City Council Making Too Many Wrong Mistakes

City Council Making Too Many Wrong Mistakes

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.

Don’t Let NY City Stay in Bed with Hotel Conglomerates

Don’t Let NY City Stay in Bed with Hotel Conglomerates

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.

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NetChoice Releases Policy Note on Car Rental Handouts

Last week, alongside the publishing of this article on The Drive, NetChoice released a new policy note, examining the large handouts big rental car companies receive.

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.

Read the full policy note here, and take a look at press coverage on its findings by Reason Magazine and The Drive.

The Drive - Major Rental Car Companies Want Car Sharing Services to Be Equally Regulated

“Turo hosts have an economic disadvantage compared to giant rental car companies. NetChoice estimates that rental companies avoid paying $3.2 billion annually in state sales taxes, while Turo estimates that [its] hosts have paid over $450 million in state sales taxes when they purchased their personal vehicles,” Michelle Peacock, VP and Head of Government Relations at Turo told The Drive.

Chicago Business - Your neighbor isn't a business

There are benefits to being a traditional car-rental company that platforms like Turo don’t have. Traditional car-rental companies get all of what they charge for renting a vehicle. On Turo, the bulk of the money goes to the car owner and the platform only gets a small portion of the fee. Traditional car-rental companies get millions in tax subsidies, grants and federal bailouts. Individual car owners don’t. In fact, NetChoice estimates that rental companies avoid paying $3.2 billion annually in state sales taxes, while Turo estimates that its hosts have paid over $455 million in state sales taxes when they purchased their personal vehicles.

NetChoice Opposition to Baltimore City Council Ordinance 18-0189

NetChoice Opposition to Baltimore City Council Ordinance 18-0189

New York City Passes Short-Term Rental Bill, Outsourcing Legal Enforcement Burden to Internet Platforms Like Airbnb, Homeaway & VRBO

Rules Will Imperil Short-Term Renters from Springfield Gardens to Hell’s Kitchen

NEW YORK, July 18, 2018 – The future of short-term rentals (STRs) throughout New York City was put at risk today by New York City Council’s passing of Int. 9081 placing legal enforcement responsibilities on Internet home sharing platforms like Airbnb, HomeAway and VRBO.

 

The proposal would:

  • place a minimum fine of $1,500 on STR platforms every time a property owner makes inaccurate claims on a short-term rental post regardless of intention;
  • require platforms to obtain, manage and certify that every property owner is abiding by local jurisdiction or homeowners association rules;
  • require short-term rental platforms to share all private transaction data, such as bank account numbers, with government agencies.

 

“New York City risks the sensitive financial data of its residents and tourists by forcing them to hand over bank account numbers to government agencies,” said Carl Szabo, vice president and general counsel at NetChoice.

“The city’s latest anti-tech action threatens New Yorkers’ privacy and financial security, forcing many to choose between protecting their financial information and paying their mortgage.”

“New York is once again going after short-term rentals by mandating hefty requirements on platforms, many of which could be illegal,” continued Szabo. “The City Council’s proposed rules would burden New Yorkers who use STR platforms to help make ends meet.”

 

About NetChoice

NetChoice is a trade association of eCommerce and online businesses that share the goal of promoting convenience, choice, and commerce on the net.

Reason Magazine - America's Biggest Rental Car Company Is Lobbying to Drive Away Competitors

“If the city could force Turo owners to pay these exorbitant airport fees, then it could likewise impose the fee on anyone driving into SFO to pick up friends or family,” says Steve DelBianco, president of NetChoice, a trade association of online businesses that advocates for consumer freedom. “That’s ridiculous. But so is the aim of this lawsuit.”

“The relationship between rental car companies and state governments often goes both ways. In nearly every state, cars purchased by such companies are not subject to sales tax. NetChoice estimates that this tax break saves them as much as $3 billion annually. Just in California, where other residents have to pay a 7.25 percent tax on the price of a new car, it saved rental car companies more than $560 million in 2016. Peacock argues that if state governments want a level playing field, they should consider giving all residents access to the same exemption.”

Technology & Marketing Law Blog – Challenge to Santa Monica’s “Anti-Airbnb” Law Dismissed–Homeaway v. Santa Monica

Technology & Marketing Law Blog – Challenge to Santa Monica’s “Anti-Airbnb” Law Dismissed–Homeaway v. Santa Monica

Opening Brief from Airbnb/HomeAway. Amicus briefs in support of Airbnb/HomeAway from NetChoice, Copia, and Internet companies.