The appellants challenged a municipal by-law regulating short-term rental accommodations (STRs) in the Township of Tiny, arguing it was ultra vires the municipality's business licensing powers and effectively prohibited STRs.
The Court of Appeal dismissed the appeal, finding that the by-law was a valid exercise of the Township's broad statutory authority to license businesses and regulate matters affecting the economic, social, and environmental well-being of the municipality.
The court held that the by-law's restrictions, including a cap on the number of licenses and the total days an STR could be rented, were rationally connected to legitimate municipal objectives and did not amount to an outright prohibition.
