SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ALBANY ---------------------------------------------------------------X : AIRBNB, INC., : : Index No.

: 5593-13 Petitioner, : : RJI No.: 01-13-111676 : -again t: J!dge "era#d $. Conno##% : : &RIC '. (C)N&I*&R+AN, Attorne% "enera# : o, t-e (tate o, Ne. /or0, : : Re 1ondent. : ---------------------------------------------------------------X MEMORANDUM IN OPPOSITION TO AIRBNB, INC.S MOTION TO QUASH AND IN SUPPORT OF THE ATTORNEY GENERALS CROSS-MOTION TO COMPEL RESPONSES TO AN INVESTIGATORY SUBPOENA &RIC '. (C)N&I*&R+AN Attorne% "enera# o, t-e (tate o, Ne. /or0 Attorne% ,or Petitioner 120 Broad.a% Ne. /or0, N/ 10271 32124 516-6533 7, Co!n e#: 8ar#a ". (an9-e: &xe9!ti;e *e1!t% Attorne% "enera# &9ono<i9 J! ti9e *i;i ion Randa## =ox B!rea! C-ie, 'ax1a%er Prote9tion B!rea! C#ar0 R! e## A i tant Attorne% "enera# Internet B!rea!

'-e (tate o, Ne. /or0, >% Attorne% "enera# &ri9 '. (9-neider<an 3?N/A"@4, re 1e9t,!##% !><it t-i <e<orand!< o, #a. in o11o ition to AirBn> In9.A 3?AirBn>@4 <otion to B!a - andCor <odi,% an in;e tigator% t-ird-1art% !>1oena er;ed >% N/A", and in !11ort o, t-e N/A"A 9ro -<otion 1!r !ant to CPDR E 23063>4, ,or an order 9o<1e##ing AirBn> to 9o<1#% .it- t-e N/A"A in;e tigator% !>1oena i<<ediate#% !1on er;i9e o, noti9e o, entr% o, t-i Co!rtA order, or on !9- ot-er date a t-e Co!rt <a% dire9t. PRELIMINARY STATEMENT AirBn> readi#% ad<it t-at t-e data !>1oenaed >% t-e N/A" .i## identi,% i##ega# a9ti;it%, %et AirBn> ta0e t-e extre<e te1 o, ee0ing to B!a - .-at i a narro.#%-tai#ored #a. en,or9e<ent !>1oena i !ed to t-e on#% o!r9e o, t-at in,or<ation. AirBn> doe not >egin to <eet t-e -ea;% >!rden ne9e ar% to B!a - a !>1oena i !ed 1!r !ant to t-e N/A"A #a. en,or9e<ent 1o.er . A !9-, it <otion -o!#d >e denied and it -o!#d >e 9o<1e##ed

i<<ediate#% to 1rod!9e t-e reB!e ted data. AirBn> o.n a .e> ite t-at a##o. o.ner C#e ee o, a1art<ent 3?)o t @4 to rent t-eir -o<e to to!ri t and ot-er tran ient 3?"!e t @4 on a -ort-ter< >a i ,or a ,ee. It i i##ega# ,or re ident o, C#a A >!i#ding to rent o!t t-eir a1art<ent ,or an% 1eriod o, ti<e #e t-an 30 da% !n#e t-e% are a# o 1re ent in t-e a1art<ent. Da. en,or9e<ent -a re9ei;ed n!<ero! 9o<1#aint and t-e N/A" -a 9ond!9ted it o.n in;e tigation de<on trating t-at <an% )o t are renting t-eir a1art<ent i##ega##%. In addition, t-e N/A"A in;e tigation -a re;ea#ed t-at an extre<e#% <a## 1er9entage o, indi;id!a# )o t a9t!a##% 9o##e9t t-e reB!ired -ote# o99!1an9% tax on >e-a#, o, t-e "!e t .-o ta% in t-eir a1art<ent .

AirBn> a90no.#edge t-at <an% o, it ! er are ;io#ating t-e #a.. It -a

tated 1!>#i9a##%

t-at it .ant to .or0 .it- #a. en,or9e<ent to ?re<o;e >ad a9tor @ and t-at ?i##ega# -ote# o1erator ... -a;e no 1#a9e on AirBn>.@ '-e% -a;e a# o ad<itted t-at ?it <a0e en e ,or o!r

9o<<!nit% to 1a% -ote# o99!1an9% tax.@ And %et AirBn> -a >een .-o##% !n9oo1erati;e, ee0ing to in tead to te1 into t-e -oe o, #a. en,or9e<ent and di9tate t-e 9o1e o, t-e N/A"A in;e tigation. 'o ,!##% !n9o;er t-e 9o1e o, t-e i##ega# a9ti;it%, t-e N/A" er;ed an in;e tigator%, t-ird1art% !>1oena on AirBn> reB!e ting a #i t o, )o t in Ne. /or0, t-e gro re;en!e generated

