Get the Facts
Learn More about Measure N
Measure N incentivizes full-time occupancy in our community by adding an annual tax on housing that sits empty for the majority of the year.
Proceeds from Measure N are dedicated funding for local housing, road repair, and transit.
Vote for Vibrant,
not Vacant
Measure N encourages homes to be occupied, preventing South Lake Tahoe from becoming another vacationland for only the rich and famous like Aspen or Vail. Occupied housing means more support of local businesses and participation in our community.
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Funds housing for locals
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Funds urgent road repairs
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Does not tax local residents or businesses
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Lowers rent by increasing supply
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Proceeds can only be spent on housing, roads, and transit.
Watch the Info Session
In July, we hosted an info session to share background information with the community.
Frequently Asked Questions
How does Measure N protect our community?
With nearly half of all houses (44%) unoccupied most of the year, median home prices in South Lake Tahoe have more than doubled since 2013. Approximately half of Tahoe’s workers now live outside the region, and of those who do live here, nearly two-thirds don’t earn enough to afford the living expenses of a typical family. Tahoe Prosperity Center estimated that 3,290 housing units are needed by 2026 to house the workforce in the South Shore area.
Lack of affordable housing has led to a shrinking population, a shortage of workers, and a 36% drop in school enrollment since 2000. The number of homes sitting vacant for most of the year has increased by 56% since 2000. We are losing families and longtime residents each day and gaining more unoccupied vacation homes.
Measure N incentivizes vacant homeowners to use their properties more often and contribute regularly to the local economy or rent to a local resident so we don’t follow in the steps of communities in Colorado, Utah, or North Lake Tahoe, where 70% of homes now sit vacant.
The City’s independent analysis of Measure N estimated the policy would help recover up to 1,500 full-time households, boosting local retail spending by nearly $27 Million per year, while simultaneously generating $20 million each year dedicated for housing, roads and transit.
How will Measure N help the housing crisis?
Measure N proceeds are dedicated only for local housing, roads, and transit, and the policy itself discourages future conversion of local housing to more vacation homes. Measure N implements an annual fee on housing units that sit unoccupied for the majority of the year to shift incentives toward full-time occupancy. Academic studies have shown that increased supply stabilizes housing costs. Measure N simultaneously shifts incentives to unlock existing inventory for residents, while generating funds that can be used to bring back first-time home buyer assistance programs, convert run-down motels to housing, and develop public/private partnerships to build housing our workforce can afford.
How will Measure N be enforced?
Property owners complete a short Declaration of Occupancy online or by mail indicating if the property was occupied the majority of the year. No complicated tracking or backup is required, just a simple form and a signature. If declared occupied or exempt, NO fee is owed. Enforcement will be handled through spot audits and penalties for fraudulent declarations. In their independent analysis, the City identified 10 ways of identifying fraudulent filings, based on learnings from other cities with similar policies.
What’s the fee structure of Measure N? And why is it a flat rate?
Modeled after similar policies in other communities, owners of houses that sit unoccupied for the majority of the year pay $3,000 for the first year the property sits unoccupied and $6,000 for the following years it remains unoccupied.
The rate is a flat fee because it is unlawful under California’s Prop 13 to structure it as a percentage of property value.
Are there exemptions?
Definitely. No one whose property is occupied for more than half the year --whether by their family, renters, or houseguests -- will owe a dime. Additionally, Measure N has exemptions for uninsulated summer cabins, properties being renovated, under construction, or impacted by emergencies or natural disasters, wildland firefighters, active-duty military, emergency service workers, and anyone in medical treatment or care facilities. More exemptions can easily be added by City Council with a two-thirds vote.
What about residents who spend winters in warmer places?
Measure N is focused on second homes and blighted properties that are vacant for the majority of the year - there is no tax for homeowners who occupy their homes most of the year.
