South Lake Tahoe, which sits on the shores of the iconic alpine lake, has about 7,000 vacant homes — 44% of the city’s estimated housing units — according to the 2022 American Community Survey. Measure N would levy a flat $3,000 tax on homes that are vacant 182 days within a calendar year.
The tax would increase to $6,000 for every subsequent year the home remains empty for half the year.
The town is the latest across the United States with a growing debate about the impact of vacation properties. Critics say vacant second homes have worsened the nation’s housing crisis by contributing to a shortage of affordable rental properties, especially in pricey resort places like South Lake Tahoe.
Supporters of the measure say they want to encourage homeowners to rent to workers or pay into a fund for housing, roads and transportation projects.
Nancy Dunn, a homeowner who has lived part-time in South Lake Tahoe since 2018, opposes the measure as unfair and un-American.
“This is my home, and I want to be able to come back to it when I want to, and come and go as I feel,” Dunn said as she stocked her house with firewood earlier this month. “The American way is to have the right to own property, and to do with it as you please.”
The California Association of Realtors and the National Association of Realtors have contributed a combined $1 million to defeat the measure in a town with only 12,000 registered voters.
While still rare in the U.S., more places are considering an empty homes or vacant homes tax to address workforce housing shortages by tapping underused homes to expand the long-term rental market.
To avoid the tax, owners of vacation homes could sell their property, lease to a tenant year-round, or rent to seasonal travelers or workers. They can't list their homes as short-term rentals after the city voted to curtail rentals of fewer than 30 days, citing noise and the housing shortage.
Opponents say many of them scrimped and saved for modest second homes and they shouldn’t be punished for the region’s lack of affordable housing. They're also upset because as part-time residents, they cannot vote on the measure.
Tom Fields, 85, splits his time between a three-bedroom house that he describes as nothing special other than its location on Lake Tahoe and a place in central Oregon.
“This is crazy and I don’t even know if it’s constitutional,” he said. "When you purchase the land and they start taking away rights, that’s when people get upset.”
