Enabling the Sharing Economy Through Smarter Statewide Regulation Responding in ways to preserve property rights and promote economic opportunity for homeowners.

Enabling the Sharing Economy Through Smarter Statewide Regulation Braden Boucek, Beacon Center of Tennessee Matt Curtis, HomeAway Matt Kiessling, TravelTech Andrew Moylan, R Street Christina Sandefur, Goldwater Institute Moderator: Steve DelBianco, NetChoice

Matt Curtis HomeAway

The problem Homeowner wants to earn additional income and uses the internet to advertise a room or home to rent for several days. City or Zoning commission is seeking to stop this use through: Overly restrictive regulations, Making activity illegal Making advertising illegal Demands to access personal information

Andrew Moylan R Street - RoomScore.org

Scoring Categories City Framework Restrictions Taxation Licensing Enforcement Total Grade Atlanta -40 50 F Austin, Texas 10 -25 -7 -5 63 D Boston -15 -6 62 D- Charleston, S.C. 5 70 C- Chicago 3 -10 -8 Denver Detroit 90 A- Fort Lauderdale, Fla. 80 B- Galveston, Texas -2 -1 97 A+ Houston -20 65 Indianapolis Las Vegas 73 C Los Angeles -35 55 Maui County, Hawaii Miami 68 D+ Nashville, Tenn. -3 82 New Orleans Phoenix Portland, Ore. -4 San Francisco AVERAGE 2.9 -13.3 -0.3 -2.5 74.7

Braden Boucek Beacon Center of Tennessee

Anderson v. Nashville P.J. and Rachel Anderson Metro Code § 6.28.030 3% cap on the number of non- owner occupied permits available Constitutional rights 1st Amendment 4th Amendment Due Process Equal Protection Vagueness Anti-Monopoly Clause (TN)

Christina Sandefur Goldwater Institute

Goldwater: Home-Sharing Act Model Legislation § 1: Short-term rentals may not be restricted based solely on class A county or local law, ordinance, or regulation (“law”): May not prohibit short-term rentals. May not restrict the use of or regulate short-term rentals based on their classification, use, or occupancy. A law may regulate short-term rentals if the regulation is narrowly tailored to protect the public health and safety. § 2: Burden of proof The question whether a law complies with Section 1 shall be a judicial question, and determined without regard to any legislative assertion that the law complies with Section 1. The state or political subdivision of this state that enacted the law shall establish by clear and convincing evidence that the land use law: Does not prohibit, restrict the use of, or regulate short-term rentals based on their classification; and Is narrowly tailored to protect the public health and safety. § 3: Definitions “Short-term rental” means any individually or collectively owned residential house or dwelling unit or group of units that is rented wholly or partially for any period of time and for residential use.

AZ Home-Sharing Act: Key Provisions Stops local governments from passing blanket bans on home-sharing. Allows local governments to enforce nuisance rules that protect quiet, clean, and safe neighborhoods. Requires local governments to demonstrate a real need for regulations that prevent crime, loud noises, or nuisances, and the regulation must be targeted toward fixing that problem. Reforms the tax structure for home-sharing to keep taxes low, fair, and easy to understand.

Primary Opposition in Arizona Hotel industry: The Industry has an interest in erecting barriers to entry in the vacation rental market to keep out competition. Concerned neighbors: Neighborhood activists are concerned about excess noise, traffic, etc., or are concerned about maintaining neighborhood demographics and aesthetics. Cities: City officials are concerned about ceding power over perceived local issues, or are concerned about continued ability to regulate nuisance.

Model is based on Arizona’s 2016 law An Act Relating To Online Lodging Marketplaces – Establishing Statewide Standards, Protecting Privacy, And Enabling Efficient Tax Remittance Model is based on Arizona’s 2016 law Creates statewide standard allowing short-term rentals. Creates registration process for homeowners to become STRs. Allows local enforcement of safety and parking regulations. Allows online platforms to collect and pay taxes at the state level, relieving homeowners of the need to file individually. Protects confidential homeowner personal information from unwarranted government inquiries

An Act Relating To Online Lodging Marketplaces – Establishing Statewide Standards, Protecting Privacy, And Enabling Efficient Tax Remittance What it does Enables home owners to earn income through by short-term rentals and makes tax collection for rentals more efficient. Why it’s needed Some localities are requiring listing services to turn over private information.In localities where laws are too restrictive or STRs are prohibited, compliance with local regulations and tax ordinances is low. Who likes it Home owners Business and vacation travelers Free market advocates Privacy advocates Government budget planners Online and print services that list rentals Businesses needing to house short-term employees

Matt Kiessling TravelTech

Myths vs Facts about STRs Increases/Decreases home values No evidence of either materially increasing or decreasing home values. Party houses Regardless of who is doing it, model allows for local enforcement of nuisance, parking, and trash ordinances. Strangers in neighborhood The “Stay Neighborly” Program educates owners how to discuss and work with neighbors. Hold platforms accountable for listings Federal law prevents this. Also, should we hold newspaper classified sections accountable for listings too? Health and Safety concerns Model gives locality ability to regulate local issues related to safety.

Myths vs Facts about STRs The more limiting an STR ordinance, the easier it is to enforce and therefore achieve compliance Onerous ordinances drive the activity underground, reduce compliance, and eliminate accountability Platforms need to play a role in holding owners/hosts accountable for ensuring compliance with local STR laws Existing federal laws prevent platforms from being held responsible STRs negatively impact the availability of affordable housing for local residents No material evidence of this claim exists, and the ability for owners to generate income from their home actually suggests the opposite Stricter laws are needed to deal with STR “party houses” Existing local laws are sufficient for dealing with STR guests in the same manner as local residents A statewide standards model for STRS usurps local control A reasonable framework provide localities the ability to regulate local issues related to health and safety

Enabling the Sharing Economy Through Smarter Statewide Regulation Braden Boucek Beacon Center of Tennessee braden@beacontn.org Andrew Moylan R Street amoylan@rstreet.org Christina Sandefur Goldwater Institute csandefur@goldwaterinstitute.org Matt Curtis HomeAway mcurtis@homeaway.com Moderator: Steve DelBianco NetChoice sdelbianco@netchoice.org Matt Kiessling TravelTech mkiessling@traveltech.org NetChoice.org/STR