Keep Community First group tells city council "no new taxes"

SOUTH LAKE TAHOE, Calif. - The South Lake Tahoe City Council Chambers were in full Tuesday night, all there in support of an item not on the agenda. Keep Community First is a group of business owners and community members who oppose possible upcoming taxes on the ballot in South Lake Tahoe - a vacancy tax and a tourist occupancy tax (TOT) increase, as well as sharing their concerns about talk on a rise in the minimum wage.

The city council previously voted 2-3 for a vacancy tax to be put on the ballot, so the efforts to add one are by a citizen's initiative.

Steve Teshara of the Tahoe Chamber, kicked off the public comments. He stated his concerns about the verbiage on the vacancy tax, which includes that the funds can be used for fighting litigation about the tax.

A South Lake Tahoe Vacancy Tax is an effort to tax homes in the city that are not occupied for at least six months of the year. The first year a home is vacant, the tax would be $3,000, and then all subsequent years are $6,000 each. All funds raised through the special tax would go to housing, roads, costs for implementing the program, public transit and its infrastructure, and roadwork. At this time, signatures have not been turned in to add the measure to the ballot (10 percent of registered voters are required).

"A vacancy tax will kill our town," said former mayor and city councilmember Tom Davis.

Many of the speakers said second homeowners support the community through property taxes, using local labor for home needs, purchases at local stores, dining in local restaurants, and in other ways. They said they pay for public services and roads, but don't use them all the time.

Erick Asbury, owner of South Lake Tahoe Electric, said the second homeowners are a "diamond in the rough," and appreciated all of their support of local businesses like his.

Speakers were concerned about taxing a group of people who cannot vote or have a voice (since a second homeowner has another residence that is their 'primary' home).

Raising the TOT tax is not getting the support that Measure P did in 2016. That extra tax on vacation home rentals and motel stays was going only to recreation in South Lake Tahoe. The lodging association and Boys & Girls Club helped get it passed as they saw the benefits to locals and visitors, people young and old. That made the TOT on lodging stays in the redevelopment area at 14 percent, and 12 percent in the rest of the city.

Since tourism to Lake Tahoe is facing challenges, many feel any more taxation will keep more away, or move them into areas with less tax. Any proposed increases in TOT will put South Lake Tahoe near the top in the country.

Jan McCarthy, the owner of two lodging properties, said any increases would be harmful to businesses not already selling out. She said her properties have not been sold out for 18 months.

Even though not on a ballot, speakers at the meeting during the public comment period also said a rise in the minimum wage to $23 would be the nails in the coffin of many businesses in the community. With minimum wage being what an employee earns as they start at entry-level, having a higher entry point to the workforce will be beyond what a business can handle. They would have to pass the extra cost onto the customers who are already having problems with increasing costs due to rising supply, utility, and taxes.

A rise in South Lake Tahoe's wage would also affect the neighboring state and communities around Lake Tahoe.

The comments on the rise in minimum wage were directed to Councilmember Scott Robbins who has been publicly supporting the increase.

"Small businesses are scared about any talk of minimum wage increase to $23," said Jerry Bindel.

Duance Wallace of the South Lake Tahoe Chamber said this is a community that pitches in together to help each other. He said the Keep Community First group was formed to vigorously oppose the taxes, but they will also vigorously help fix problems too. He emphasized that local business owners aren't rich, aren't multi-million dollar corporations, and can't absorb many more extra costs.

"We will help you solve problems," said Jerry. He is part of the lodging association that helped get Measure P passed, but they aren't supporting the TOT increase this time around.

Teshara said the Keep Community First group will be adding a website soon, as well as ways for the public to get involved.