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]

Vacancy Tax FAQ | South Lake Tahoe

A vacancy tax in South Lake Tahoe could raise millions of dollars for affordable housing, road repair, and public transit. See answers to Frequently Asked Questions.

www.tahoevacancytax.com

VPT Vacant Property Tax

VPT Vacant Property Tax

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

If you would like to dispute your Vacant Home Tax Notice of Assessment, please submit a Notice of Complaint. If required to do so, you may submit additional documentation, file an appeal of any complaint decision, and respond to an audit through the same portal. Submit Complaint/Appeal or...

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.