In a significant legal ruling, El Dorado County Superior Court Judge Gary S. Slossberg has invalidated Measure T. This 2018 voter-approved initiative aimed to regulate vacation home rentals (VHRs) in South Lake Tahoe’s residential areas.

Background on Measure T

Measure T was passed by a narrow margin in November 2018. It sought to phase out VHRs in residential zones by the end of 2021. However, it allowed VHRs in commercial zones and the Tourist Core Area. It also permitted permanent residents to rent their properties short-term for up to 30 days annually.

Legal Challenge and Court Ruling

The South Lake Tahoe Property Owners Group challenged Measure T. They argued that it violated property rights and unfairly favored local residents. The court agreed, ruling that the 30-day rental exception was unconstitutional. It found that the exception violated the dormant Commerce Clause by giving an advantage to in-state residents over out-of-state property owners. Moreover, the court ruled that this provision was critical to Measure T’s intent. Removing it would alter the measure too much, leading to the invalidation of the entire ordinance.

Implications of the Ruling

With Measure T overturned, the old regulatory framework for VHRs in residential areas is now back in place. Property owners can once again apply for VHR permits in these zones. As a result, there may be an increase in short-term rentals. This change could affect housing availability, local businesses, and the overall character of the community.

Potential Next Steps

City officials are reviewing the court’s decision to decide whether to file an appeal. They have 60 days from the ruling to make a choice. This window gives them time to consider the decision’s broader impact and any changes needed to local short-term rental regulations.

Conclusion

The overturning of Measure T marks a significant change in South Lake Tahoe’s approach to regulating vacation home rentals. As the city navigates the fallout, stakeholders—such as residents, property owners, and local businesses—must stay updated on potential regulatory changes and their effects on the community.

For the latest updates on this ongoing situation, continue to follow local news outlets and official city communications. My 4 News, SF Chronicle, City of South Lake Tahoe.