Lake Valley Properties opposed to South Lake Tahoe Vacancy Tax ballot initiative
Last week a proposed local ballot initiative, specific to properties within the South Lake Tahoe city limits, achieved enough signatures to go to a vote in November: South Lake Tahoe Vacancy Tax to go on the ballot in November | South Lake Tahoe – SouthTahoeNow.com. Properties without proof of occupancy (long term renter or owner) for at least half of the year, would be subject to a tax of $3,000 in the first year, then $6,000 annually in ensuing years.
Lake Valley Properties is strongly opposed to this initiative for a number of reasons:
- The proposed initiative is a basic invasion of property rights, especially for those that own property in South Lake Tahoe and cannot vote here.
- The tax will impact values for all single family properties within the city limits. In 2021, short term rental rights were removed for properties in any neighborhood zoned as residential (Measure T). Now with the newly proposed Vacancy Tax, a property that already lost its use as a vacation rental would also trigger the tax if not used as prescribed by the ballot initiative – severely impacting the use and value of private property for prospective buyers.
- There is no quantified solution for use of tax proceeds – signatures were gathered under the guise of affordable housing, but the funds would be subject to future city council discretion for an array of city expenses, including roads.
- Like many communities, the South Lake Tahoe area saw property sale and rent values increase dramatically after COVID-19. We have seen an influx of remote workers that impacts both home sales and rent levels – suddenly blaming the higher prices on second homeowners does not seem logical or productive for improving the cost of living for those working in the local economy.
- The city has taken steps in recent years to build new affordable housing. 248 units are currently under construction on Tata Lane – Sugar Pine Village. A market rate development is planned to break ground behind the Crossings shopping center. Lake Tahoe Community College has broken ground for 100 units of student housing. We need to see what effect these projects have on local housing needs, along with the typical economic cycles that impact property sales prices and rent levels – we are currently seeing prices and rent levels soften due to economic conditions beyond local control.
- Please don’t hesitate to contact us if you have questions, or would like to get involved: matt@lakevalleyproperties.com – (530) 544-7010.
Matt Lucksinger
Realtor
Lake Valley Properties Inc
CA #01994459
NV #S.0201227
(Cell) 831-747-7734
(Office) 530-544-7010
