A district court previously allowed short-term rentals to continue operating in Dallas, despite the ordinance that would ban almost all of them.
DALLAS — An appeals court upheld a lower court’s decision blocking Dallas from enforcing an ordinance that would ban 90% of short-term rentals like Airbnb and Vrbo in areas zoned for single families.
A trial court previously granted the Dallas Short-Term Rental Alliance and other plaintiffs a temporary injunction, preventing the city of Dallas from enforcing its ordinance.
The fight has dragged on since June 2023 when the Dallas City Council voted 8-7 to approve a new ordinance, WFAA previously reported. The Dallas Short Term Rental Alliance brought its suit against the city in October 2023, arguing the regulations were unconstitutional and illegally discriminating against STR owners and operators.
In December 2023, District Court Judge Monica Purdy agreed with the short-term rental alliance that they would likely successfully argue that the city ordinance was unconstitutional, WFAA previously reported.
In its appeal, the city argued the trial court abused its discretion when it allowed the short-term rental owners to continue operating in the city. The city also argued that members of the short-term rental alliance have likely not paid required hotel occupancy taxes but cited no evidence, the court said.
“We therefore conclude the City has not shown the trial court abused its discretion and overrule the City’s fourth issue,” senior justice Yvonne Rodriguez said.
The trial court previously ruled that the short-term rental operators who filed the suit have a “substantial risk of probable, imminent and irreparable injuries to plaintiffs because plaintiffs, and the vast majority of other STR owners in Dallas, will immediately lose the ability to lease their property for less than 30 days.”
The appeals court upheld this finding.
A trial date to debate the constitutionality of the ordinance was set for June 2024 but was delayed. It’s unclear when the city and plaintiffs will again meet in court.
