Portland Studies Vacancy Tax for FY27 Budget

In June 2025, Portland City Councilor Sameer Kanal added a note to the FY26 city budget requesting a study of a possible tax or fee on vacant residential and commercial spaces. Council President Jamie Dunphy and Councilor Candace Avalos joined in support. A late-March Portland Business Journal story on the proposal generated substantial public attention. Dunphy has cited public safety concerns associated with vacant spaces and the domino effect of vacancies producing further closures.

For Portland-area commercial property owners, the study is the early signal that a vacancy tax framework comparable to Baltimore's, San Francisco's, or Portland Maine's may be on the horizon. Owners should be tracking the study's progress and the FY27 budget conversation that will follow.

Key Takeaways

• Portland City Councilor Sameer Kanal added note to FY26 budget requesting study of tax or fee on vacant residential and commercial spaces (June 2025).
• Council President Jamie Dunphy and Councilor Candace Avalos joined in support; late-March Portland Business Journal story generated substantial public attention.
• Dunphy cited public safety concerns associated with vacant spaces and domino effect of vacancies producing further closures.
• For Portland-area commercial property owners: early signal that vacancy tax framework comparable to Baltimore's, San Francisco's, or Portland Maine's may be on horizon.
• Owners should track study's progress and FY27 budget conversation that will follow.

Sources

• Willamette Week, April 22, 2026.