NEW ORLEANS (AP) — A New Orleans law restricting licenses for short-term Airbnb-style rentals to city residents unconstitutionally blocks out-of-state property owners from the vacation rental market in the popular tourist destination, a federal appeals court has ruled.
The 2019 ordinance was adopted by the New Orleans City Council in hopes of slowing the spread of “whole-home” vacation rentals, amid complaints that the rentals were driving up property costs and tax assessments, that full-time residents were leaving historic neighborhoods and that vacationers’ all-night parties and noise were often pushing the limits of New Orleans’ reputation for revelry.
A key provision of the law says that a person can get a short-term rental license only for their primary residence — a residence for which they claim a Louisiana homestead property tax exemption. The 5th U.S. Circuit Court of Appeals ruled that the provision unconstitutionally restricts interstate commerce.
The city of Los Angeles has a similar requirement that mandates short-term rental operators must live in their property in order to receive a home-sharing permit.
Will Los Angeles’ requirement be ruled unconstitutional if challenged in court?