Vacant and Vacancy Tax Spreading?

[ultrarunner]

Vacant parcel taxes sometimes called vacancy tax is real and spreading.

$6,000 is a typical surcharge slapped on in addition to whatever property tax is due.

The triggers vary depending on how long the parcel is vacant or not occupied in the calendar year.

South Lake Tahoe is hoping to join the list having declared a housing emergency… either live in your cabin or have it rented at least 6 months out of 12 months otherwise pay an extra $6k Vacancy Levy.

A few years back many of these jurisdictions banned short term rentals such as by the week or month or even several months.

To enforce the property owner is required to submit annual declaration attesting to occupants and length of stay and subject to audit.

Some jurisdictions have taken it to include vacant land such as a building lot bought with future plans to build… these vacant parcels must now pay an extra 6k per year in addition to property tax just to hold the property.

I can’t believe this is legal on so many fronts but it is fact.

I manage a small parking lot that is leased to a car dealer for 1250 per month… the city claims it appears under utilized and sent a 6k invoice giving me a time frame to respond… no matter the rental is registered and done with a city business license and tax on rent paid.

Tahoe which has a lot of vacation cabins is in turmoil because few can meet the 6 months of 12 occupancy…

Canada also imposes this and Washington DC has similar so it’s not just a SF Bay Area thing.

 

[ultrarunner]

Yes on Measure N - South Lake Tahoe

Measure N will raise millions of dollars for affordable housing, road repair, and public transit in South Lake Tahoe. Vote "Yes" on Measure N

www.tahoevacancytax.com

Vacant Property Tax (VPT)

On November 6, 2018, Oakland voters approved Measure W, the Oakland Vacant Property Tax (“VPT”). The VPT Act establishes an annual tax of $3,000 to $6,000 on vacant property.

www.oaklandca.gov

https://berkeleyca.gov/sites/default/files/documents/Measure%20M%20-%20November%208%2C%202022%20Election.pdf

City of Sacramento considering vacancy tax to spur development of empty parcels

The tax would punish land owners who have undeveloped land with no construction or building permit applications in process.

www.cbsnews.com

Which U.S. Cities Have a ‘Vacancy Tax’?

These so-called empty-home taxes are being considered in several spots on the West Coast

www.mansionglobal.com

 

[ultrarunner]

Canada has had it too.

Vacant Home Tax

Toronto’s Vacant Home Tax (VHT) requires homeowners to declare their property as vacant or occupied each year. This initiative encourages property owners to rent or sell unused homes to increase housing supply, with taxes on vacant properties supporting affordable housing programs.

www.toronto.ca

 

[grsthegreat]

Holy crap. Just when i thought Calif couldnt get any worse, they find a way. My sister has a little summer cabin in so cal. I hope she doesnt get hit with this.

 

[ultrarunner]

I don’t even see how it’s legal…

So many things come to mind but the bottom line is use it or lose it in a tax lien sale.

The old song about the cost of providing services would not seem to apply… how many ambulance rides or classroom seats does a vacation home generate?

I am afraid just how quick the tables can turn.

Lots of folks with building lots putting on the market because of the tax… people are not buying because they don’t want to be stuck and having a lot is no guarantee the owner can get a building permit and getting one often takes years.

The right to own property has never been under assault as it is today… and it’s all regulatory.

Even if a vacation owner spent every weekend at the cabin the 104 days is woefully short of 6 months occupancy.

 

[Jstpssng]

They are talking about it here. The local newspaper is constantly running articles about housing shortages, and short term rentals have made it onto the "evil" list. Tack on renters rights, rate control, and the recent optional rent payment during Covid and I don't know why anybody would want to be a landlord.

 

[bcp]

Next will be a bedroom vacancy tax.



Bruce

 

[5030]

They are talking about it here. The local newspaper is constantly running articles about housing shortages, and short term rentals have made it onto the "evil" list. Tack on renters rights, rate control, and the recent optional rent payment during Covid and I don't know why anybody would want to be a landlord.

It's not easy at times, believe me. I'm just blessed to have good renters.

Vacant property tax to me sounds like a thinly disguised way to fill the depleting local government coffers and nothing more and I'm sure glad we don't have anything like that here.

I own quite a bit of 'vacant' land both here and in Northern Michigan that we use for recreational and hunting property and I certainly don't want any taxing entity to try to 'milk' me for even more taxes. Here in Michigan, my vacant land is for growing crops and is under the Michigan PA151 which essentially reduces the property taxes to almost nil. The up north property is taxed as vacant land but the tax rate is much less than land with a dwelling on it.

Glad I don't live in California or anywhere where the local taxing entity feels empowered to extract even more taxes for whatever reason.

Hard enough getting by today as it is.

 

[ultrarunner]

Apartment blocks are stuck unless going condo or coop but the small mom and pops are getting out.

Too much risk and responsibility all the while the owner’s right get chipped away.

 

[ultrarunner]

Next will be a bedroom vacancy tax.



Bruce

Isn’t that what happened in the movie Dr Zhivago?

Homes allocated by the state?

Soon there will be no where to go…

Some of the least stressed people I know are on Section 8… it’s like being retired and having all your needs met…

No worries about the roof over your head, filing tax returns, food on the table, health insurance, discounted or free utilities, cell phones, computers, property insurance, school tuition, etc.

 

[ultrarunner]

It's not easy at times, believe me. I'm just blessed to have good renters.

Vacant property tax to me sounds like a thinly disguised way to fill the depleting local government coffers and nothing more and I'm sure glad we don't have anything like that here.

