Airbnb is secretly manipulating services, according to flyers that read 'Preserve Our Services'
In the heart of California, the city of Los Angeles is grappling with a significant budget crisis. Proposed layoffs of city workers and potential cuts to public services have sparked a movement, known as the Save Our Services campaign.
The key supporters of this campaign, aiming to alleviate the city's financial woes, include Airbnb, several labor unions, and various community groups. Airbnb, the main coordinator behind the campaign, has been actively engaging with over 200,000 residents and contacting more than 50,000 people to gain support.
The labor unions involved in the campaign are the International Brotherhood of Teamsters (Teamsters Joint Council 42), International Union of Painters and Allied Trades, California IATSE Council, and International Brotherhood of Electrical Workers Local 18. These unions have urged Los Angeles leaders to pass the proposal, emphasizing the need to address the $1 billion budget deficit without cutting services for residents.
The campaign proposes addressing the budget crisis by allowing short-term rentals of second homes. According to the campaign's website, this could generate about $80 million in tax revenue annually. The revenue would come from sales tax generated by tourists spending money at local businesses and a transient occupancy tax of 14% on short-term rentals.
However, critics argue that Airbnb hosts often evade the transient occupancy tax, and the city should enforce the tax instead of opening up more homes for short-term rentals. Despite this, 70% of the 50,000 people polled by canvassers support the Save Our Services campaign, according to Airbnb.
The Los Angeles City Council has unanimously voted to impose new rules on short-term rentals, regulating a phenomenon popularized by platforms like Airbnb. The City Council recently approved new rules for Airbnb-type rentals after years of debate.
The campaign's supporters include a broad coalition of groups, such as unions like Teamsters Local 911 and the business-aligned Central City Assn. Marni Lustig, a fashion photographer, is among the residents who support the proposal. She currently rents her Pico-Robertson home on Airbnb and would buy another home in L.A. and rent it too, if the campaign achieves its goal.
The city's financial woes are likely to continue for several years due to weak tax revenues, skyrocketing legal payouts, and increasingly expensive union contracts. The Los Angeles City Council has approved a $14-billion budget, scaling back the public safety plans proposed by the mayor.
City Councilmember Hugo Soto-MartΓnez believes Airbnb is using deceptive tactics to get sympathy from the public regarding the campaign. Airbnb, however, maintains that the campaign aims to generate new tax revenue for city services and union jobs. Despite not being listed as a supporter on the campaign's website or fliers, Airbnb is involved in the Save Our Services campaign but has not disclosed whether it has contributed any money to the campaign.
In summary, the Save Our Services campaign in Los Angeles, spearheaded by Airbnb, several labor unions, and community groups, aims to alleviate the city's budget crisis by allowing short-term rentals of second homes. The campaign proposes that this could generate about $80 million in tax revenue annually, helping to address the city's financial challenges. However, the campaign's registration status with the Los Angeles City Ethics Commission remains unclear, and critics argue that Airbnb hosts often evade the transient occupancy tax.
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