South Lake Tahoe Property etc. v. City of South Lake Tahoe
Annotate this CaseIn 2018, voters in the City of South Lake Tahoe (City) enacted Measure T, an initiative that prohibited the use of dwellings in residential zones as short-term or vacation rentals. Measure T amended the City’s vacation home rental ordinances to bar the City from issuing any new permits for vacation home rentals in residential zones except for permanent residents’ dwellings, and to declare that all such existing and new permits would expire by the end of 2021. Measure T also imposed more strict occupancy limits on vacation rental homes which were to be effective immediately. Plaintiff South Lake Tahoe Property Owners Group brought this action against the City to have Measure T declared unconstitutional. On cross-motions for summary judgment, the trial court granted summary judgment in favor of the City and denied plaintiff’s motion. On appeal, contended Measure T: (1) unconstitutionally interfered with vested property rights; (2) created an unconstitutional durational residency requirement to qualify for the exception to the ban; (3) exceeded the initiative power in violation of land use authority vested in the Tahoe Regional Planning Agency (TRPA); and (4) violated rights of privacy and equal protection by restricting occupancy. After review, the Court of Appeal reversed the trial court to the extent that it found Measure T’s exception for resident owners did not violate the dormant Commerce Clause. The judgment was affirmed in all other respects.
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