California cities considering vacancy fees

[T. A. Gardner]

As California businesses and residents leave, in droves, more buildings stand empty. The loss of tax revenue is hurting government--duh! So, the government's solution is to penalize building owners for not having tenants by instituting a "vacancy fee."

Los Angeles neighborhood considers vacancy fee as empty homes, storefronts strain housing market

At the center of the proposal is the rising cost of living.

www.yahoo.com

No doubt, the result of this will be an increase in the rate of abandoned buildings where owners simply won't pay because it's not profitable for them to pay. They just let the building go. That's what's happened everywhere else the cost of continuing to maintain a building at a loss has occurred.

California is entering the 'death spiral' economically.

Newsom’s California: Latest Evidence of a Death Spiral - R Street Institute

SACRAMENTO — After Gov. Gavin Newsom signed Assembly Bill 1228, raising the minimum wage for fast-food workers and creating a council to regulate working conditions, the bill’s author issued a typical highfalutin statement. “We did not just raise the minimum wage to $20 an hour,” said...

www.rstreet.org

California's Fiscal Death Spiral: Is D.C. Watching? - Reason Foundation

In a Washington Post op-ed on Monday, Robert Samuelson offers a must-read, prescient warning that every American taxpayer should read—stop growing the federal government, or risk a California-style fiscal death spiral (emphasis mine): California’s budget debacle holds a lesson for … Continued

reason.org

California’s $125 Billion Death Spiral – California Globe

californiaglobe.com

 

[Diogenes]

Didn't Democrats already try exit taxes for people leaving CA?

---

Yes. California Democrats have repeatedly proposed measures that functioned as (or included) exit taxes on high-net-worth people leaving the state; none became law.


The main examples:

• AB 2088 (2020): Proposed a 0.4% annual wealth tax on net worth over $30 million (or $15 million for married filing separately). It included a provision that would have continued taxing certain former residents for up to 10 years after they left California.
• AB 259 (later, around 2023–2024): A similar wealth-tax concept with rules that would have affected certain former residents for up to four years.

The Franchise Tax Board can (and does) aggressively audit residency claims and continue taxing California-source income or previously earned amounts (e.g., certain deferred compensation, California real estate, or business interests) after someone moves.


As of August 2026, the closest active proposal is Proposition 40 (the “Billionaire Tax Act”), a one-time up-to-5% tax on the net worth of California residents/trusts over roughly $1 billion (as of a January 1, 2026 residency date in the measure). It is a ballot initiative scheduled for the November 2026 election.


In short: Democrat lawmakers in the Democrat-dominated legislature did try versions of exit/wealth taxes that would have followed high-net-worth people after they left.

 

[cawacko]

San Francisco has talked about a vacancy tax. These government officials think owners are simply choosing to leave their property vacant for reasons such as wanting to wait for a redevelopment opportunity.

In reality most of these properties are vacant from lack of demand or the current rent doesn't pencil. Not sure why you punish an owner for that.

And California is not in a death spiral. Big issues? Absolutely. Death spiral? No.

 

[Yakuda]

As California businesses and residents leave, in droves, more buildings stand empty. The loss of tax revenue is hurting government--duh! So, the government's solution is to penalize building owners for not having tenants by instituting a "vacancy fee."

Los Angeles neighborhood considers vacancy fee as empty homes, storefronts strain housing market

At the center of the proposal is the rising cost of living.

www.yahoo.com

No doubt, the result of this will be an increase in the rate of abandoned buildings where owners simply won't pay because it's not profitable for them to pay. They just let the building go. That's what's happened everywhere else the cost of continuing to maintain a building at a loss has occurred.

California is entering the 'death spiral' economically.

Newsom’s California: Latest Evidence of a Death Spiral - R Street Institute

SACRAMENTO — After Gov. Gavin Newsom signed Assembly Bill 1228, raising the minimum wage for fast-food workers and creating a council to regulate working conditions, the bill’s author issued a typical highfalutin statement. “We did not just raise the minimum wage to $20 an hour,” said...

www.rstreet.org

California's Fiscal Death Spiral: Is D.C. Watching? - Reason Foundation

In a Washington Post op-ed on Monday, Robert Samuelson offers a must-read, prescient warning that every American taxpayer should read—stop growing the federal government, or risk a California-style fiscal death spiral (emphasis mine): California’s budget debacle holds a lesson for … Continued

reason.org

California’s $125 Billion Death Spiral – California Globe

californiaglobe.com

And the idiots on the left wonder why normal people call california a shithole

 

[Lionfish]

I would bet big money is moving out fast.

 

[archives]

As California businesses and residents leave, in droves, more buildings stand empty. The loss of tax revenue is hurting government--duh! So, the government's solution is to penalize building owners for not having tenants by instituting a "vacancy fee."

Los Angeles neighborhood considers vacancy fee as empty homes, storefronts strain housing market

At the center of the proposal is the rising cost of living.

www.yahoo.com

No doubt, the result of this will be an increase in the rate of abandoned buildings where owners simply won't pay because it's not profitable for them to pay. They just let the building go. That's what's happened everywhere else the cost of continuing to maintain a building at a loss has occurred.

California is entering the 'death spiral' economically.

