The recent attention by the Honolulu Star-Advertiser to Senate Bill 2963 (“Bill would let Airbnb brokers act as tax agents,” Feb. 19) gave readers a good perspective on how any piece of legislation deserves close, careful scrutiny, no matter how uncomfortable that may be to those who drafted the bill, or those who support it.
And those who read to the end of the informative piece were rewarded with an example of precisely why close scrutiny of legislation is essential to our democracy: After the Airbnb representative had indicated which provisions of the bill were likely illegal or unconstitutional, the Star-Advertiser quoted a representative of the American Hotel & Lodging Association, which favors the legislation, complimenting such analysis as “intelligible” and then perversely declaring such analysis to be “a very smart scare tactic.”
In fairness to the American Hotel & Lodging Association, it claimed to be recognizing a “good-faith effort by our legislators to create common-sense solutions that work for our communities, for our hotels, and for our legal short-term operators.” But regardless of good faith or common sense, any legislative effort must pass the tests of constitutionality and legality. Intelligible scrutiny makes our bills better, our laws effective and our democracy stronger. It’s not a scare tactic.
Unfortunately, these days, if one dares to challenge what others claim is absolute truth, one quickly finds oneself on the end of such name-calling, ostracism, or worse.
I’m sure Airbnb can speak for itself and how online platforms work. For our part, RBOAA (Rentals by Owner Awareness Association) is a registered not-for-profit organization, and our primary mandate is keeping our 1000-plus members and transient-vacation-rental owners abreast of their legal obligations, including paying taxes and ensuring their properties are “good neighbors” in their communities
Like the American Hotel & Lodging Association, we are also a registered lobby group. Unlike them, however, we value and encourage intelligible input by all individuals and groups on Hawaii legislation; we consider it a beneficial part of the democratic process, not something to be derided.
That means we work with state legislators to help ensure that proposed legislation affecting transient accommodation is fair and balanced.
And, importantly, that proposed legislation aligns with the U.S. Constitution, the Internal Revenue Code, the Hawaii Constitution and the laws of Hawaii.
Over the years since our inception, RBOAA has supported legislative proposals to ensure that taxes from vacation rentals are collected and remitted, and that non-resident owners name an on-island contact. RBOAA has also argued, successfully, against proposed legislation that would contravene privacy laws inherent in the Internal Revenue Code, violate Federal Communications Commission regulations, or strip from vacation rental owners, certain rights afforded all other taxpayers in Hawaii.
RBOAA has also fought against proposals that would create monopolies or significantly reduce competition for hospitality industry players who seem to believe that the Legislature is there to pick winners and losers.
The American Hotel & Lodging Association’s derision of intelligible analysis is cynical and regrettable, and does nothing to advance the discussion of bringing illegal operators into tax compliance.
What does move us all in the right direction is the commendable job being done by the Special Enforcement Section of the Hawaii Department of Taxation. Its work in educating operators on their obligations, and seeing the state collect taxes which are due to it, is worthy of praise and recognition, and of more resources to continue the success.
RBOAA supports reasonable solutions to tax and county zoning compliance. When creating legislation, it is prudent public policy to create laws that do not contravene the United States and the Hawaii Constitution.
The issues surrounding transient vacation rentals, the sharing economy, and tax collection and remittance are complex and deserve a fair, respectful and forthright discussion.