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

2. 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

3. Matt Curtis
HomeAway

4. 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

5. Andrew Moylan
R Street - RoomScore.org

6. 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

7. Braden Boucek
Beacon Center of Tennessee

8. 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)

9. Christina Sandefur
Goldwater Institute

10. 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.

11. 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.

12. 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.

13. 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

14. 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

15. Matt Kiessling
TravelTech

16. 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.

17. 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

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