Companies like Airbnb provide a platform for people to rent and reserve private homes and rooms. Some local governments have struggled to collect applicable taxes.
Democratic Senator Mike McGuire has authored a bill that requires rental companies to collect transient occupancy taxes as required by local governments and to periodically report rental data.
"The online vacation rental businesses are often about one-way sharing," he says. "They share all the benefits of a local community’s services. But they often share none of the responsibilities."
But David Owen with Airbnb says the bill is impractical.
"Requiring platforms to take on this law enforcement role or face significant, perhaps crippling fines, creates insurmountable obstacles to this emerging industry," he says.
The bill was approved and now moves to another Senate committee.