
Tell your story. STRs support local workers and small businesses — those voices matter.
And of course, if you’re reading this and still not an NBSTRA member - you really need to join!
NBSTRA will keep a close eye on San Diego and keep you informed. The lesson is clear: things can move quickly, and staying engaged is our best defense.