Should Boston tax empty storefronts?

Some Boston city councilors are considering a vacancy tax on landlords with long-empty storefronts to help revitalize downtown and neighborhood retail areas.

By Daniel Cordova Rubio 

The City Council discussed the idea during a hearing Friday. Councilors considered a tax a potential tool to disincentivize landlords from keeping their spaces empty for years, either out of neglect or to attract a national chain.

“We have an issue with some landlords keeping places vacant,” said Councilor Ben Weber, “We’ve seen in other cities around the country that we can use … vacancy fees to promote the use of those spaces by the small businesses community.”

Justin Dolezal, a San Francisco business owner and founding member of a local small business advocacy group told the council that the Haight-Ashbury neighborhood in San Francisco saw its retail vacancy rate go from over 22 percent during the peak of the pandemic, to 9 percent last year, after the city implemented a commercial vacancy tax in 2022.

Segun Idowu, chief of Mayor Michelle Wu’s Office of Economic Opportunity and Inclusion, told the Globe the administration is not considering a tax on vacant storefronts.

“We just had a conversation on taxing on commercial real estate to ensure taxes don’t go up on residents; I really don’t think it’s the appropriate time to talk about additional taxes,” Idowu said, emphasizing the city is prioritizing an incentive, rather than punitive, approach to addressing commercial vacancies.