South Lake Tahoe Voters Block Measure to Tax Vacant Homes

Homeowners in South Lake Tahoe, California, voted against a proposal to tax vacant homes that would have imposed taxes of up to $6,000 per year for houses left unoccupied for more than six months. The measure, known as Measure N, failed by over 1,800 votes out of about 8,300 cast. If approved, homeowners would have had to pay a vacancy tax of $3,000 for the first year and $6,000 annually for homes empty for more than 182 days in a year. Additionally, self-reporting occupancy status and penalties for noncompliance were part of the proposed measure. Exemptions were made for properties occupied for at least six months, construction projects, summer cabins without insulation, and homes affected by emergencies. The measure aimed to gain between $4 million and $8 million in the first year and up to $20 million annually in subsequent years. Critics argued that the measure invaded privacy and represented a significant tax increase. The proposal also faced opposition due to concerns about its impact on renters and homeowners facing unexpected circumstances. Measure N aims to encourage vacant homeowners to utilize their properties more frequently, thereby boosting their contribution to the local economy through regular use or renting to a local resident. The success of similar regulations in various locations such as Utah, Hawaii, Vancouver, and Kyoto, Japan, indicates that vacancy taxes can effectively address housing availability shortages. For example, the Empty Homes program in Vancouver, Canada, introduced in 2017, resulted in a significant decrease in vacancies by 54 percent within the first five years of implementation, as reported by the city. This demonstrates the potential impact of such measures in addressing housing challenges.

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