Knowledge Center

Monday, December 08, 2014

Legitimizing the Sharing Economy: Reconciling the Tension Between State and Local Policy Concerns and Innovation

Tax Management Weekly State Tax Report, December 5, 2014

by Christopher T. Lutz

The ''sharing economy'' involves matching up owners of latent high value assets with customers in need of those assets. This could involve a car ride, a room to sleep, a neighbor's lawn mower, or even someone's time. Part of what makes the sharing economy so unique is the relative levels of convenience and cost-effectiveness it facilitates. That convenience, however, is not without its critics.

State and local laws do not adequately address this new business model and "shared" economy" exemplified by such businesses as Uber, Lyft, and Airbnb. In this article, Christopher Lutz discusses specific sectors of this ''sharing economy'' and explains how governments can work with these industries to create a cooperative resolution. Doing so would foster business innovation and generate more revenue for localities and states.

Christopher T. Lutz, an attorney in the State and Local Tax (SALT) Group of Chicago based Horwood Marcus & Berk, concentrates his practice on multistate tax issues. Chris is involved in resolution of state and local tax controversies for all varieties of taxpayers, from multinational corporations to individuals. He advises clients on a range of issues including sales and use tax, corporate income tax, franchise tax, personal income tax, and unclaimed property.

To read the full article, please click HERE.

Reproduced with permission from Tax Management Weekly State Tax Report, WSTR 2014 49, 12/05/2014. Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com

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