(InEDC) BY Cris Alarcon Published: September 18, 2023
In South Lake Tahoe, a citizens group called “Locals for Affordable Housing” is advocating for a tax on vacation homes that remain unoccupied for most of the year. The group plans to introduce a voter initiative in the November 2024 ballot, taking inspiration from Berkeley’s vacancy tax. Under the proposed tax, owners of homes vacant for more than six months a year would be required to pay $3,000 for the first year and $6,000 annually thereafter.
President and co-founder of Locals for Affordable Housing, Amelia Richmond, highlighted the worsening affordable housing crisis in the community. The lack of affordable housing has pushed numerous full-time and seasonal workers to leave the area, making it challenging for businesses to retain their employees. Richmond emphasized how lower-wage workers can no longer afford housing, leading to a significant loss of employees and families, ultimately impacting local businesses.
The concern voiced by Locals for Affordable Housing resonates with a Tahoe Prosperity Center survey conducted in March 2022, which revealed that 73% of residents identified the absence of worker housing options as the greatest threat to their quality of life, surpassing concerns about traffic and wildfires.
Richmond’s group is presently engaging in outreach and fundraising efforts to place the measure on the ballot. The formal ballot language has not been submitted yet. If approved, the group will commence collecting signatures to qualify for the November 2024 ballot.
Vacancy taxes have gained traction in several cities in the Bay Area, such as Berkeley, Oakland, and San Francisco. These taxes aim to generate funds for affordable housing and encourage property owners to convert their unused buildings and lots into homes. Although a vacancy tax was discussed by a Sacramento City Council committee in March, the full council has yet to address the matter.
In Santa Cruz, however, a vacancy tax was rejected by voters in November 2021, with opponents criticizing it as an imperfect and punitive measure.
Mike Glover, president and CEO of The Lake Tahoe South Shore Chamber of Commerce (Tahoe Chamber), expressed support for constructing more affordable housing in the region and revealed previous endorsements of tax increases proposed by the city. However, in an April letter to the city of South Lake Tahoe, Glover stated that the Tahoe Chamber does not back a vacancy tax. Glover argued that continuously increasing the local tax burden becomes counterproductive and that the threshold has already been exceeded.
Nonetheless, advocates for the South Lake Tahoe vacancy tax argue that the large number of vacant homes is unsustainable. They believe that renting these homes to local workers, even for a few months a year, would alleviate the housing crisis in the area. Richmond pointed out that 45% of the city’s homes are vacant for at least six months a year, a percentage that has grown over time. She highlighted the negative economic impact, such as homeowners not contributing to local businesses through grocery shopping and their children not attending local schools.
Richmond clarified that homeowners who prefer to keep their second homes but refuse to rent to locals should expect an annual fee to compensate for the economic cost of lacking housing and their absence from the community full-time.
