California voters consider controversial vacation homes tax in iconic Lake Tahoe area

SOUTH LAKE TAHOE, Calif. -- Owners of picnic homes successful Northern California's South Lake Tahoe could look a important taxation summation if voters successful nan upland edifice municipality o.k. a measurement connected Tuesday’s ballot that pits affordable housing against backstage spot rights.

South Lake Tahoe, which sits connected nan shores of nan iconic alpine lake, has astir 7,000 vacant homes — 44% of nan city’s estimated lodging units — according to nan 2022 American Community Survey. Measure N would levy a level $3,000 tax connected homes that are vacant 182 days wrong a almanac year.

The taxation would summation to $6,000 for each consequent twelvemonth nan location remains quiet for half nan year.

The municipality is the latest crossed nan United States pinch a increasing statement astir nan effect of picnic properties. Critics opportunity vacant 2nd homes person worsened nan nation’s lodging situation by contributing to a shortage of affordable rental properties, particularly successful pricey edifice places for illustration South Lake Tahoe.

Supporters of nan measurement opportunity they want to promote homeowners to rent to workers aliases salary into a money for housing, roads and proscription projects. They opportunity nan metropolis is shedding families arsenic businesses struggle to prosecute unit successful a region pinch small onshore disposable for lodging development.

Kelly Bessem useful astatine slightest 50 hours a week astatine aggregate jobs arsenic a hydrology and onshore guidance section intelligence and a snowboard instructor. She's presently sleeping successful her car to bargain a location successful Markleeville, which is simply a 40-minute thrust to South Lake Tahoe.

“I’ve done each nan things I’m expected to, but it’s still to nan constituent wherever I conscionable compression by,” Bessem said.

Nancy Dunn, a homeowner who has lived part-time successful South Lake Tahoe since 2018, opposes nan measurement arsenic unfair and un-American.

“This is my home, and I want to beryllium capable to travel backmost to it erstwhile I want to, and travel and spell arsenic I feel,” Dunn said arsenic she stocked her location pinch firewood earlier this month. “The American measurement is to person nan correct to ain property, and to do pinch it arsenic you please.”

The California Association of Realtors and nan National Association of Realtors person contributed a mixed $1 cardinal to conclusion nan measurement successful a municipality pinch only 12,000 registered voters.

While still uncommon successful nan U.S., much places are considering an quiet homes aliases vacant homes taxation to reside workforce lodging shortages by tapping underused homes to grow nan semipermanent rental market.

In Hawaii, nan Honolulu City Council is trying to walk an quiet homes tax, its third effort since 2018, while nan Colorado Association of Ski Towns is seeking authorities allowing cities and counties to inquire voters to o.k. vacant homes taxes.

Margaret Bowes, nan Colorado group's executive director, said resort towns person fewer options successful wherever they tin build. The deficiency of lodging “has reached a situation level" affecting basal services and commerce "from skis edifice companies to local, mini businesses,” she said.

Perhaps nan champion known illustration is Vancouver, Canada, which successful 2017 imposed a 1% taxation connected an quiet home’s assessed taxable value. The taxation is now 3% and nan metropolis says it has generated $142 cardinal for affordable lodging projects.

In California, San Francisco and Berkeley approved taxes connected vacant properties successful 2022.

Vacancy taxes tin activity to a constricted grade successful larger cities, but an quiet homes taxation could make a immense quality successful smaller towns for illustration South Lake Tahoe, said Shane Phillips, who manages nan Randall Lewis Housing Initiative astatine nan University of California, Los Angeles.

He did not cognize capable astir nan projected taxation to measurement in, but mostly supports vacancy taxes connected picnic homes successful regions wherever lodging is short. Taxes tin beryllium utilized to discourage harmful behavior, he said, specified arsenic taxes connected cigarettes.

“And I deliberation there's a akin statement to beryllium made here, that group consuming aggregate homes and not surviving successful them successful communities for illustration South Lake Tahoe ... it's really doing harm to different people," Phillips said.

Measure N has roiled nan mini community, which pinch astir 21,000 year-round residents is nan astir populous metropolis ringing Lake Tahoe and a celebrated play destination. It is 188 miles (300 kilometers) northeast of San Francisco.

The metropolis has a median family income of $68,000, little than nan $95,000 median successful California. The median income value of a location was $750,000 successful September — up from $427,000 5 years ago, according to Redfin.

Modeled connected Berkeley's empty homes tax, nan metropolis projects that nan projected taxation will raise up to $8 million successful its first twelvemonth and up to $20 cardinal a twelvemonth afterwards.

Amelia Richmond, co-founder of Locals for Affordable Housing, nan group that collected nan signatures to get nan rumor connected nan ballot, said it is an opportunity to guarantee South Lake Tahoe does not spell nan measurement of different upland towns pinch moreover higher vacancy rates.

Property owners would self-report each year, though archiving whitethorn beryllium required. There are exceptions to nan occupancy requirement, specified arsenic homes undergoing renovation.

To debar nan tax, owners of picnic homes could waste their property, lease to a tenant year-round, aliases rent to seasonal travelers aliases workers. They can't database their homes arsenic short-term rentals aft nan metropolis voted to curtail rentals of less than 30 days, citing sound and nan lodging shortage.

Opponents opportunity galore of them scrimped and saved for humble 2nd homes and they shouldn’t beryllium punished for nan region’s deficiency of affordable housing. They're besides upset because arsenic part-time residents, they cannot ballot connected nan measure.

Tom Fields, 85, splits his clip betwixt a three-bedroom location that he describes arsenic thing typical different than its location connected Lake Tahoe and a spot successful cardinal Oregon.

“This is crazy and I don’t moreover cognize if it’s constitutional,” he said. "When you acquisition nan onshore and they commencement taking distant rights, that’s erstwhile group get upset.”

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Har reported from San Francisco.