UPDATE FOR APRIL 2ND, 2025:
The City Council voted last night not to appeal the judge’s ruling that overturned Measure T.
They then voted to put in place a 45 moratorium on the issuance of vacation home rental permits in areas where permits were prohibited by Measure T.
Staff and City council will be working to figure out what their next steps are: adopt the old ordinance, draft a new ordinance, we don’t know what the plan is yet.
This is an initial 45 day moratorium, the emergency moratorium can be extended if the city requires more time to get a program in place.
South Lake Tahoe’s Measure T Overturned: What’s Next for Vacation Rentals?
In a landmark decision, the El Dorado County Superior Court has overturned Measure T, a voter-approved initiative that restricted vacation home rentals (VHRs) in residential zones within South Lake Tahoe. This ruling marks a significant shift in the city’s approach to short-term rentals, reigniting debates over property rights, tourism, and housing availability.
A Brief History of Measure T
Measure T was passed in November 2018, aiming to phase out VHRs in residential areas by the end of 2021 while allowing them in commercial zones and the Tourist Core Area. The measure also permitted permanent residents to rent their homes short-term for up to 30 days annually. However, this exception became the focal point of legal challenges.
The Legal Battle
The South Lake Tahoe Property Owners Group challenged Measure T, arguing that it infringed on property rights and discriminated against non-resident homeowners. In June 2023, the California Court of Appeal upheld the city’s authority to ban VHRs but raised concerns about the measure’s exception for permanent residents, suggesting it might violate the Dormant Commerce Clause by favoring local residents over out-of-state property owners.
After further deliberation, the El Dorado County Superior Court ruled that the permanent resident exception was unconstitutional and inseparable from the rest of the measure, leading to its complete invalidation. This decision effectively reinstates the possibility for property owners to obtain VHR permits in residential zones.
What Happens Next?
With Measure T struck down, South Lake Tahoe officials must now determine how to regulate VHRs moving forward. Some city leaders, including Mayor Tamara Wallace, see this as an opportunity to create a more balanced approach that protects neighborhoods while allowing vacation rentals to return. Discussions may include zoning adjustments, stricter enforcement measures, and new permit regulations.
Meanwhile, the South Tahoe Chamber of Commerce has expressed optimism, noting that the ruling could restore jobs in industries like housekeeping, landscaping, and snow removal while increasing Tourist Occupancy Tax (TOT) revenue for city infrastructure and services.
Final Thoughts
The overturning of Measure T is a pivotal moment for South Lake Tahoe, with implications for homeowners, renters, and the local economy. As city officials and residents navigate the next steps, the debate over vacation rentals is far from over. While discussions continue, it’s important for the community to remain patient and allow the process to unfold, ensuring that any future regulations are thoughtfully crafted and beneficial for all stakeholders
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