Presenting a live 90-minute webinar with interactive Q&A
Lyft, Uber, Airbnb and Municipalities: Maximizing Tax and Licensing Revenue Opportunities Navigating Legal, Regulatory and Tax Issues in the Peer-to-Peer Economy
THURSDAY, APRIL 18, 2019
1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific
Today’s faculty features:
Jonathan M. Huerta, Attorney, King Spry Herman Freund & Faul, Bethlehem, Pa. Abbey Stemler, Assistant Professor of Business Law and Ethics, Indiana University, Bloomington, Ind.
The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 1. Tips for Optimal Quality FOR LIVE EVENT ONLY
Sound Quality If you are listening via your computer speakers, please note that the quality of your sound will vary depending on the speed and quality of your internet connection.
If the sound quality is not satisfactory, you may listen via the phone: dial 1-866-871-8924 and enter your PIN when prompted. Otherwise, please send us a chat or e-mail [email protected] immediately so we can address the problem.
If you dialed in and have any difficulties during the call, press *0 for assistance.
Viewing Quality To maximize your screen, press the F11 key on your keyboard. To exit full screen, press the F11 key again. Continuing Education Credits FOR LIVE EVENT ONLY
In order for us to process your continuing education credit, you must confirm your participation in this webinar by completing and submitting the Attendance Affirmation/Evaluation after the webinar.
A link to the Attendance Affirmation/Evaluation will be in the thank you email that you will receive immediately following the program.
For additional information about continuing education, call us at 1-800-926-7926 ext. 2. Program Materials FOR LIVE EVENT ONLY
If you have not printed the conference materials for this program, please complete the following steps: • Click on the ^ symbol next to “Conference Materials” in the middle of the left- hand column on your screen. • Click on the tab labeled “Handouts” that appears, and there you will see a PDF of the slides for today's program. • Double click on the PDF and a separate page will open. • Print the slides by clicking on the printer icon. NOTE
This presentation and the information within are the product and sole ownership of KingSpry and you agree not to copy, reproduce, republish, transmit, modify or distribute said presentation or information, except for your personal, noncommercial use, absent the prior written approval of KingSpry. Any other copying, distribution, retransmission, or modification of information or materials in this presentation, whether in electronic or hard copy form, without the express prior written permission of KingSpry, is strictly prohibited. These rights are valid and protected in all forms, media, and technologies existing now or hereafter developed. All rights reserved.
Attendance at this webinar does not constitute legal advice by KingSpry and does not create an attorney-client relationship. Should you or your organization need legal counsel, please contact your organization's attorney or contact KingSpry.
5 TODAY’S AGENDA
Overview of ride-sharing issues Overview of home-sharing issues Review of recent developments, cases Enforcing, drafting regulations and ordinances Strategies for recovering and maximizing revenue
6 THE GIG ECONOMY Rall, Ted. Rall.com, August 4, 2015. http://rall.com/ comic/the-gig- economy
7 UNDERSTANDING THE SHARING/GIG ECONOMY
Not a new concept One person has resources, another person wants to use them temporarily Technology changed how the arrangements were made ▪ From classifieds/bulletin boards ▪ To Craigslist ▪ To apps Businesses capitalize on the technology
8 TERMINOLOGY
Sharing Economy ▪ From perspective of consumer Gig Economy ▪ From perspective of employer/employee Transportation Network Company ▪ Uber, Lyft ▪ Make-up lion share of Gig Economy – approximately 56% Lodging Network Company ▪ AirBNB, HomeAway, PrivateAcre
9 THE PLAYERS
