California voters consider controversial vacation homes tax in iconic Lake Tahoe area
Voters in the scenic mountain town of South Lake Tahoe in Northern California are considering a tax on vacation homes
SOUTH LAKE TAHOE, Calif. — Owners of vacation homes in Northern California's South Lake Tahoe could face a significant tax increase if voters in the mountain resort town approve a measure on Tuesday’s ballot that pits affordable housing against private property rights.
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. They say the city is shedding families as businesses struggle to hire staff in a region with little land available for housing development.
Kelly Bessem works at least 50 hours a week, supplementing her main job as a field scientist in hydrology with work as a snowboard instructor to make ends meet. She's currently sleeping in her car to buy a house in Markleeville, which is a 40-minute drive to South Lake Tahoe.
“I’ve done all the things I’m supposed to, but it’s still to the point where I just squeeze
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