Monday, June 24, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, July 6, 2016
Former AG: Hawaii’s Short-Term Rental Regulation Preempted By Federal Law
By News Release @ 2:06 AM :: 6758 Views :: Small Business, Taxes, Tourism

Legal Opinion: Hawaii’s Short-Term Rental Regulation Preempted By Federal Law

FORMER AG DAVID LOUIE: “THERE ARE GRAVE CONCERNS ABOUT THE LEGALITY OF 2015’S ACT 204…”

News Release from The Internet Association, July 5, 2016

Honolulu, HI – Today, former state attorney general David Louie issued a letter on behalf of the Internet Association highlighting legal concerns regarding 2015’s Act 204 and urging Governor David Ige to allow HB 1850 to become law.  HB 1850 is a bill that would allow Airbnb, HomeAway, FlipKey and other interested home sharing platforms to collect and remit taxes on behalf of their user community in Hawaii.

“The Internet industry strongly supports the passage of HB 1850, which provides significant public benefits through higher compliance rates and tax revenues. Short-term rentals allow Hawaii’s residents to earn needed income from their homes, provides a boost to the local economy, and can generate tens of millions of dollars in tax revenue for the state,” said Michael Beckerman, President and CEO of the Internet Association.

“There are grave concerns about the legality of 2015’s Act 204, which may conflict with federal law responsible for the success of the internet. It is our hope that Governor Ige will allow HB 1850 to become law as it will be a more effective means of maximizing tax revenue from the short-term rental industry,” said David Louie, attorney for the Internet Association.

The letter highlights the numerous benefits of HB 1850, a bill supported by the Governor’s own tax department, including streamlined collection of tax revenue for short-term rentals on home sharing platforms and important legal problems in implementing Act 204 from the 2015 legislative session.  It raises concerns that, without the implementation of HB 1850, significant portions of Act 204 remain in conflict with CDA Section 230 of federal law, which protects internet platforms from liability for user generated content.

“Significant portions of Act 204 conflict with and are likely preempted by Section 230,” the letter states.  “For example, if a third-party user fails to post any of the required information on a listing, liability would automatically attach to the website operator. As a result, the statute imposes liability on both websites and newspapers by treating them as the ‘publisher or speaker’ of the information (or lack thereof) provided by another in direct contravention of Section 230. This impermissible conflict makes Act 204 likely unenforceable and invalid.”

“The intermediary liability protections in Section 230 have allowed the internet to scale and spurred unprecedented innovation and economic growth,” Beckerman concluded.  “HB 1850 provides Hawaii streamlined mechanisms for revenue collection and averts an expensive and lengthy legal challenge.”

To read the full letter, click here.

###

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii