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To tax or not to tax?: The question on vacancy

SOUTH LAKE TAHOE, Calif. – Vacancy tax are two words currently at the center of many discussions in the City of South Lake Tahoe. These two words have elicited much action from the community, from the current petition being passed around for signatures, to groups forming in opposition them. It’s stirred activity at City Council meetings, filling seats and spilling over into the hallways.

Both newer and more seasoned generations have offered their views as well as those in-between, full-time residents and part-time too. It’s caused supporters to brave one of the season’s heaviest winter storms on cross country skis to dispense vacancy tax petitions for signature, put together by Amelia Richmond and others at the Locals for Affordable Housing Committee.

Still, others like, Steve Imhoff, say if the tax passes, he’d contribute substantial resources to a mega legal fund to challenge what he describes an “Unconstitutional piece of garbage.”



In a concurrent article titled The Tribune explains: What’s with the vacancy tax?, the Tribune breaks down the initiative’s proposal. Here’s what people are saying about the circulating vacancy tax petition, both for and against.

A vacancy tax petition is circulating the City of South Lake Tahoe for signatures to get on November’s ballot. If passed, it would tax property owners for leaving their house vacant the majority of the year.
Hannah Pence / Tahoe Daily Tribune

A generational divide?

“There seems to be a generational divide,” a full-time resident named Lucas said at the Feb. 27 City Council meeting, “between those in support and of those against the vacancy tax and other measures meant to bolster affordable housing.”



The meeting saw many young community members providing comment in support while many older residents provided comment opposed. The culmination of comment spanned almost two hours at council on a subject Mayor Cody Bass reminded everyone is a citizen initiated ballot measure.

Certain individuals from the younger generation claimed housing has outpaced wages, leaving them with less buying power. Another, Sierra Riker, who moved to South Tahoe in 2021 said something like the Vacancy Tax is needed “to allow those of us who weren’t born before 1980 to just afford to live.”

“This situation has left us feeling desperate, and,” Lucas said, “doubtful about our futures.”

Older residents offered examples of what they went through to live in the ski town. Kenny Curtzwiler worked two jobs until around 50 years old, “And I still managed to get 100 days of skiing. It can be done, if you put your mind to it.”

Another began working when they were a teenager.

“It hits us, just the secondary homeowners who worked our lives to get our secondary home,” Bob Wachter said, mentioning his three degrees, multiple certifications and saving a lot of money to afford this dream.

Young individuals pointed to their masters degrees, certifications and skilled jobs as well, claiming they can still barely make ends meet. Kelly Bessen testified of moving nine times since coming back to Tahoe in 2019 and said, “If people have to move twice a year and are constantly living in fear of losing their housing and not being able to find something else, I’m wondering if that’s supposed to reflect a thriving community.”

A young resident by the name of Jack said, “I have always been taught that hard work pays off, but when I look around our community, some of hardest working people are really struggling to get their basic needs met, like housing,” the midtown resident continued, “The status quo simply is not working.”

Some voiced that they want to live in a diverse Tahoe, but if it continues to hollow out, Tahoe will not have a young population.

“If South Lake Tahoe can run like that and if people are comfortable with that,” one 23-year-old by name of Roderick Martin said, “Carry on, but otherwise something has to change.”

Carrie Goldsworthy spoke over Zoom to the individuals talking about working hard as if the young community isn’t, adding, “Times have changed. It is not as simple. It is not affordable anymore.”

Others, like Natalie Yanish, said it should not be about age and that it has always been a resort community, “It comes with a price and a cost.”

Over 3,000 units short?

Proponents organizing the vacancy tax petition say around 44% of all housing units in the City of South Lake Tahoe sit vacant for most of the year. They reference census data in 2022 that amounts to 7,150 empty homes. And from the 2019 South Shore Housing Needs Report, they cite 3,290 housing units are needed for the workforce.

They calculate if 20% of second homeowners open their houses up as a result of the tax, that will supply 1,460 housing units and generate $34 million each year.