If local residents wish to spend December through April somewhere warmer, that would still mean being home in Tahoe for more than 210 days - well within the margin, even after accounting for some additional travel later in the year. Residents can also rent their house out while gone or invite house guests to occupy the home.
Measure T (passed by City voters in 2018) allows locals to short-term rent their houses for up to 30 days of the year under the Q-VHR program, and allows unlimited long-term (>30 days) rentals. Seasonal professionals and travel nurses working in Tahoe for just a few months at a time can help fill the gap for second homeowners looking to round out occupancy.
Have vacancy taxes been successful in other communities?
Yes, cities across the country and around the world have passed vacancy taxes with successful results. Desirable destinations with vacancy tax policies include all of Utah; Hawaii; Vancouver, British Columbia; Kyoto, Japan; areas of Austria; all of Ireland, and all of France.
Passed in 2017, Vancouver’s Empty Homes saw a 54% decrease in vacant properties, and more than $142 million of net revenues have been allocated to support affordable housing initiatives in Vancouver since the tax launched. Following success in Vancouver, 14 other municipalities in British Columbia adopted vacancy taxes.
Berkley, California saw a 7% reduction (~$200/mo) in median rents leading up to their vacancy tax taking effect. Empty units that came on to the market increased supply which lowered prices.
The Journal of Public Economics studied the impact of taxing vacancy on housing markets, with evidence from France. The study reported, "Results suggest that the [French Vacancy Tax] accounted for a 13% decrease in vacancy rates between 1997 and 2001.”
What are the annual administrative costs for Measure N?
The City’s independent analysis estimated that the cost of administration would be 3% of the total revenue.
How would Measure N’s revenue be spent?
Measure N easily funds its own administration, estimated by the City to be 3% of projected revenue from the program. As a special tax, the estimated $20 Million in annual proceeds can ONLY be spent on local housing, roads, and transit.
Measure N annually raises millions for affordable housing, such as redeveloping old motels into new workforce housing, bringing back first-time home buyer assistance programs, and offering financial incentives to developers to build affordable housing for the “missing middle.”
Measure N also raises funds for road repair and transit, allowing the City to more than double the amount of annual paving and to fund expanded and reliable bus service. At the City’s current pace, it will otherwise take more than 100 years to fix the roads.
Measure N requires an Oversight Committee be established to advise City Council on allocation of funds and administration of the policy.
How does Measure N benefit local businesses?
The City’s independent analysis showed that Measure N would incentivize the conversion of 1,500 existing housing units to full-time occupancy, which would help reverse the City’s population loss. The recovery of these full-time households is projected to boost local retail sales by an estimated $27 million annually.
Full-time locals spend money every day, rather than only a few weekends per year. This means more steady revenue at shops and restaurants throughout the year, including in the shoulder seasons, as more locals can afford to live here.
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Additionally, by shifting incentives and raising funds for local housing, Measure N helps create more workforce housing so businesses can find and keep staff.
How does Measure N benefit our tourism economy?
By incentivizing more full-time occupancy and funding affordable housing development, Measure N benefits both our community and tourism economy. In order for visitors to enjoy morning coffee, go out for dinner, or rent a boat to explore Lake Tahoe, we need housing for the workers who staff those businesses. 89% of local employers reported that affordable housing is either *the* single most critical, or among the most critical problems in the 2019 South Shore Employer Survey.
Why don't we just build more housing instead?
The City needs new funding sources to build more housing. The City is currently maxing out all available federal and state grant funding to build the 248-unit Sugar Pine Village, which is not nearly enough to close the gap on the 3,290 housing units needed by the local workforce in 2026. We need additional revenue streams to solve the housing crisis.
Measure N would bring in an estimated $20 million per year for housing development, road repair, and improved transit. The addition of millions of dollars per year will allow the City to bring back first-time home buyer assistance programs, convert run-down motels to housing, and develop public/private partnerships to build deed-restricted housing our workforce can afford.
Still have questions?
Drop us a line at VibrantNotVacant@gmail.com
