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About Street roots. (Portland, OR) 1998-current | View Entire Issue (April 28, 2017)
Street Roots • April 28-May 4, 2017 E d ito r ia l Page 3 Charter update essential for lodging tax fa ir play n 1971, when the City of Portland new economic model and think beyond brick amended its charter to establish a and mortar “operators.” Portland has to transient lodging tax, you could hardly keep pace, because this business model is blame our policy makers for not anticipating only going to expand. the internet. It’s also a matter of laying the groundwork Obviously, times have changed. As for larger community standards, said Fish, written, the tax applies to lodging in hotels including existing regulations around safety and other short-term rentals, collected measures, which are impossible to enforce if through the operators. But today we can companies are operating off the grid. rent rooms and plot entire vacations around “I hate this term, ‘sharing economy.’ It’s a the world without contacting a destination or misnomer and the industry crafted it. What even dialing a number. we’ve seen pretty consistently is these new But is a website owner internet companies based in Silicon Valley that connects visitors very aggressively have mounted all out wars with short-term rentals on communities like Portland from adopting an “operator”? reasonable community standards. If this is a Our charter was behind on the times. preview of the new economy, it’s a great This May, voters will be asked if they concern. Our job is to make sure there’s a support modifying the city’s charter to level playing field. Our highest obligation is change the scope of the transient lodging to make sure consumers are safe.” tax to align with the 21st century business At 11.5 percent, the transient lodging tax model. is divided between the city and the county, There’s a reason we have a transient minus a nominal 1 percent going to support lodging tax. It’s not an arbitrary fee. Visitors the tourism bureau, Travel Portland. The and tourists have a real impact on the city’s portion, 5 percent, funds Portland’s infrastructure and services of a city. No Housing Investment Fund. The money is matter how the arrangements are arranged, dedicated to mitigate the impact these short the impact is the same - and growing year term rentals have on our housing market, by year. In 2016, nearly 9 million overnight where existing apartments are reserved for “person trips” were booked for the city, tourists who live elsewhere, not for housing according to Travel Portland. Portlanders. Passage of Measure 26-194 would allow Measure 26-194 does not raise the tax. It the city to collect the lodging tax on all only updates language to include this expanding online world. short-term rentals, including those Companies such as HomeAway are raking coordinated through websites. Airbnb in the benefits of a gentrifying Portland already does this - contributing about $1 without alleviating its burden on the city’s million to the city’s housing fund last year. housing crisis. They have taken thousands of But similar companies renting out our homes and apartments off the long-term neighborhoods have flouted the tax - most rental market to reap higher returns from notably HomeAway. The company also short-term rates, with negligible compliance operates VRBO and was recently purchased with the basic city laws. By Fish’s by online mega-reservation outlet Expedia. estimation, if HomeAway rentals paid the After years of legal battles between the lodging tax, it would generate about city and HomeAway over tax obligations, a $500,000 a year for the city’s housing federal court ruled that for the city to investment fund. It has operated for years proceed in collecting lodging taxes, it had to without paying a cent. update its charter language. Meanwhile, HomeAway’s owner Expedia, “They’re not only skirting the law, but they’re seeking a competitive advantage over in its report to shareholders, boasted $72 billion in gross bookings last year, with their competitors,” said City Commissioner nearly $9 billion in revenue - growing two Nick Fish. “They can price their rentals times faster than the industry at large. below the market. That’s not fair.” “If this is the future of how our economy Fish is leading the charge to update the is going to be structured, there are charter. conspicuous winners and losers, Fish said, Portlanders should support this measure. “And our job is to make sure everyone We aren’t alone in battling Expedia, plays fair.” HomeAway, VRBO and Change the charter. Let’s similar companies for get Portland up to fair tax collection. speed. Cities across the globe are trying to rein in this I Managing Editor Joanne Zuht joanne@streetroots.org Vendor Program Director Cole Merkel cole@streetroots.org Operations Director Sarah Beecroft Development Director Sarah Cloud Program Assistant Meghann Van Pelt, Jesuit Volunteer Development Assistant Patricia Romero Editorial Assistant Monica Kwasnik Reporters Emily Green, Suzanne Zaiokar, Sarah Hansell, Leonora Ko, Jared Paben, Amanda Waldroupe, Stephen Quirke Photographers Diego Diaz, Joe Glode, Arkady Brown Canvasser Desmond Hardison Board of Directors Chairman Brad Taylor Vice-Chairman Rachel Langford Treasurer Heather Stadick Secretary Dan Jones Directors Rich Rodgers, Michael Anderson, Sandra Hahn, John Brown, Nels Johnson and Alison Hallett Volunteers Jan Bayer, John Barker, Stacey Heath, Anjali Rathore, Zoe Klingmann, Dan Jones, Dennis Hogan, Monica McKune, Susan Wolfe, Lucas Hawthorne, Thomas Buell Jr., Jeanie Lunsford, Yasmin Amirsoleymani, Jason Cohen, Tom Ray, Doug Spangle, Susannah Kamala, Jon Raymond, Diana Richardson, Cherie Manning, Paul and Madeline Gefroh, Mary Anne Joyce, Del Shawn Davidson, Gillian Floren, Mark OIDani, Bridget Brown, Cody Travels, Bianca Butler, Robb Hengerer, Alex Cherin, Jenny Farres, Evan Firsick, Camber Hansen-Karr, Miranda Woods, Henry Brannan, Megan Smith, Luke Scheuermann and Helen Hill. 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