SOUTH LAKE TAHOE, Calif. – The Court of Appeal on Tuesday issued an opinion that substantially upholds Measure T, a vacation home rental restricting measure that was narrowly passed by South Lake Tahoe voters in 2018.

Following passage of the Measure, that prohibits vacation home rentals in residential areas outside of the designated tourist core, the South Lake Tahoe Property Owners Group filed a lawsuit challenging the measure.

“Today, the Court of Appeal issued an opinion that substantially upholds Measure T. Most importantly, the ban on VHRs in residential neighborhoods has been upheld,” said a press release from the city.

The court sent one issue back to the trial court regarding qualified VHRs, which allows residents of South Lake Tahoe to get a permit to rent their homes for up to 30 days per year even if they are outside of the tourist core. The court remanded this issue to determine whether this provision unlawfully discriminates against non-residents.

The South Lake Tahoe Property Owners Group claimed that part of the measure violated the Dormant Commerce Clause which prohibits entities from making laws that disturb interstate commerce.

“We agree that the complaint did not expressly inform the City that the dormant Commerce Clause was a source of plaintiff’s claims for declaratory and injunctive relief. But the complaint’s allegation that Measure T unconstitutionally discriminated against out-of-state interests in favor of permanent city residents alleges a classic violation of the dormant Commerce Clause,” the opinion stated.

The City said it is reviewing the opinion and potential next steps. A link to the full opinion can be viewed at C093603.PDF (ca.gov)