Los Angeles Times

State launches debate over home-sharing rentals

- By Melanie Mason melanie.mason @latimes.com

— Lawmakers grilled representa­tives from short-term rental companies Airbnb and Homeaway on taxes, regulation and safety concerns last week, previewing what will probably be a hot debate in the Capitol this year.

The companies appeared before a joint hearing of the Assembly committees on local government and revenue and taxation to discuss the implicatio­ns of the increasing popularity of home-sharing services.

The rapid expansion of such companies has prompted new scrutiny surroundin­g their impact on housing markets and debate over local government­s collecting taxes on the shortterm rentals as they do for traditiona­l hotels, which has been advocated for by the hotel industry.

“Regardless of who the competitor is, it’s only right that everyone who participat­es in this business follows the same rules and pays their fair share,” said John Caldwell, a lobbyist for the California Hotel and Lodging Assn.

Airbnb has struck deals with individual cities such as San Francisco and San Jose to collect taxes; Los Angeles is exploring its own agreement with the company.

“The sharing economy is here to stay and we should be working together on progressiv­e rules that help regular California­ns pay their bills and pursue their dreams,” said Airbnb’s Christophe­r Nulty.

No specific legislatio­n was discussed at the hearing, but there are several pending bills that concern short-term rentals. A measure by Sen. Mike McGuire (D-Healdsburg) would require online vacation rental companies to disclose shortterm rental informatio­n to cities and counties. Sen. Isadore Hall (D-Compton) is carrying a measure that would require companies to make it clearer to their users that rentals could be in violation of their lease. Another bill by Assemblyma­n Mat SACRAMENTO thew Harper (R-Huntington Beach) would exempt short-term rentals from local hotel taxes.

Still, some lawmakers urged caution in crafting statewide regulation­s for these emerging businesses.

“When you try to get ahead of the curve with regulation­s, it really becomes not only over-burdensome, but also becomes not relevant to the issues at hand as this technology develops and enters the marketplac­e,” said Assemblyma­n Matt Dababneh (DEncino).

Robert Callahan, a lobbyist for the Internet Assn., a trade group that includes Airbnb, praised the Assembly’s “informatio­n-gathering approach” to the issue.

“Home-sharing companies … have become a key part of the California economy and our state’s public policy approach should be focused on fostering their continued growth, rather than limiting it,” he said.

 ?? Genaro Molina Los Angeles Times ?? ROXANNE BROWN stands and applauds at the end of a presentati­on critical of short-term rental companies at a recent Venice Neighborho­od Council meeting.
Genaro Molina Los Angeles Times ROXANNE BROWN stands and applauds at the end of a presentati­on critical of short-term rental companies at a recent Venice Neighborho­od Council meeting.

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