The “sharing economy” involves matching up owners of latent high value assets with customers in need of those assets, such as a car ride, a room to sleep, or a neighbor's lawn mower, Christopher Lutz, of Horwood Marcus & Berk Chartered, writes in this week’s issue of the Bloomberg BNA Weekly State Tax Report.
Given the breadth of this new business model, the opportunities it provides to the underemployed, and the potential revenue involved, its abolition is improbable, Lutz explains.
However, with the rise of businesses such as Uber, Lyft, and Airbnb, the new business model that is emerging is not adequately addressed by state and local laws.
In his article, which can be read in its entirety here, Lutz discusses how governments can reach mutually beneficial solutions with respect to the sharing economy and provides a specific analysis of how states have, have not, and should go about treating two of the most prominent segments of the sharing economy: ridesharing and homesharing. His article also discusses a less common, but equally interesting segment: mealsharing.
Some notable developments from the State Tax Developments Tracker – Bloomberg BNA’s new tool for monitoring important developments in all the states:
Florida Department of Revenue Issues Guidance on Whether Meals Included with the Purchase of an Admission Ticket May Be Purchased for Resale Tax-Free by a Taxpayer
Hawaii Department of Taxation Announces Adoption of Amended Hawaii Administrative Rules on Compromises
California Franchise Tax Board Releases December 2014 Tax News
For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library.
In other developments…
Sutherland SALT Shaker: November 2014 Digest
District of Columbia – OTR precluded from relying on third-party’s transfer pricing analysis, by PwC
LDR Releases Statement Regarding Legislative Audit Report, by the Louisiana Department of Revenue
Compiled by Priya D. Nair
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