Commission majority determines VHR petition will cost $2 million in lost revenue

Mixed use and neighborhood commercial zoning in East Fork Township could be opened to vacation home rentals if a petition to ban the rentals in Lake Tahoe neighborhoods is successful.

Mixed use and neighborhood commercial zoning in East Fork Township could be opened to vacation home rentals if a petition to ban the rentals in Lake Tahoe neighborhoods is successful.

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Minden and Gardnerville require mixed-use commercial zoning instead of multi-family residential along Highway 395.

That and neighborhood commercial established several places on either end of the towns with zoning that could provide a new source of vacation home rentals should a petition drive be successful.

Last week Douglas County commissioners voted 3-2 that the petition will end up costing the county $2.1 million in permitting fees and transient occupancy taxes.

The effect on both the Tahoe Douglas and Lake Tahoe visitors authorities is estimated at $2.737 million, according to the county.

Both Walt Nowosad and Danny Tarkanian voted against the estimate, with Tarkanian arguing that data from South Lake Tahoe indicates that there wouldn’t be any effect on occupancy taxes as a result of the petition.

Organizers argue that the petition wouldn’t cost taxpayers anything.

The petition would prohibit vacation home rentals in residential neighborhood at Lake Tahoe, limiting it to a single location in Stateline.

However, there are reportedly 160 potential vacation rental units in East Fork Township, according to the county. Based on an analysis presented to the county, only 16 are estimated, but that doesn’t account for an increase that might result from a ban at the Lake. The 16 would generate $112,256 in transient occupancy taxes.

Additional information regarding the initiative petition can be found at douglascountynv.gov/vhrpetition

Under state law, the county is required to determine whether a petition will have a financial effect should it be approved by voters.