The Vacancy Tax is Heading to the Ballot in November

A Vacancy Tax is Heading to the Ballot in Lake Tahoe.  The vacancy tax, a measure gaining traction in many communities, is now being considered in South Lake Tahoe, CA.  Many fell it is a strategy to combat the region’s housing crisis and was proposed by one of our city council members. This tax targets homeowners who leave their properties vacant for extended periods.  If it passes it could encourage them to rent out these homes or sell them to permanent residents.

The Proponents of the Vacancy Tax Think it will solve the housing crisis

South Lake Tahoe, known for its stunning natural beauty and vibrant tourist economy, faces a severe housing shortage.  This demand is a common problem now in resort communities especially after Covid and the work from home movement.  Many homes remain unoccupied for much of the year as the majority are now second homes. Implementing a vacancy tax could help mitigate these issues.

The Opponents of the Tax Think it Penalizes Property Owners

Will this vacancy tax get voted in on the ballot in November? The revenue generated from this tax could also be reinvested into affordable housing projects or community services, further alleviating the housing crisis. Critics argue that a vacancy tax could have unintended consequences, such as discouraging investment in the area or unfairly penalizing property owners who use their homes seasonally. However, supporters believe that the benefits outweigh the potential downsides. They point to other cities, like Vancouver and San Francisco, where similar measures have been implemented with positive results.

For South Lake Tahoe, a balanced approach will be essential.

Engaging with the community and stakeholders will be crucial in shaping a policy that addresses the unique needs of South Lake Tahoe.  The only people that can vote on this issue are registered voters only in the city limits.  If the vacancy tax vote passes than it only affects homes in the city limits.  Many second homeowners feel that are being unfairly targeted especially after Measure T passing years ago.  Measure T bans short term vacation rentals in the city and only one by 54 votes.

Also, I feel that our heart and south has always been tourism in South Lake Tahoe.  A Vacancy Tax is Heading to the Ballot in Lake Tahoe and if it wins it punishes many of those people.  This town is building affordable housing paid for by the taxpayer.  It isn’t enough but its a start and hopefully it continues as of course everyone needs a place to call home.