WASHINGTON, September 25, 2018 – A newly proposed ordinance would decimate DC’s robust short-term rental market, depriving home-owners of their property rights and hurting neighborhood restaurants and small businesses that benefit from short-term rentals in the District.
The proposed restrictions on short-term rentals, to be released later today, are accompanied by a half-million-dollar ad campaign funded by the big hotel chains – who want to eliminate competition from short-term rentals. LaSalle Hotel Properties’s CEO told investors that a law curtailing short-term rental services would allow hotels to boost their room rates.
“Washington DC already gives millions in tax breaks to big hotels, and Council should not give hotels another handout by curtailing the property rights of District home owners,” said Carl Szabo, General Counsel of NetChoice.
Short-term rentals provide much-needed income to hundreds of DC residents. Over 52 percent of short-term rental hosts nationwide live in low-to-moderate income households. And almost half of the income hosts earn through short-term rentals helps them cover household expenses. Moreover, there are hundreds of local restaurants, shops, and cleaning services that benefit from the activity of short-term rentals.
“This legislation has been marred by misinformation and process problems and should not be rammed through in the closing days of this year’s final Council session. This issue deserves a robust public discussion and economic impact analysis,” continued Szabo.
“This bill will harm thousands of DC residents who rely on short-term rentals, not just home owners, but small businesses that benefit from the economic boost created by short term renting.”
NetChoice is a trade association of eCommerce businesses who share the goal of promoting convenience, choice, and commerce on the net.
As Yogi Berra would say, “It is Deja’ Vu all over again.”
At every turn, the New York City Council sides with the taxi cartels to the detriment of citizens outside of the heart of midtown Manhattan. This week was no different as the City Council voted to place a moratorium on new vehicle licenses for ridesharing services like Uber and Lyft.
Read more on our medium page.
Imagine having city inspectors knocking on your door with a warrant to enter your home and fine you $8,000. The crime? Renting out a room as a short-term rental without hotel-level fire alarm and sprinkler systems, elevator access, and a host of other absurdities.
The note shows that car rental companies receive a national yearly total of over $3 billion in tax breaks.
The note also provides data showing how much rental car companies received in sales tax exemptions in 2016.
Unlike car rental companies, people who use apps like Turo to lease out their cars do not enjoy these tax breaks
Ignoring this multi-billion dollar tax break, car rental companies claim that peer-to-peer car sharing platforms like Turo are the same as car rental companies. Big car rental companies are using “level playing field” rhetoric to justify calls for stiff regulations onto peer-to-peer car platforms designed to skew in favor of big rental.