San Diego rental tax proposal fails amid allegations of paid protesters

SAN DIEGO — A San Diego City Council committee narrowly rejected a proposal to tax second homes and short-term rentals, voting 3-2 against a measure intended to generate revenue and return housing units to the local market.

The proposal, introduced by Councilmember Sean Elo-Rivera, drew dozens of protesters in light blue shirts to the Council Chambers. Investigations into the turnout revealed that many participants were not local residents.

Amada Valle, who traveled from Los Angeles, said she received a stipend, travel expenses, and hotel accommodations to attend the hearing. Valle stated she was part of a group called Urbano Strategies.

An Instagram post recruiting for the event offered $25 per hour for a "paid civic engagement opportunity." Another group in attendance, Save Our Services LA, is reportedly linked to Airbnb.

Airbnb did not respond to requests for comment regarding the recruitment.

Elo-Rivera criticized the use of paid demonstrators, calling the recruitment of individuals for "fake community engagement" an insult to the democratic process.

The collapse of the proposed tax in San Diego serves as a textbook example of modern "astroturfing"—the strategic manufacturing of grassroots support to influence legislative outcomes. This policy defeat marks a decisive victory for the short-term rental industry, led by incumbents like Airbnb, which increasingly view localized tax mandates and regulatory hurdles as existential threats to their business models.

The incident highlights a sophisticated corporate strategy: the use of political consulting firms, such as Urbano Strategies, to mobilize low-income residents for high-visibility lobbying. By subsidizing transportation and attendance fees, these entities project a facade of organized public opposition to exert pressure on lawmakers. The transactional nature of this activism was laid bare by one participant’s admission that the payment "wasn't worth it," signaling that the demonstration was driven by financial incentive rather than genuine civic grievance.

Beyond the immediate legislative outcome, this episode raises systemic concerns regarding the transparency and equity of the local policy-making process. When economic interests can effectively purchase a presence at public hearings, the voices of local residents—those most directly impacted by the housing affordability crisis—risk being marginalized. For San Diego, the failure of this tax proposal results in the loss of a significant potential revenue stream and leaves the city struggling to mitigate the conversion of residential housing stock into high-turnover tourism assets.

The affordable housing crisis in major California hubs, including San Diego, hits home for many Vietnamese-American families. While this narrative may not center exclusively on our community, the tactic of using outside groups to sway local policy is a trend worth watching. Immigrant populations—often navigating language barriers or the financial pressures of the nail salon and service industries—can be targeted by consulting firms for "paid civic engagement" opportunities. Too often, community members are recruited to advocate for political interests they may not fully grasp, effectively serving as the face of policies that directly impact the very neighborhoods where they live and work.