South Lake Tahoe Rejects $3,000 Tax Proposal On Homes That Were Vacant For 182 Days

On Nov. 5, residents of South Lake Tahoe, California, were thinking about more than just the presidential election.

Voters there rejected Measure N, a proposal that would have imposed a $3,000 tax on homes left vacant for 182 days or more each year, with the tax rising to $6,000 in future years, according to Realtor.com.

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Supporters of Measure N argued that vacant second homes contribute to the city's housing shortage by reducing the supply of affordable rental units. They also noted that the measure could have raised millions for housing projects, road repairs and public transit improvements.

However, critics argued that the government shouldn't dictate how many days an owner can spend or not spend, at their property.

As of Nov. 8, nearly 74% of voters voted no on the measure.

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"Measure N was a horribly flawed and divisive proposal that would have done nothing to address housing challenges in our community and everything to further acrimony in our community," Sheron Kerrigan, executive vice president of the South Tahoe Association of Realtors and cochair of the Stop the South Tahoe Vacancy Tax campaign, said in a statement. "The voters saw it for what it was and rejected it soundly."

Kerrigan told Realtor.com that people are relieved they won't have to contend with privacy intrusions or the complex bureaucracy that would have been required to enforce such a tax on all residential properties in the city.

"Second-home owners are telling us that they are grateful they won't be forced to sell or rent their cabins in South Lake Tahoe," she said.

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Many vacation-home owners couldn't vote in the election because South Lake Tahoe isn't their primary residence.

"Thank you to all the voters who voted against it and for being a voice for those of us who own second homes and were not allowed to vote on the issue," Teresa Barnwell posted on Facebook.

Measure N supporter Nick Speal told SF Gate that thousands of residents still want stronger efforts to address Lake Tahoe's housing crisis.

The median rent in South Lake Tahoe is $2,600 per month, $857 more than the median rent across the 50 largest U.S. metro areas. South Lake Tahoe renters pay an additional $10,284 annually compared to the average renter.

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The median home listing price in South Lake Tahoe is $632,500, $133,000 above the national median. Meanwhile, the city's median household income is $68,000, falling $27,000 short of California's median income.

According to the 2022 American Community Survey, South Lake Tahoe has about 7,000 vacant homes, representing 44% of the city's housing stock.

"We've said from Day 1 that the issues raised in this campaign are real, but the proposed solution was never going to work," Steve Teshara, director of government relations for the Tahoe Chamber of Commerce and cochair of Stop the South Tahoe Vacancy Tax, said in a statement.

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