eBay YourMechanic Etsy Uber Lyft Postmates GrubHub AirBNB HomeAway Turo TaskRabbit
10 BY THE NUMBERS
11 BY THE NUMBERS
Uber HomeAway ▪ $60B ▪ $3B ▪ Planning $120B IPO Turo (doubled value in 2 ▪ $50M months) Leftover Swap Lyft ▪ Priceless…or maybe ▪ $15.1B worthless AirBNB ▪ $30-38B
12 HOME-SHARING
AirBNB HomeAway/VRBO PrivateAcre Websites (brokers) enable occupants (hosts) to rent their living space Entire homes to spare bedrooms to couches Single day to weeklong rentals
13 THE DISRUPTION
Land-Use Impact ▪ Permits or illegal adaptation of homes into mini-hotels ▪ Change in residential character ▪ Loss in housing value Revenue ▪ Transient Occupancy Tax ▪ How to collect
14 MANAGING THE DISRUPTION
Code Enforcement ▪ Home-Sharing Specific Regulations ▪ Occupancy ▪ Supervision ▪ Location ▪ Remedies ▪ Administrative Complaint Procedure ▪ Litigation ▪ Fines Zoning considerations ▪ Lawful nonconforming use 15 FROM THE PRIVATE SECTOR
Local Ordinances Fees ▪ Transient Occupancy Taxes ▪ Registration ▪ Annual Inspections ▪ Permits ▪ Insurance
16 RIDE-SHARING
AKA Transportation Network Companies Web-based applications connect users and drivers Allow potential passengers to select from classes of drivers, as well as track location of drivers, and manage payment/tips
17 THE DISRUPTION
Regulations ▪ TNCs compete with taxis, but may not be subject to common carrier requirements ▪ UBER/PUC litigation Safety Requirements ▪ State or Local Municipality ▪ Federal Preemption
18 MANAGING THE DISRUPTION
Regulations ▪ Licensing ▪ Fees ▪ ADA/Common carrier compliance ▪ Fare rates/surge pricing ▪ Safety ▪ Insurance ▪ Background checks ▪ Checks for vehicle How to effectively regulate ▪ UBER/Greyball & Waymo 19 FROM THE PRIVATE SECTOR
Competition with Taxis ▪ Barriers to entry Employee/Employer Relations ▪ Numerous lawsuits across country challenging classification ▪ Flexibility in schedule ▪ Workers drive earnings ▪ Independent investment ▪ Unionization ▪ Seattle Ordinance 20 RECENT NATIONAL CASES
• General • Section 230 Denial of Preemption • HomeAway.com v. City of Santa Monica, No. 18-55367 (9th Cir. 2019) • Data Sharing Prohibition • Airbnb Inc. v. City of New York, 18-cv-7712 (U.S. District Court, Southern District of New York) • Ridesharing specifically • Uber drivers classified as independent contractors • O'Connor v. Uber, No. 14-16078 (9th Cir. 2018)
21 GENERAL REGULATORY RESPONSES
• Prohibition • Austin (Uber)
• Command-and-Control • New York (Uber)
• Submission • Indiana (Airbnb)
• Collaboration • San Francisco (Airbnb)
22 DRAFTING AND ENFORCING REGULATIONS
• Focus on Platforms • Section 230 will not be an issue • Command-and-control: • Ensure that Section 230 does not apply • Check for state preemption, if local • Beware of platform advocacy and push-back • Regulate the platforms and not individual users • Need data sharing • Submission • Fails to address important market failures • Collaboration • Tailored agreements allows for creativity and data sharing
• Can be good, but difficult to enforce 23 STRATEGIES FOR RECOVERING AND MAXIMIZING REVENUE
• Taxes • State • Sales • County/city • Occupancy/innkeepers • Require platforms to collect • State or local rules • Local jurisdictions, make sure that enabling statutes don’t restrict you • Private agreements • Minor success stories • Florida, New York, Boston 24 THE FUTURE
Will the Gig-economy last? ▪ Workers declining or take-home pay declining Driverless Ride-Sharing ▪ Waymo (Google) and Uber
25 Toles, Tom. Washington Post, October 5, 2015. https://www.was hingtonpost.com /news/opinions/ wp/2015/10/05/t he-so-called-gig- economy-could- also-be-called- the-gag- economy/?tid=ss _mail&utm_term =.2a9b5cddda19
The so-called Gig Economy could also
be called the Gag Economy 26 Presented by Jonathan M. Huerta, Esquire KingSpry Law OFFLINE QUESTIONS? Firm And
Abbey Stemler, Assistant [email protected] Professor Business Law and Ethics, Indiana [email protected] University Abbey’s Research: https://tinyurl.com/y4n3nwj9
27