SOUTH LAKE TAHOE, Calif. – The South Lake Tahoe City Council has a big agenda for its 9 a.m. meeting on Tuesday, September 9, starting with proclamations for Suicide Prevention Month and Recovery Month, and Constitution Week.
Council will hear an update on the Vacation Home Rental (VHR) ordinance, which was amended in June after Measure T was deemed unconstitutional in March 2025. An El Dorado County judge invalidated the whole measure that banned VHRS in neighborhoods due to a discriminatory exception for permanent residents. Since the city began accepting applications on June 25, 1,029 have been received, 639 during the preferred period, which was open to previous (pre-Measure T) permit holders. 111 permits have been issued to date.
- Total applications received: 1,029
- Applications received during the preferred applicant period: 639
- Applications reviewed: 702
- Applications awaiting additional information: 25
- Applications at “deemed complete” stage: 123
- Total applications rejected: 373
- – Not eligible for preferred applicant period: 245
- – Not eligible for permit: 149
- ….3 or more upheld citations: 39
- ….Outstanding fines: 48
- ….Multifamily, or attached condo, not having a permit as of 9/1/16: 53
- ….Buffered out: 65
- Issued permits: 111
City Council may want to consider amendments to the VHR ordinance to treat all non-residential areas similarly to the Tourist Core Area Plan, which has less stringent regulations, including no buffer, no requirement for a local property manager, and higher occupancy limits. Many VHR management companies and homeowners have complained about the current 150-foot buffer between permitted homes. This buffer is much smaller than other areas, including El Dorado County (500 feet), Santa Rosa (1,000 feet), Humboldt County (600 feet), Redding (600 feet), and San Luis Obispo (1,500 feet). Areas that have a smaller buffer include Alpine County (100 feet), Pacific Grove (55 feet), and Paso Robles (100 feet).
Council will hear the updates on the permitting process, code enforcement issues, and see if they could implement a minimum age of 25 to rent a VHR, as many jurisdictions do.
Also on the agenda:
In November 2022, South Lake Tahoe voters approved Measure G, a ballot initiative that replaced the Community Benefit Fee with the Cannabis Business and Professions Tax.
The cannabis tax adopted by voters was set at the same rate as the Community Benefit Fee outlined in development agreements at the time:
– 6% of gross receipts on retail, distribution, and manufacturing
– $20 per square foot of canopy for cultivation
Currently, the City collects approximately $900,000 annually in cannabis tax revenue
from four licensed businesses. Up to half of the collected amount is distributed to nonprofits that serve the community, whose projects contribute to mitigating the potential impacts of the cannabis industry in the city, and which help promote and address the priorities articulated in the City Strategic Plan. Those being awarded the grants from last year’s revenue will be voted on during Tuesday’s meeting.
In addition to the six percent cannabis tax, businesses are responsible for:
– Public Safety Mitigation Fee: $18,750 or $26,250 (if cultivation is involved)
– Public Safety License Fee: $1,190 annually per business
South Lake Tahoe’s 6% rate is higher than nearby jurisdictions but not the highest in
California: El Dorado County: 4% (authorized up to 10%), Placerville: 5%, Grass Valley: 4% (authorized up to 8%).
Any reduction to the cannabis retail tax rate will result in an estimated $150,000 loss per one percent decrease in revenue. Council will be weighing the potential
economic benefits for local businesses against the financial impact on community grants, infrastructure, and public services supported by these funds.
Mid-Town Area Plan Policy Review and Design Standards Discussion: The Council could vote on a motion providing direction to staff on the contents of the draft Mid-Town Area Plan on the following topics: (1) increasing the maximum density of residential development; (2) increasing the height limit of structures to 56 feet; (3) modifying parking requirements and establishing exceptions to minimum parking requirements; (4) confirming priorities, design standards, and changes to the permissible land use list for the six proposed districts; and (5) confirming the proposed implementation strategies.
Other agenda items:
Grow and Diversify the Economy- Strategic Plan Priority Update
Policy Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Development Commodities Owned by the City of South Lake Tahoe
Emergency Shelter and Warm Room Discussion
To view the full agenda, including all 21 consent agenda items, and instructions on viewing and participation in Spanish and English, visit https://www.cityofslt.gov/84/Watch-City-CouncilCommission-Meetings.