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California
Related: About this forumOut at Home: New York's Response to Airbnb Puts San Francisco to Shame
http://m.sfweekly.com/sanfrancisco/your-humble-narrator-airbnb-david-chiu-new-york-dianne-feinstein/Content?oid=3226675Surprise, surprise, surprise: Airbnb is based here in San Francisco, where its business model is, indisputably, in violation of our similar city ordinances. But Schneiderman's counterpart, California Attorney General Kamala Harris, hasn't made any trouble for Airbnb. Quite the opposite: In the same week Schneiderman subpoenaed the $10 billion company, Harris held a fundraiser at Airbnb's opulent SOMA headquarters. Yes, our state's top law-enforcement official popped in to pass the hat in the den of a company with a business model that violates the laws of its home city, and hers....
This week, Mayor Ed Lee signed into law Supervisor David Chiu's ordinance validating Airbnb's business model, setting the stage for a proliferation of residential units to, lawfully, be refashioned into tourist beacons. Just how this nascent law will be in any way enforced remains elusive, even to the city bodies charged with enforcing it. The $25 million (or more) Airbnb owes the city in back taxes remains uncollected; settling that debt was not made a precondition of handing Airbnb the keys to the city.
This was all rather alarming to Sen. Dianne Feinstein, who inveighed against the Airbnb ordinance in an op-ed in the city's paper of record. It's not every day a senior U.S. senator sees fit to openly and publicly opine on pending municipal legislation. Your humble narrator has learned that, prior to penning the op-ed, Feinstein phoned Lee and attempted to explain to him how this ordinance would eviscerate city zoning rules, deplete already-scarce housing stock, and enable a company that has made a point of not paying its taxes....
Not 24 hours after the board last week passed Chiu's legislation, a press conference was convened at which Lee bestowed his official endorsement upon Chiu's Assembly bid. Venture capitalist Ron Conway, the mayor's preferred financier and a major early Airbnb investor, was not in attendance. But his presence hovered over the proceedings.
This week, Mayor Ed Lee signed into law Supervisor David Chiu's ordinance validating Airbnb's business model, setting the stage for a proliferation of residential units to, lawfully, be refashioned into tourist beacons. Just how this nascent law will be in any way enforced remains elusive, even to the city bodies charged with enforcing it. The $25 million (or more) Airbnb owes the city in back taxes remains uncollected; settling that debt was not made a precondition of handing Airbnb the keys to the city.
This was all rather alarming to Sen. Dianne Feinstein, who inveighed against the Airbnb ordinance in an op-ed in the city's paper of record. It's not every day a senior U.S. senator sees fit to openly and publicly opine on pending municipal legislation. Your humble narrator has learned that, prior to penning the op-ed, Feinstein phoned Lee and attempted to explain to him how this ordinance would eviscerate city zoning rules, deplete already-scarce housing stock, and enable a company that has made a point of not paying its taxes....
Not 24 hours after the board last week passed Chiu's legislation, a press conference was convened at which Lee bestowed his official endorsement upon Chiu's Assembly bid. Venture capitalist Ron Conway, the mayor's preferred financier and a major early Airbnb investor, was not in attendance. But his presence hovered over the proceedings.
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Out at Home: New York's Response to Airbnb Puts San Francisco to Shame (Original Post)
KamaAina
Oct 2014
OP
"its business model is, indisputably, in violation of our similar city ordinances."
KamaAina
Oct 2014
#2
upaloopa
(11,417 posts)1. What is wrong with the business model?
I have rented someone's condo in Park City through Airbnb.
KamaAina
(78,249 posts)2. "its business model is, indisputably, in violation of our similar city ordinances."
Lee urged the city's elected treasurer in writing to back off on collecting Airbnb's back taxes.
Any more questions?
upaloopa
(11,417 posts)3. I not asking about back taxes
KamaAina
(78,249 posts)4. Their business model is, in part, based on avoiding the city's hotel tax
upaloopa
(11,417 posts)5. Yea I get that so if the renters paid hotel tax
then it would be ok?
mackerel
(4,412 posts)6. I'm not familar with airbnb are they like
an exchange? Or more like a hostel?
KamaAina
(78,249 posts)7. AirBnB is roughly to people's houses
what Priceline is to hotel rooms.