The cost of owning a vacation home in South Lake Tahoe could become even higher if residents approve a ballot measure that would impose a tax of up to $6,000 on homes left vacant for more than half a year.
The measure is called “South Lake Tahoe Vacancy Tax,” aimed at punishing homeowners who leave thousands of homes vacant in mountain resort towns; the tax penalties will be used for affordable housing, road repairs and public transportation. The measure is designed to incentivize homeowners to rent out their properties rather than leave them vacant.
Locals Support Affordable Housing, the nonprofit group leading the initiative, said it collected nearly 2,500 signatures to put the tax measure on the November ballot, more than the 1,159 signatures needed.
“Since January, we have connected with thousands of community members outside their local grocery stores and in neighborhoods across the city and received widespread support and gratitude that something is being done to address skyrocketing housing costs. ” Founder of the non-profit organization. “The housing crisis has reached breaking point, with local people being forced out of their communities due to a severe shortage of affordable housing.”
In South Lake Tahoe, Locals for Affordable Housing collected more than 2,000 signatures to put a vacancy tax measure on the November ballot. If approved, the city would impose a tax of $3,000 to $6,000 on homes that remain vacant for more than half a year.
(Affordable housing provided by locals)
South Lake Tahoe is the latest city in California to consider a vacancy tax to address the housing shortage. Oakland, San Francisco and Berkeley have approved similar initiatives; voters in Santa Cruz rejected one two years ago. Los Angeles considers vacancy tax Four years ago and no progress.
Amelia Richmond, who co-founded Locals for Affordable Housing with Speal, said the South Lake Tahoe tax proposal is modeled after the Berkeley initiative of. If approved, the city would impose a $3,000 tax on homes left vacant for more than six months in a year, with a $6,000 tax on repeat offenders each year thereafter. The law, which takes effect in 2026, would exempt properties under renovation, seasonal cabins, homeowners in senior care facilities, wildland firefighters and military-deployed residents.
In South Lake Tahoe, just over 40% of the housing units are used as vacation homes or rentals. There are 16,275 total units, 7,150 of which are vacant most of the year, according to the 2022 American Community Survey and city records.
Supporters say if 20% of those homes were sold or rented to local residents for six months or more, it would add about 1,430 homes, while a tax on the remaining vacant homes would generate more than $34 million a year in revenue. in affordable housing, road maintenance and basic services.
A 2022 survey from the Tahoe Center for Prosperity shows, A nonprofit that conducts economic and development research on the Lake Tahoe Basin found that the median home price tripled in nine years, from $345,000 in 2012 to $950,000 in 2021, far outpacing people in the area. bearing capacity.
According to the U.S. Census Bureau, South Lake Tahoe’s median household income is $67,686, lower than the state’s $91,905.
Researchers at the center noted in 2021 that the region saw declines in residents and enrollment throughout the year, as well as a smaller youth workforce. They linked these declines to the housing crisis.
But the proposed tax measure has created a rift among town residents, particularly second-home owners and young workers, who say a lack of housing options, low wages and high costs of living are driving them away from the area.
In an effort to block the measure, a group of residents, small business owners and real estate agents formed a group called Stop the South Tahoe vacancy tax.
“After all the promises made by the measure’s proponents, voters will be shocked that there is nothing in this proposal that would require the city to build a new set of affordable housing, or even require any improvements in housing affordability at all. Spend a Penny “We all want to solve South Lake Tahoe’s housing affordability problem, but this measure is not the answer and could make things worse. “
Alliance co-founder Steve Teshara said the construction of affordable housing in South Lake City is limited by development standards that determine where and how much can be built in the city.
Teshara said the 248 affordable housing projects currently under construction are only possible because executive order Gov. Gavin Newsom has opened up certain types of state land to affordable housing development.
Tesala believes city leaders are doing their best to provide housing.
“But when there’s not enough land to zone the property or there’s not enough density allowed in certain areas, simply throwing money at it doesn’t really solve the problem, and that’s our main concern,” he said.
He and others said the measure is a form of tax without representation because homeowners who don’t live in South Lake Tahoe won’t be allowed to vote on the measure in November. Opponents also question the city’s ability to enforce the new law.
Richmond said she is concerned that second home owners may try to use their South Lake Tahoe address to register to vote even though they do not live there full-time, which would violate election laws.
The divisions over the measure were evident as residents spoke at a three-hour City Council meeting in February.
Longtime resident Dan Brown told the city council, “40 percent of this town has always been and always will be owned by second home owners. “That’s what this town is for. [a long] time.
Dan May, another long-time resident, said he supported the initiative because it seemed fair.
“It gives homeowners a choice to live here and participate in our community or pay additional taxes to help support the community they love,” he said. “If they don’t agree, they have the ability to It’s sold to people who agree with those choices.”
Some speakers said the measure puts an unfair burden on them to address the region’s housing crisis. They urged city leaders to look for alternatives, such as loans and taking advantage of state programs to renovate abandoned buildings.
Christopher Rowe, a buyer for a large outdoor store who has lived in South Lake Tahoe for more than 30 years, said that while he understands both sides, he supports the measure.
“Tahoe Realty you [bought] 30 or 50 years ago, if the vacancy tax passed, which I hope it does, you would have spent more money to keep it as an empty house,” Rowe said. “But if you really care about South Lake Tahoe, you should donate a little bit of money because you have an empty house, and there’s no real way to deny that empty houses in South Lake Tahoe are hurting the community and causing minor damage.”
“When 40 percent of homes do this, it makes a difference,” he added.
Richmond said the measure is not an attempt to divide the town but to protect a mountain resort she believes is more livable than other mountain resorts like Aspen and Jackson Hole, Colorado, where residents and workers are being priced out.
“This has nothing to do with the relationship between the resident and the second home owner,” she said. “It’s about making it a community for all of us and making it sustainable and not following the trajectory of other resort towns.”