I own quite a bit of 'vacant' land both here and in Northern Michigan that we use for recreational and hunting property and I certainly don't want any taxing entity to try to 'milk' me for even more taxes. Here in Michigan, my vacant land is for growing crops and is under the Michigan PA151 which essentially reduces the property taxes to almost nil. The up north property is taxed as vacant land but the tax rate is much less than land with a dwelling on it.

Glad I don't live in California or anywhere where the local taxing entity feels empowered to extract even more taxes for whatever reason.

Hard enough getting by today as it is.

Dad had friends that ran cattle… can’t do that anymore because the pasture is now included in vast wetland buffers… but he is suppose to control vegetation fuel load to mitigate fire risk.

 

[plowhog]

Lots of folks with building lots putting on the market because of the tax… people are not buying because they don’t want to be stuck and having a lot is no guarantee the owner can get a building permit and getting one often takes years.

That is an unbelievably nasty government trick.

For those who do not know, the Tahoe Regional Planning Agency has many hurdles in place for anyone who owns a lot in the Lake Tahoe area and wants to build a cabin. Takes years and lots of $$ just to .. maybe .. obtain a permit.

Then a different agency comes along, and slaps a $6k/yr tax for not having yet built a cabin on your lot. What idiot would now purchase any bare lot under those conditions? If this stands I could see the entire market for bare lots being destroyed.

 

[ultrarunner]

Lots of variations but by any measure a taking.

Currently there are homes in Tahoe without insurance and with 180 day occupancy the choice is move in or sell?

Why anyone would want to become a housing provider especially with today’s squatter laws and insurance issues is unfathomable to me.

 

[dfkrug]

For those who do not know, the Tahoe Regional Planning Agency has many hurdles in place for anyone who owns a lot in the Lake Tahoe area and wants to build a cabin. Takes years and lots of $$ just to .. maybe .. obtain a permit.

Lotsa folks in the Bay Area own vacation houses in the Tahoe area, or other parts of the Sierras. It is laughable that they call them "cabins", since they are usually 3bed/2bath conventional houses with often more square feet of area than houses they own here. Many owners would rather not rent them out, even if that could be lucrative. Being a landlord can work for some folks if they have good tenants, but many of us have been landlords before, and would never do it again.

Any property tax is a "taking" by the govt, but we have learned to live with them. Here in CA, the govt still can't figure out if it is legal to own a firearm magazine that can hold more than 10 rounds.

Back in the 90s, it took me about 2y to get my building permit on my 19 acres in Santa Clara County. It takes longer now, so vacant land sales are slow.

 

[ultrarunner]

Yep… vacant land is difficult to value especially if development may not be possible even if proper zoning and utilities in place.

Now adding 6k penalty for vacant status is piling on.

It wasn’t too long ago when those not developing were praised… go figure.

The cabin of my grandparents is 800 square feet circa 1960 and was on septic for 3 years before mandatory forced hook up.

Water, sewage, garbage cannot be opted out… it is required even if not used.

Trying to add a half bath proved impossible so it stays as it is.

The bears are protected and several times during pandemic entered and made a mess… but owners face stiff penalties if bears are harassed.

It’s no joke trying to get insurance let alone rental property insurance at Tahoe…

Many owners shutter for the winter as access is limited and dealing with repairs in winter is problematic.

 

[ultrarunner]

Taxation without representation?

By definition a vacation cabin/home is not a residence so the owners are excluding from participating in voting issues and in a place like Tahoe it means major decisions are effectively made by a few.

 

[Jstpssng]

Next will be a bedroom vacancy tax.



Bruce

A few years ago I read about some study which calculated how many empty bedrooms there are in this country. Why would anybody need to know that? I can just imagine somebody telling 86 YO mother that she has to give people a place to live, as she is still in the house my paternal grandfather built in 1927, and raised 6 kids during the Depression.

 

[plowhog]

Observations made here could easily fit in your other thread as well.

The circumstances suck, no question. The big picture is there is such a fondness for public policy giveaways that the thirst for new revenue sources will not be quenched. Vacant lot tax today, who knows what tomorrow? The trends are all going toward even more tax and regulation in the name of "justice" for others. More money collected and more money spent.

When I was young, people who worked hard and became successful were admired and looked up to. A "self made millionaire" was considered an exceptional accomplishment. Others aspired to try to achieve that and if they only got halfway they were lauded for accomplishments.

Now, people mask and hide their accomplishments or success. A message has been spread that successful people must have cheated along the way. Which ignores the hard work and risk taken in order to get ahead. And if that is not bad enough, just being successful is now branded as a group that is "failing to pay their fair share." Of course the term "fair share" is never defined-- because even if you get close, the goalpost is then moved. It's pathetic. But it is also an established treadmill of how to win votes and raise money.

In a "regular" society, you might have a chance to get momentum for an initiative to roll back or block the idea of vacant parcel taxes. But even if it is fundamentally right to make such a change, the voters will never approve it. They have been conditioned that someone that has more than they do must be punished in order for "social justice" to prevail. No tears will be shed for those who can afford a second home-- no matter if the issue is right or wrong.

A cynical view, for sure. And views I wish I did not hold.

 

[ultrarunner]

Maybe it’s all part of fundamentally changing America?

Private property is a cornerstone of America just as freedom of religion is another cornerstone.

Losing property for the benefit of others is eminent domain and fair value must be paid…

I don’t understand how a person can be compelled to go into the rental property business on property they own for their pursuit of happiness?

Even with exemptions the waiver requires the granting of waiver by petitioning.

the closest cabin neighbor is a firefighter and rescue team member… I bet there are tests when he is away from his home more than 6 months in a year…

When an ordinance says days per year I guess no need to sleep there… right?

If there was ever a case for the Supreme Court I think this is it.

 

[wmfamily]

You get what you vote for...