Newsom’s California: Latest Evidence of a Death Spiral - R Street Institute

SACRAMENTO — After Gov. Gavin Newsom signed Assembly Bill 1228, raising the minimum wage for fast-food workers and creating a council to regulate working conditions, the bill’s author issued a typical highfalutin statement. “We did not just raise the minimum wage to $20 an hour,” said...

www.rstreet.org

California's Fiscal Death Spiral: Is D.C. Watching? - Reason Foundation

In a Washington Post op-ed on Monday, Robert Samuelson offers a must-read, prescient warning that every American taxpayer should read—stop growing the federal government, or risk a California-style fiscal death spiral (emphasis mine): California’s budget debacle holds a lesson for … Continued

reason.org

California’s $125 Billion Death Spiral – California Globe

californiaglobe.com

No, one village in California “is preparing to consider a proposal to explore charging a vacancy fee,” not the State of California

Is everything coming out of MAGA framed incorrectly?

 

[Diogenes]

I would bet big money is moving out fast.

Is big money moving out of California fast?

---

Yes, significant high-net-worth individuals, taxable income, and some corporate headquarters have been leaving California, with an acceleration tied to high taxes, costs, and the proposed 2026 billionaire wealth tax (Prop 40). It is not a total collapse of the state’s economy or a complete emptying-out of Silicon Valley, but the outflow of “big money” is real, measurable, and has fiscal consequences.

High-net-worth and income migration​

• IRS and related analyses show persistent net losses of high-earning households and adjusted gross income (AGI). Earlier data (through ~2022) documented tens of thousands of net high-earner ($200k+) household departures and multi-billion-dollar AGI outflows in peak years. More recent county-level figures continue the pattern: Los Angeles County alone saw a net loss of ~17,500 tax filers taking nearly $1.9 billion in income; other major California counties (Orange, San Diego, etc.) also posted large net taxpayer losses.
• Broader millionaire migration data indicate California lost on the order of ~100,000 millionaires since ~2018 (while Florida gained more). High-income outmigration rose notably post-pandemic and after prior tax increases; it has moderated somewhat in some later years but remains a net loss.
• The proposed one-time 5% wealth tax on California residents worth $1B+ (as of Jan. 1, 2026) has prompted high-profile moves or preparations by figures including Sergey Brin (Nevada), Larry Page (Florida), Peter Thiel, and others. Advisers report helping multiple billionaires relocate. Critics argue even the proposal has already driven out substantial wealth (hundreds of billions in some estimates of affected assets). Supporters and some analysts counter that talent networks, especially in tech, will keep many in place and that a pure one-time tax is less disruptive than ongoing rates.

California’s progressive tax structure amplifies the impact: the top 1% (and especially higher) supply a very large share of personal income tax revenue (often 40%+ in strong years). Departures plus capital-gains volatility contribute to budget swings—from large surpluses earlier in the decade to multi-tens-of-billions deficits more recently.

Corporate and business activity​

Notable headquarters or major operations shifts out of California in recent years include Tesla, SpaceX/X, Oracle, Chevron, Public Storage, John Paul Mitchell Systems, and others, frequently to Texas (and sometimes Florida, Arizona, or Nevada). Texas has been a primary destination for a large share of these moves. Analyses from CBRE and others show California metros continuing to post net HQ losses while Texas metros (Dallas-Fort Worth, Austin) gain.

Not every company leaves, and California still hosts the largest number of S&P 500 headquarters of any state. Many firms retain significant operations, R&D, or manufacturing even after HQ moves. In-state reshuffling (e.g., coastal to inland counties) and new company formation also occur. The “exodus” narrative is sometimes overstated relative to the state’s overall economic scale, but the directional trend for headquarters and high-cost businesses is clear.

Broader population and context​

California has run net domestic migration losses for over two decades. Recent Department of Finance estimates put net domestic out-migration around 200k+ in recent years (e.g., ~216,000 in the year ending mid-2025 in one release), partially offset by international inflows. Overall population has been roughly flat to slightly declining or growing only modestly depending on the exact period and immigration levels. Out-movers often cite housing costs, taxes, and regulations; many improve their financial position after leaving.

Destinations for both people and capital are disproportionately lower-tax or no-income-tax states: Texas, Florida, Nevada, Arizona, and others.

Bottom line​

Big money is moving out at a meaningful pace—high earners and taxable income have been leaving for years, corporate HQs have shifted, and the 2026 wealth-tax proposal has intensified the signal for the ultra-wealthy. California remains an economic powerhouse with unmatched tech/talent density in many sectors, so the outflow is selective rather than total. The fiscal risk is real because of heavy reliance on a small number of high earners; continued or accelerated departures would pressure budgets further. Whether Prop 40 ultimately passes will influence the next chapter, but the preemptive movement of people and capital is already underway.

California's Big Money Exodus | Shared Grok Conversation

Is big money moving out of California fast?

grok.com

 

[Hawkeye10]

Driving down asset values has massive ramifications for the bank.....which are already highly leveraged.

 

[Hawkeye10]

As I watch Seattle retail in the core selling for 20% of what it was worth pre Plandemic in bankruptcy sales.......

 

[T. A. Gardner]

Driving down asset values has massive ramifications for the bank.....which are already highly leveraged.