This is in response to the May 8 letter from Chris Lehane, global head of public policy for Airbnb … Airbnb: We’re not afraid of paying taxes in N.J.
Just imagine for a moment … you are offered the opportunity to pay any New Jersey state tax or fee on a voluntary basis. Yes, you heard that correctly … VOLUNTARY. To make it even more interesting, imagine you get to tell Trenton how much you owe, all the while it is impossible to verify that information, even when audited. You would take that deal in a heartbeat … wouldn’t you?
Well, that is exactly what Airbnb is trying to do.
A recent letter by Airbnb’s global head of public policy, laughable entitled, “We’re not afraid of paying taxes in N.J.” attempts to sell voluntary collection agreements (VCA) as a good deal for New Jersey.
These voluntary agreements that Airbnb is attempting to hoodwink policy makers across the country into agreeing to, tips the scales in their favor and provides a government sanctioned competitive price advantage over traditional hotel and lodging establishments. How does a VCA allow Airbnb to pay its “fair share,” when there is no telling what that share is exactly.
And please forgive us for our skepticism, but Airbnb only devised the scheme of VCA’s when they saw the policy handwriting on the wall and decision makers began the discussion of leveling the playing field.
What’s even worse, Airbnb is using their new-found love for “paying taxes in N.J,” as a head fake from the enactment of any real and tangible regulation of their business model. Sadly, Airbnb is not required to conform to even the most basic health and safety regulations that are required of traditional hotels or bed and breakfast inns.
It’s imperative that our tax policies, as well as even the most basic regulation protecting the health and safety of New Jersey residents, reflects the 21st century marketplace. Airbnb’s business model is no longer renting out an empty room to supplement the mortgage payment; it is a 21st century web-based lodging empire that has become an integral part of the tourism industry and should be subject to the same tax and regulatory standards of all other lodging businesses. As more and more “disruptive” forces enter the various marketplaces, policy makers need to make sure laws and regulations are updated to meet those forces head on, and to ensure they are not given a competitive advantage over well-established New Jersey businesses.
These discussions are not dissimilar to the issue know as sales tax fairness, which requires online only retailers to collect and remit the sales tax, just like their bricks and mortar counter parts have always had to do. New Jersey addressed this issue several years ago and leveled the playing field for “Main Street” retailers. It is becoming urgent to provide similar protections to our hotel and lodging industry, one of the most critical industries in the state due to New Jersey’s reliance on tourism.
We are happy companies like Airbnb are not afraid of paying taxes in N.J., but they should be required to collect and remit those taxes by the same rules as all the other companies in the hotel and lodging industry. Likewise, we look forward to their editorial saying they are no longer afraid of complying with the same health and safety regulations and rules that protect all their guests.
Joseph Simonetta, CAE
Executive Director
NJ Hotel & Lodging Association
414 River View Plaza | Trenton, NJ 08611
P: 609-278-9000 | E: jsimonetta@njpsi.com