Court reverses vacation rental regulations in South Lake Tahoe

The El Dorado County Superior Court has overturned Measure T, which regulated vacation home rentals in South Lake Tahoe. This measure, passed in 2018, aimed to phase out rentals in residential areas but included an exemption for permanent residents. The court found the exemption unconstitutional, stating it favored local residents over non-resident property owners. This ruling means that property owners can now apply for vacation home rental permits in residential zones. The South Lake Tahoe City Council has 60 days to decide on an appeal. Legal experts suggest the ruling may lead to lawsuits from property owners seeking damages for lost rental income due to Measure T.