Residents of South Lake Tahoe will vote on a controversial Measure N during the upcoming November election. This proposal targets properties that have been unoccupied for six months or more, a situation that many homeowners are facing as they use their Tahoe properties for vacation homes, investments, or Airbnb rentals. If the measure passes, it could provoke significant backlash from these owners.
According to KCRA3, the 2022 U.S. Census revealed that 44% of homes in South Lake Tahoe sit vacant for much of the year. If a home is unoccupied for more than 183 days in a year, it is classified as “vacant.”
Measure N stipulates that if approved, homeowners will be required to pay a vacant property tax of $3,000 in the first year. This amount will increase in subsequent years, potentially reaching $6,000 or more.
The funds collected from this tax are earmarked for housing, road improvements, transportation, and administrative and legal costs. If passed, the new tax would take effect in 2026.
Reactions to Measure N have emerged from both proponents and opponents. Opponents primarily consist of local business organizations, such as The Tahoe Chamber and the South Lake Tahoe Lodging Association, who have banded together under the banner “Stop the Tahoe Vacancy Tax.”
Steve Teshara, co-chair of the Stop the Tahoe Vacancy Tax organization, argues that South Lake Tahoe has long been a choice for people looking for vacation or second homes, and homeowners shouldn’t feel pressured to rent out their properties just to minimize taxes. He emphasizes that this move could negatively impact second homeowners and, by extension, the local community, given that these homeowners are crucial consumers for many small businesses.
Teshara raises concerns about fairness, noting that many of those affected by Measure N do not live in Tahoe year-round and may be registered to vote elsewhere, calling into question the equity of the voting process.
On the other side, supporters of Measure N have formed a group called “Yes on Measure N.” Amelia Richmond, a member of this organization, strongly advocates for the measure as a necessary step to tackle the housing crisis in South Lake Tahoe.
Richmond highlights that vacant homes are contributing to difficulties in purchasing homes within the community and are forcing local families and young people to leave Tahoe. This issue also impacts local businesses, which struggle to retain employees due to a lack of housing.
She asserts that the goal of Measure N is not to drive away second homeowners but rather to encourage more families to settle in the area, thereby boosting the local economy.