However, Councilmember Tamara Wallace takes issue with how these numbers are represented. The councilmember, who helped put the South Shore Housing Needs Report together, says the 3,290 unit number not only includes the City of South Lake Tahoe, but Douglas County and unincorporated areas of El Dorado County as well, including Tahoma.

“The city,” Wallace says, “should not be responsible for providing housing for all the other jurisdictions.”

The study map from the South Shore Housing Needs report.
Provided

Taxation without representation

In his comment at council, Bob Wachter asked, “What about all these secondary homeowners who haven’t even heard about this?” He explains the only way he heard about it was through the Nextdoor app.

Councilmember Wallace, as well as many community members, believe the vacancy tax measure proposes taxation without representation, leaving second home owners without a vote on the matter if it does get on November’s ballot.

John Messina with the Lake Tahoe Taxpayers Association said, “I guess you’ve all forgotten about no taxation without representation and what the Boston Tea Party and what the American revolution was about, but you’re all sitting here talking about what I’d call communism. “

Councilmember Scott Robbins doesn’t feel the same, he told the Tribune, “It is the height of unbelievable privilege to say that second homeowners should get extra votes based on how many houses they own.”

He says in America, you don’t get extra votes for having extra money, “Those ideas went out with the revolution” and adds, “It’s one man, one vote, not one vote for every house you own.”

‘Build ourselves out’

The circulating vacancy tax petition has many scratching their heads, thinking about alternatives for affordable housing.

Ideas thrown around at the Council Meeting were task forces, tapping into abandoned and underused properties, grants and loans, 203(k) programs, accessory dwelling units, earmarking funds for homeowner down payment assistance, among other ideas.

The initiative left many pleading at the meeting to try alternatives first before the tax, “I would be more than happy, I would be thrilled to be a part of a task force to explore solutions in-lieu of a tax,” Holly Rickett, a second home owner volunteered.

When discussing Sugar Pine Village, the current affordable housing development under construction, Robbins said, “We need housing units by the thousands, not by the dozens.” The village will supply 248 units when completed.

Richmond points to vacant homes outpacing new construction and the Tahoe Regional Planning Agency’s development caps saying, “We can’t build ourselves out of this.”

While vacancy tax proponents say they aren’t opposed to alternative solutions, what Richmond says is a “yes, and approach to solving the housing crisis,” those often need funding and federal and state grants often have restrictions to them.

Councilmember Wallace concedes, South Lake Tahoe can’t build itself out of the housing crisis, but says, “The inherent unfairness of making someone do something with their property or paying a huge fine for it, when it is their property, is against everything I believe in and a lot of people believe in.”

To those who say the housing crisis needs a solution, but vacancy tax is not the way, Richmond asks, “Well what is the way to do it then? What is the way that actually addresses the scale of the problem and does so quickly? Because, we’re losing families everyday.”

She says “The idea that this as a free market can fix it, has this assumption that Tahoe is this closed free market, but,” she explains, “you have people earning much higher salaries in places like San Francisco, in the bay area, that come and pay higher prices here and then elect to keep those places vacant.” For this reason, she says vacancies need to be addressed as part of the housing crisis.

Councilmember Wallace says she sees economics at work in the community. She has observed the rental market changing, from individuals renting site unseen and units only being on the market for a day—sometimes hours—to prices coming down and units sitting for multiple months, “That tells me that the basic principles of economics are working, you have the laws of supply and demand.”

Community member Jerry Bindel reported on the current rental market at City Council. He discovered in speaking with local long-term rental agent Julie Lucksinger that rental vacancies are up this winter season when they are typically low, referencing two bedroom units for under $2,000. Lucksinger is also expecting a large turnover in the spring.

‘We can’t do nothing’

While providing their views, some community members sought to find a common ground. Nick Speal said, “We can’t do nothing, let’s agree on that.”

Some pleaded to just sign the petition whether for or against it with midtown resident, Jack saying, “Anybody who cares about democracy should sign the petition so that every community member has the opportunity to vote on vacancy tax when it comes up in November.” 

Organizers have 651 signatures heading into March. They will need 1,159 signatures from South Lake Tahoe registered voters by April 10 to get the Vacancy Tax placed on November’s ballot.


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