A federal appeals court has reaffirmed New Orleans’ broad authority to regulate short-term rentals but struck down two major provisions of the city’s current rules, marking the latest turn in a years-long legal fight that could shape how cities nationwide control vacation rentals.

In a decision issued on Tuesday, the U.S. Fifth Circuit Court of Appeals ruled that while the city has wide latitude to oversee short-term rentals, its ban on business entities holding rental permits and its restriction limiting advertisements to one unit per listing violate constitutional protections. The panel said those rules breached the Equal Protection Clause and the First Amendment, respectively.

The three-judge panel in the latest Hignell-Stark decision consisted of Judges Jennifer Walker Elrod, Edith J

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