By Dan Daily
Those of us looking for better cheaper more convenient domestic (also local) travel options have new choices. The internet has presented new barter untaxed smart phone techniques. They’re not point of sale, currency exchange, or legal tender transactions. They’re PayPal, Iphone, etc. credits. It’s not cash, not taxed, no making change. Vendors don’t have overhead associated with regional or interstate governance fees. Savings can be from six to forty percent. Add another fifteen percent, tips not accepted.
Instead of a Taxi, there’s Uber.com or Lyft.com. They’re independent contractors from an out of state web service. No sales tax or government intervention. They pick you up in 10 minutes or ride is free. You get pictures of vehicle, license, and driver (friend) on your phone. He/She has a background clearance and dresses upscale. They have their regular insurance plus one million in contractor liability. You’re covered better and safer than in a taxi. What’s wrong? It’s wrong that you still own a car.
Uber has divisions for special transit. There will be cheap choices later for handicap and ambulatory transport. How about a chauffeured ride to catch a flight from Omaha?
Hotels in Sioux Falls are $200 per night at convention or event times. Add 30% in taxes and tips, it’s $250. Even so, it’s hard to find a room. Franchisers won’t build because the city has gone into the hotel business at the airport and (soon) at the events center. The city doesn’t pay lodging taxes, a 25% advantage.
Enter Airbnd.com. It’s oriented toward barter to use your spare bedroom. What’s happened is entrepreneurs who lease then sublease apartments. It can’t be called a lease so call it overnight company. Again, internet barter and no tax with major savings. Nightly rates are half or less. Even antitrust city government can’t compete.
In future years, city sales tax revenue will suffer as a result of these new options. There will be another million or so budget so the city attorney can fight these events. Powerful out of state lawyers will come in to make litigation last and sue for false prosecution. Nobody wins but defendants and no equity independent contractors. I suggest diplomacy and new methods for city revenue but who listens to this citizen.