Staff Writer
SOUTH LAKE TAHOE, Calif. — In a significant legal development, El Dorado County Superior Court Judge Gary Slossberg has overturned Measure T, a voter-approved initiative that sought to phase out vacation home rentals (VHRs) in South Lake Tahoe’s residential areas. The ruling, issued on March 13, 2025, deemed a key provision of the measure unconstitutional, effectively nullifying the entire ordinance.
Background on Measure T
Measure T was narrowly passed by South Lake Tahoe voters in November 2018. The measure aimed to eliminate VHRs in residential zones by December 31, 2021, while permitting them in designated commercial zones and the Tourist Core Area. An exception allowed permanent residents to rent their properties on a short-term basis for up to 30 days per year.
Legal Challenges and Court’s Findings
Shortly after its passage, the South Lake Tahoe Property Owners Group challenged Measure T, arguing that it violated constitutional rights by discriminating against non-resident property owners. The case progressed through the legal system, with the California Court of Appeal for the Third Appellate District upholding the city’s authority to ban VHRs in residential zones in June 2023 but expressing 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.
Upon review, Judge Slossberg found that the permanent resident exception did not advance “a legitimate local purpose that cannot be adequately served by nondiscriminatory alternatives.” He concluded that this provision was inseparable from the rest of Measure T, leading to the invalidation of the entire measure.
City’s Response and Future Considerations
The City of South Lake Tahoe is currently deliberating its next steps. According to a press release from the city, officials are awaiting the formal entry of judgment, after which they will have 60 days to decide whether to file an appeal.
Mayor Tamara Wallace expressed optimism about the ruling, stating, “This is a huge opportunity for the Council to be real leaders to address the issues while allowing [VHRs] back.” She emphasized the need to revisit and potentially revise regulations to protect neighborhoods and address housing concerns.
Implications for the Community
The overturning of Measure T has significant implications for South Lake Tahoe’s housing market and local economy. Supporters of the ruling argue that it will restore jobs related to vacation rentals and increase the city’s revenue from tourist occupancy taxes, which can be allocated to infrastructure and public services. Duane Wallace, CEO of the South Tahoe Chamber of Commerce, remarked, “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.”
Opponents, however, remain concerned about the potential negative impact on residential neighborhoods, citing issues such as noise, parking congestion, and the availability of affordable housing. The city council faces the challenge of balancing the economic benefits of VHRs with the quality of life for permanent residents.
Next Steps
As the city evaluates its legal options, stakeholders on all sides are preparing for further discussions on how to regulate vacation home rentals effectively. The outcome of these deliberations will shape the future landscape of South Lake Tahoe’s residential and tourism sectors.
