Rich Californians flee to border town amid billionaire tax fears

Incline Village, located on the Nevada side of Lake Tahoe, has become a hotspot for ultra-wealthy Californians looking to escape the proposed billionaire tax in their home state. The influx of Silicon Valley billionaires, such as Sergey Brin from Google, Steve Jurvetson who invests in SpaceX, and Naveen Rao from Unconventional AI, has been notable in the area.

Luxury real estate broker Cole Mizak mentioned that the primary market in Incline Village consists of Californians seeking tax refuge in Nevada and individuals looking to purchase second homes. The interest from high-net-worth individuals has been on the rise, with an increasing number of luxury properties in the $10-20 million price range being sold. Mizak noted a significant uptick in sales compared to the previous year, attributing it to the proposed taxes in California and Washington.

Notable personalities like Steve Jurvetson and Naveen Rao have made the move to Incline Village, citing the natural beauty and clean environment as major draws. Rao, who relocated from Palo Alto to a $20 million mansion in the area, expressed his appreciation for the serene surroundings of the village.

The real estate market in Incline Village and Crystal Bay has seen a surge in activity, with multi-million dollar properties being snapped up by tech elites and investors. Larry Ellison, the co-founder of Oracle, has also made significant investments in the area, including the purchase of the Hyatt resort for $345 million.

The proposed “2026 Billionaire Tax Act” in California, which aims to impose a one-time tax on the net worth of billionaires, has led to a sense of urgency among the wealthy to secure properties in Nevada. The reopening of the historic Cal Neva resort, once frequented by celebrities like Frank Sinatra and Marilyn Monroe, adds to the allure of the area as a luxury destination.

With plans to redevelop the Cal Neva resort into the Lake Tahoe Proper Resort and Casino, Realberry and Proper Hospitality have secured a substantial financing package for the project. The move is seen as a strategic opportunity to tap into the underserved luxury market in the region.

Incline Village has quickly gained a reputation as the “Hamptons of San Francisco,” attracting high-profile individuals and entrepreneurs seeking a retreat from the tax burdens of California. The scenic beauty, coupled with the potential for investment and development, makes it a desirable destination for those looking to escape the proposed taxes and enjoy a luxurious lifestyle on the shores of Lake Tahoe.