BOISE -- Attorney General Lawrence Wasden says he'll challenge a new rental policy for hundreds of state-owned lake shore lots in district court after the Idaho Supreme Court tossed out his case.

Wasden sought to block the state from using a new formula approved by the Idaho Land Board to raise the rents paid by owners of cabins and vacation homes built on the lots.

On Wednesday, the Idaho Supreme Court granted the land board's motion to dismiss Wasden's case.

Wasden claims the new policy sets rents at below-market value, in violation of the state constitution, which requires the land be managed for maximum profit over time.

The high court did not dispute Wasden's argument, but found his case was best left up to the district court.

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