Push for South Lake Tahoe Vacancy Tax Sparks Controversy

Locals For Affordable Housing , a South Lake Tahoe organization, is making a push to lock in 1,500 signatures by April 10. If they meet their quota of signatures, we will see the initiative on the ballot in November.

The bill would put in place a vacancy tax on homes that are unoccupied for half of the year or more. Owners would pay a $3,000 fine for the first year, and then it would increase to $6,000 over the next year if the house remains unoccupied.

Affordable housing for locals and service workers is a hot topic around the entire Tahoe Basin. With an influx of rental properties, vacation homes, and Airbnb’s, it’s becoming nearly impossible to find housing on a middle class wage.

I worked around Tahoe for 10 years during winters and summers, and I mostly lived in Reno, commuting back and forth every day. I did spend a few summers living and working in Tahoe City, but the only realistic option I had for housing was a trailer on my boss’ property.

No running water or Wi-Fi was better than paying 70% of my income to rent or living in a three bedroom house with six roommates. It’s a difficult and sensitive topic where a catch-all solution will probably displease either the local population or the vacation population that drives much of Tahoe’s economy.

The bill would encourage homeowners to spend more time in the area and in turn, could create a more stable economy for the tourism and service industries. Instead of seeing huge nose dives in business, locals are hoping then bill could even out the stark contrast of busy season vs down season.

Amelia Richmond, co-founder of Locals for Affordable Housing, told ABC 10, “We just can't sustain an economy with half of homes empty where people just aren't here on a regular basis.”

The bill is gaining support through local workers, business owners, and other full-time residents, but everyone is not on board with the idea.

There are some exceptions spelled out in the bill which includes non-continuous occupation of the residence, current remodeling or construction, renting to a local worker, or people who are in serious or long-term medical care.

There’s also a slew of considerations from concerned Reddit users.

Vacancy tax
by u/altruistic-bet-9 in tahoe

Some people think that the wealthy homeowners will simply just eat the fine, and other part-time residents who contribute to the economy will feel the full force of the burden. Not every vacation home is owned by billionaires who are there one week out of the year.

It’s common for retirees who have worked their whole life for their well needed retirement to own simple cabins that are occupied for four to five months out of the year during the summer and mild months, and a $3,000 fine could easily drive them out.

There’s concern that this bill could further alienate the two sides and drive out semi-permanent, economy supporting families and people who call Tahoe home for part of the year.

A few people also pointed out the intricacies of proving who is actually present in their home and for how long. It could use up precious resources and funding to just determine the length of time spent at these homes.

Others think that the money and resources could be used in a better way to actually create more housing and support for full-time residents.

Another Reddit user pointed out that the intended consequences for these part-time homeowners could create different consequences that could be worse.

For example, if there’s a plethora of part-time residents who sell their vacation home because of the tax, it could quite possibly create a market for more ultra-rich or corporate real estate companies to eat up many properties to create more short-term rentals.

Because really, who’s going to buy a 20 million dollar plus mansion in South Lake Tahoe and move in full-time during the current economic struggles in the area? I’d guess not many.

Here’s another take from a homeowner in South Lake Tahoe.

Comment
by u/altruistic-bet-9 from discussion
in tahoe

There may not be a whole lot that full-time residents, part-time residents, renters, and homeowners can agree on, but I think one thing that is for sure is that something needs to be done.

When I worked in the tourism industry around Tahoe, I could feel the tension rising year to year between the work force and vacationers. I think the problems are real, but it’s become an us vs them mentality where there seems to be less and less compromise and understanding from both sides.

If I learned one thing from it, it’s that being a weekender is okay. Being a part-time resident is fine. Being a little bit clueless is workable. Being a local is really cool. I know for a fact I've looked like an absolute idiot when I'm travelling.

But being an asshole is where I drew the line. Local or not, if you put out respect to the people and the area, then you would get respect back.