Court of Appeal upholds Measure T’s ban on VHRs in South Lake Tahoe residential areas

SOUTH LAKE TAHOE, Calif. - The ban on vacation home rentals (VHRs) in the South Lake Tahoe city limits has been upheld in the California Court of Appeal, Third Appellate District.

After South Lake Tahoe voters passed Measure T by a narrow margin in 2018, 3,517 votes to 3,459 votes. The South Lake Tahoe Property Owners Group filed a lawsuit shortly after its passing, challenging the measure. The group filed the appeal from a judgment of the Superior Court of El Dorado County made by Judge Dylan Sullivan. It challenged the constitutionality of a municipal ordinance that prohibits short-term or vacation rental housing, an issue in many cities, not just South Lake Tahoe.

On Tuesday, June 20, the Court of Appeal issued an opinion that substantially upholds Measure T. For the most part, the ban on VHRs in residential neighborhoods is upheld, but the court did remand one issue to the trial court regarding Qualified VHRs.

Qualified VHRs are allowed in South Lake Tahoe as outlined in Measure T, thus allowing local full-time residents to get a permit to rent their homes for up to 30 days per year. The Court remanded this issue to determine whether this provision unlawfully discriminates against non-residents.

The City is reviewing the opinion and potential next steps.

The plaintiff, the South Lake Tahoe Property Owners Group, had brought this action against the City to have Measure T declared unconstitutional. A link to the full opinion is here: C093603.PDF (ca.gov)