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State Push to Regulate Online Renters
Written by Michael Papich   
Monday, 16 March 2015 14:45

RALEIGH - Like Uber and Lyft is changing the taxi industry, online rental services such as Airbnb, FlipKey, and HomeAway may change the hotel industry. But Lynn Minges, president and CEO of the North Carolina Restaurant and Lodging Association, says her group is concerned that those who offer room through these services may skirt state regulations.

 


"Our members are held to certain accountabilities," Minges says. "First of all, they have to register and have a business license. There are those kinds of things in place that really aren't required by folks who rents rooms, townhouses, or homes through these short-term online rental marketplaces."

Minges says, in addition to regulations related to health, fire safety, and zoning, she is concerned about these companies not collecting taxes.

"We spend a lot of time with policy makers at the state capital and they are interested in providing a platform for the collection of sales tax, which should be required by law, as well as occupancy taxes that fund local tourism authorities across the state," Minges says.

But Minges says there is another step even before that.

"Folks who are in this business would somehow have to make themselves known," she says. "Right now that's not taking place and that makes it hard for state officials to collect sales tax or local officials to collect occupancy tax."

Minges also says regulations and registries would help customers by weeding out any potentially dangerous renters.

While Minges and her organization are pushing for these regulations, she says she does not want to eliminate companies such as Airbnb in the state.

"We don't fear the competition at all," she says. "In fact, we think that this is a pretty innovative business model and these are good folks trying to do the right thing. In fact, we've had some very good conversations with people who are in this online marketplace and they simply say 'We want to follow the laws too. We just want to understand what the laws are.'"

Last Updated on Monday, 16 March 2015 14:48
 
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