In a pivotal move, the South Lake Tahoe City Council is set to deliberate on adding a ballot measure for November 2024, proposing the city’s transition to a charter city and an additional two percent raise in the Tourist Accommodation Tax (TOT). The agenda includes a $107,500 proposal to hire the Lew Edwards Group for public polling on these potential changes, focusing on the TOT increase and incorporating a real estate transfer tax. Despite the estimated $3.25 million annual revenue from the TOT hike, concerns persist that it might diminish the city’s attractiveness as an overnight destination. In 2016, voters approved Measure P, raising the TOT to 10 percent, with 14 percent in the redevelopment area, funding projects like the recreation complex.
However, this time, lodging industry support is uncertain. The proposed ballot may also transform South Lake Tahoe into a charter city, a move championed by Mayor pro tem Cody Bass, aiming to introduce a real property transfer tax generating around $4 million annually.
The Ad Hoc Charter City Subcommittee has drafted a charter for public consideration, emphasizing the city’s intent to preserve local control within constitutional limits. If approved, the charter would mark departures in real property transfer tax authorization and construction project regulations from laws applicable to general law cities. The Council’s decision on Tuesday will determine the commencement of public outreach on the proposed charter.
The meeting Tuesday starts at 5:30 p.m. with a closed session at 5 p.m. The meeting is held in council chambers at the airport and can be viewed online. For the full agenda and viewing instructions, visit https://cityofslt.us/84/Watch-City-CouncilCommission-Meetings
OPINION: South Lake Tahoe becoming a charter city is not the route to take
Duane Wallace
The City Council agenda scheduled for Tuesday, November 21 at 5:30 p.m. will have a discussion and possible action deciding whether to move forward with a study of becoming a charter city.
The two Council members on the subcommittee have expressed their desire to go forward. Only two reasons were given for the change. Mr. Bass stated that it would give the City the ability to have a property transfer tax that could raise as much as the current city budget. Over $30 million annually could be additionally taken from our local economy if it is coupled with a vacancy tax that is also still being discussed. When a property of any kind is transferred/sold the mentioned amount the city could extract could be as much as six percent. Of course, that would raise the cost of housing and commercial property, making it more difficult to live and do business here. That six percent would most likely end up being financed by the buyer at the current interest rates for up to 30 years.
Mr. Robbins said he saw the opportunity for much-increased fines against those violating the Measure T VHR ordinance. Currently, the fines can be as much as $1,000 per offense. The fines could be outrageously higher, up to, as Mr. Robbins commented, $10,000 per offense. Since a new law under current general law cities like ours has recently been passed by the legislature, the fines can now be as much as $5,000 per offense, which effectively takes the reason to change off the table.
Those two reasons would, in our opinion, be very harsh on the real estate part of our economy and greatly damage housing in South Lake Tahoe. Just as Measure T had an effect on housing in the County and Nevada because it didn’t apply to them, this would further that problem and alter the investments in our city possibly moving them to Nevada or into Meyers and Tahoe Paradise or to the North Shore.
In addition, becoming a charter city allows for an elected (political) mayor. One has only to see the results of that form of city government with mostly larger cities in chaos. Political mayors are not required to have an educational background or any city management experience. Under our current form of city, a professional manager is the person who runs the day-to-day operations. Political mayors often fill their staffs with staff who are political appointments who often are not qualified for the positions.
It also would allow for high-salaried city council members. Those two options are not currently being promoted. However, the ability to change would be possible if we become a charter city.
Since the only reasons stated for making the change are to raise funds from and hurt property owners with fines, we object to the change even being studied.
Please either attend to state your opinion during public comment on the item, or write an e-mail to the council, publiccomment@cityofslt.us It would be very good if you can attend and or comment on Zoom (agenda and instructions here).
Note: This proposal would have to go on the ballot. The usual way to coerce voters into raising taxes is to couple the taxes and fees with emotionally appealing topics like snow removal affordable housing or transportation systems. While we support those goals, we do not believe the change in the type of city will benefit the public but rather hurt our economy, discourage investment in our commercial properties, cause lost jobs and make it harder to buy a home and put groceries on the table.
Further, such a tax grab would affect other entities with future bond issues such as LTUSD and LTCC and recreation and police and fire issues that usually are funded with property tax ballot measures.
Your ideas, thoughts and questions are welcome.
I hope to see you there.
– Duane Wallace, CEO, ACE
The South Tahoe Chamber of Commerce
