A message from the Keep Community First coalition

THE WRONG SOLUTION

Housing affordability is a serious concern for South Lake Tahoe, but the proposed vacancy tax will do nothing meaningful to address this challenge for our community. On many levels it will do far more harm than good. Read more.

LITTLE TO NO NEW HOME OFFERS



A vacancy tax will not increase housing supply as existing homeowners will not make their homes available for rental for six months, leaving them time to use their homes during the best times of the year. Likewise, renters typically don’t want to rent for just six months or a partial year and then have to move. In our opinion, the proponent’s claim that the Vacancy Tax will make more housing available is clearly incorrect.

THE CITY HAS NOT HAD A GOOD RESULT IN KEEPING PROMISES



For the homes subject to the potential tax, the measure does not guarantee that a future city council would use even a portion of the money raised, estimated at $34 million, to develop affordable housing. The city doesn’t have the best track record when it comes to spending money for the purposes promised to voters. It is often easier to make promises than to keep them.

THE TOTAL TAX DEMANDED WILL BE COLLECTED IS A DROP IN THE EMERAL FOR AFFORDABLE HOUSING

Even if the tax worked as proponents claim, little or no affordable housing would be built, especially not on time. The fact is that developing affordable housing at Lake Tahoe remains a complex and time-consuming process. Land costs are high and environmental requirements add significantly to both complexity and timeline. Even projects like Sugar Pine Village, which we actively supported and for which the State of California donated the land, took years to develop. Our locally based coalition and most South Tahoe residents support more affordable housing. The proponents of pie in the sky hope that simply throwing in money will change reality, but that is neither realistic nor true.

THE COSTS OF ADMINIZING AND DEFENDING A VACANCY TAX CAN BE ABSORBING THE MOST IF ALL FUNDING IS NOT COLLECTED

The ballot initiative highlights the costly bureaucracy the city would have to create to continually investigate who is subject to the tax and to enforce and collect the tax. The city will also face significant legal defense costs because, if the initiative is approved by voters, virtually everyone expects a lawsuit will be filed against the unfair, unjust and illegal tax. Administrative and legal defense costs will be paid by the city (and taxpayers) and are the first call on tax revenue. This will put a financial strain on the city and reduce “new” money for affordable housing.

THE TAX IS UNFAIR AS DESIGNED

The proposed vacancy tax is unfair to many members of our community. It treats all second/vacation homes the same, whether it is a small apartment, a house that a middle-class family has scrimped and saved for years to afford, or a larger house that is periodically purchased by families. is used.

In essence, the Vacancy Tax is a tax without representation.

Families who own a second home in South Lake Tahoe appreciate their opportunity to be part of our community. They contribute to the financial well-being and sustainability of our city, our special neighborhoods, local businesses and ensure that many of our residents remain in work.

These are the main reasons why our coalition actively opposes the proposed vacancy tax.

Keep the community first

Steve Teshara, Tahoe Chamber; South Tahoe Restaurant Association

Duane Wallace, South Tahoe Chamber

Sharon Kerrigan, South Tahoe Association of Realtors

Jerry Bindel, South Lake Tahoe Lodging Association

Joby Cefalu, Tahoe Keys Homeowners Association