SOUTH LAKE TAHOE, Calif. – Vacation home rentals in the city of South Lake Tahoe got a reprieve in El Dorado County Superior Court on Thursday when Judge Gary Slossberg struck down Measure T.
The divisive measure was narrowly passed by voters in 2018, which phased out vacation home rentals (VHRs) by the end of 2021. Provisions in the measure allowed full-time residents to rent their homes up to 30 days per year, and it was this portion of the measure that Judge Slossberg determined to be unconstitutional in violation of the Dormant Commerce Clause. He also determined it was part of Measure T and could not be severed from the rest of the measure.
Measure T only banned VHRs in residential neighborhoods, and they were still allowed in the tourist core and industrial areas of the city.
Shortly after the passing of Measure T, the South Lake Tahoe Property Owners Group was formed to challenge the constitutionality and has been fighting it since then. They stated it infringed upon a homeowner’s property rights and discriminated against the non-resident property owners. The group’s legal challenges took them to the Third Appellate District of the California Court of Appeals. That court upheld the City’s authority to ban VHRs due to the result of the 2018 election.
The appellate court then sent the case back to El Dorado County Superior Court.
“This is a huge opportunity for the Council to be real leaders to address the issues while allowing them back,” said South Lake Tahoe Mayor Tamara Wallace. “I’m reminded of the plan while former City Manager Frank Rush was here and would like the council to look at ways to protect the neighborhoods, housing, and have more a zoning way to look at things.”
Part of Rush’s ideas were to allow VHRs within 1,000 feet of navigatable waterways and ski resorts, and other adjustments.
“I am so happy we now have an opportunity to do it right,” added Wallace. “There are some good things we can tweak to make it better and liveable for both sides.”
Just as the voters decided the fate of VHRs in 2018, the City of South Lake Tahoe created an updated VHR ordinance with improved enforcement. Many of those who organized the efforts to get the ordinance approved said it was too late. With the overturning of Measure T, the South Tahoe Chamber of Commerce said they may ask the City Council to create a better enforcement process and make other adjustments to work better for all.
“We are happy locals can go back to work at hundreds of jobs like snow blowing, house cleaning, gardening, painting etc, and that the city will gain back Tourist Occupancy Tax (TOT) funds for fixing our roads and for safety services and housing,” said South Tahoe Chamber of Commerce CEO Duane Wallace. “Our schools may gain students as working families can afford to live here.”
Renting a vacation home was a popular alternative to motel and hotel stays, and the City began to regulate them in 2003. Ordinances were created and updated based on public input in 2008, 2011, 2014, 2015, 2016, 2017, and 2018. Adjustments were made to the ordinance to address traffic, noise, and trash concerns and enforcement that could be paid for through the increase in collected TOT.
Following the notice of entry of judgment of the judge’s ruling, which has not yet occurred, the City Council will have 60 days to decide whether to file an appeal.
Measure T proponents have been asked for comment. When received, this story will be updated.
The ruling from El Dorado County Superior Court:
