Peter Schorsch
States that embrace short-term rentals and other segments of the burgeoning “sharing economy” tend to be better innovation incubators than states that don’t, according to new research from a consumer electronics trade group.
The Consumer Technology Association, the trade group that puts on the annual International Consumer Electronics Show, included a category on state policies regarding short-term rental platforms – such as Airbnb, HomeAway and VRBO – in its forthcoming 2018 U.S. Innovation Scorecard.
The report isn’t due out until next month, but CTA offered a taste of what’s to come in a Tuesday release. In short, CTA says “states that earn a ‘C’ grade or lower in the Short-Term Rentals category are not likely to be among the top-tier Innovation Champion states.”
Kansas and New Hampshire are both listed as “top-ranked Innovation Champion states,” due to the educational attainment of their populations as well as embracing “the economic opportunity of short-term rentals.”
CTA pointed to a comprehensive tax agreement between Kansas and Airbnb that’s brought in $500,000 in tax revenues for the state since going into effect in February 2017. New Hampshire’s voluntary tax agreement with the vacation rental platform also got a nod.
So, how does the Sunshine State fare in the report? Patchwork regulations when it comes to short-term rentals led to a middling grade of “C.”
From the CTA release: “parts of Florida are taking advantage of similar tax agreements to bring in tens of millions of dollars to state and country coffers. In fact, 39 Florida counties have these tax agreements, but 24 counties do not, leaving many rental owners unprotected depending on where they reside. For instance, in Miami Beach, residents can be fined up to $20,000 for using short-term rentals. A bill to support the platforms statewide fell just short this legislative session, prompting Florida – an Innovation Leader, the second-highest of our four tiers – to earn a ‘C’ grade in our Short-Term Rentals category.”
Still, Florida came in ahead of fellow large state New York, which CTA described as having “some of the most egregious short-term rental policies in America.” It was one of only two states to earn a “D” in the report.
