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The city of Portland has sued short-term rental broker HomeAway for $2.5 million in federal court, saying the Delaware-based company has refused to collect lodging taxes or make its host homes get safety inspections.
The lawsuit, filed this morning in U.S. District Court, says HomeAway and its subsidiary VRBO owe $1.5 million in lodging taxes and $1 million in fines for not requiring its clients to post their city permits, which show the homes have been inspected for safety.
The suit was first reported by KGW-TV.
As WW has previously reported, Portland City Hall says it's trying to crack down on short-term rental scofflaws by increasing safety inspections. It has yet to go after Airbnb, the online broker that allows people to offer short-term rentals in their homes—although many of Airbnb's clients remain outside the rules.
Last summer, Airbnb got the city to put new rules in place that legitimize its ongoing operations and bring many rentals into compliance with city code.
But the city has targeted HomeAway, which hasn't collected city and Multnomah County lodging taxes like Airbnb. The city began fining HomeAway in June.
UPDATE, 1:16 pm: HomeAway director of government relations Matt Curtis has issued a statement saying the company cannot comment on pending litigation.
"However," Curtis adds, "our goal in Portland, and all other municipalities for that matter, has always been to work collaboratively with lawmakers to introduce fair regulation that balances the needs of the community with the rights of property owners, residents and travelers. HomeAway has repeatedly offered to assist the city of Portland, and other cities, in collecting taxes that have been properly assessed and is disappointed that the city has chosen not to engage us to find a solution."
Willamette Week