South Lake Tahoe residents to vote on controversial vacancy tax in November
South Lake Tahoe residents are set to vote on a controversial measure in the November election.
Measure N would create a tax for homes that are unoccupied for more than half of the year.
According to the 2022 U.S. census, 44% of homes in South Lake Tahoe sit vacant the majority of the year.
A home will be considered vacant when it's unoccupied for more than 183 days out of the year. Under Measure N, the homeowner would have to pay a $3,000 tax for the first year.
The tax would increase to $6,000 or more in the following years.
The measure specifies that the tax revenue can only be used for housing, roads, transit and administrative and legal costs.
It also states the occupancy does not need to be consecutive.
If passed, the new tax would go into effect in 2026.
Who opposes Measure N?
The Tahoe Chamber, the South Lake Tahoe Lodging Association and others are among those opposing this measure.
Steve Teshara, co-chair of the group Stop the Tahoe Vacancy Tax said South Lake Tahoe has been a second home community for years and owners shouldn’t be forced to rent their homes.
“It's bad on many levels for the second homeowners and it's bad for the community because we rely on those people to help support our businesses,” said Teshara.
He argues some owners could be inclined to sell their homes due to this tax.
“The fees pile up,” said Teshara. “A lot of the people here, you know, are people that we know, just regular folks, are not wealthy people.”
He noted that the majority of those who would have to pay the tax don’t get to vote on it since they’re likely registered to vote at their primary residence.
“It feels very much like the classic taxation without representation,” said Teshara.
Who supports Measure N?
Amelia Richmond, with the group Yes on Measure N said this tax is necessary to address the housing crisis South Lake Tahoe is facing.
“It's really taking a toll on folks in our community to be able to find and afford housing,” said Richmond.
She said this is causing families and young people to leave the area directly impacting local businesses.
“It's becoming increasingly hard for employees to find housing and for businesses to find employees,” said Richmond.
Richmond said the goal is not to drive second homeowners away but to encourage more full-time occupancy that can boost the local economy.
“We still believe they're a valuable part of our community,” said Richmond. “There's just a cost to having almost half of all homes sitting unoccupied for the majority of the year.”
For more information about the November election, including key issues and races on the ballot, check out the KCRA 3 Voter Guide.