,ro< t-e -ort-ter< renta# o, t-o e a1art<ent , and re#ated in,or<ation. '-e !>1oena .a 1!r1o e,!##% narro.ed to ee0 in,or<ation on#% a>o!t )o t t-at .o!#d >e ;io#ating t-e #a.. '-e N/A" i entit#ed to a 1re !<1tion o, good ,ait- in t-e i !an9e o, !>1oena and re9i1ient o, !>1oena <! t 9o<1#% !n#e t-e !>1oena ee0 do9!<ent t-at are ?!tter#% irre#e;ant@ to t-e inB!ir%. "i;en t-e e;iden9e o, n!<ero! ;io#ation o, #a. >% t-e AirBn> )o t and t-e N/A"A 1!>#i9 1!r1o e o, en,or9ing t-e #a. , N/A" ea i#% <eet t-i t-re -o#d. In a de 1erate atte<1t to 9o<1#i9ate .-at i a i<1#e <atter, AirBn> arg!e t-at t-e !>1oena -o!#d >e B!a -ed >e9a! e t-e Ne. /or0 (tate #a. regarding -ort-ter< renta# and -ote# o99!1an9% tax are ?!n9on tit!tiona##% ;ag!e.@ B!t, >e9a! e t-e N/A" i not ee0ing to en,or9e t-e e #a. again t AirBn> it -a a> o#!te#% no tanding to o>Fe9t to t-e #a. . +oreo;er, t-e 9on tit!tiona#it% o, t-e e #a. i not ri1e ,or deter<ination !nti# t-e% are a9t!a##% a11#ied. C!rrent#%, no 9-arge -a;e >een >ro!g-t and t-ere i no ,a9t!a# re9ord ,or t-e Co!rt to <a0e t-e ne9e ar% ?a -a11#ied@ deter<ination. +oreo;er, t-e N/A"A 1o.er o, en,or9e<ent and 1otentia# #ega# 9#ai< extend beyond t-e :oning and tax #a. and a,,ord t-e N/A" additiona# >a e ,or t-e 1rod!9tion o, t-e in,or<ation. 3

AirBn> a# o arg!e t-at t-e !>1oena i o;er#% >road and !nd!#% >!rden o<e. )o.e;er, it o,,er no 1roo, de<on trating -o. it .o!#d >e !nd!#% >!rden o<e. '-e <aForit% o, in,or<ation reB!e ted >% t-e N/A", in9#!ding )o t na<e, addre o, a99o<<odation, and on AirBn>.9o<. AirBn> ta%ed at t-e a1art<ent

date C9o t o, renta# i 9o##e9ted a 1art o, t-e e#e9troni9 >oo0ing 1ro9e a# o arg!e t-at it doe not -a;e in,or<ation a to .-et-er t-e )o t

d!ring t-e renta# 1eriodG %et it 1re;io! #% o,,ered to 1ro;ide t-e N/A" .it- t-e to1 50 )o t >% gro re;en!e, .-ere t-e )o t did not ta% at t-e a1art<ent. Indeed, .-en a )o t 1o t -i or

-er a1art<ent on t-e .e> ite, -e or -e i reB!ired to indi9ate .-et-er t-e% are renting t-e ?entire a1art<ent@ or a ? -ared roo<.@ =ina##%, AirBn> arg!e t-at t-e !>1oena ee0 9on,identia# and 1ri;ate in,or<ation, in9#!ding tax ret!rn . AirBn> doe not 9ite to an% a11#i9a>#e #a. t-at .o!#d 1rote9t t-e in,or<ation o!g-t, and 9o<1#ete#% ignore t-at t-e !>1oena i reB!e ting business transaction in,or<ation, !9- a t-e n!<>er o, ti<e t-e )o t rented -i or -er a1art<ent and t-e gro re;en!e deri;ed. $-i#e t-e !>1oena reB!e t tax-re#ated 9o<<!ni9ation , it on#% ee0 in,or<ation regarding .-at AirBn> di 9#o ed to t-e )o t 9on9erning t-e t%1e o, taxe t-e% -a;e to 1a%, and re#ated 9orre 1onden9e. '-e N/A" doe not ee0, and t-e !>1oena -o!#d not >e inter1reted a ee0ing, tax ret!rn ,or )o t .

'-e on#% .a% t-at t-e N/A" 9an in;e tigate t-e i##ega# a9ti;itie o, t-e )o t i ,or AirBn> to 1ro;ide t-e !>1oenaed in,or<ation. AirBn> -o!#d not >e a##o.ed to e,,e9ti;e#% 9#o e an in;e tigation >e,ore it e;en tart , or ot-er.i e -ie#d it )o t ,ro< i##ega# 9ond!9t. A et

,ort- -erein, t-i Co!rt -o!#d den% AirBn>A <otion to B!a - t-e !>1oena, or an% atte<1t to <odi,% it, and grant t-e N/A"A 9ro -<otion to 9o<1e#, a .e## a 9o t in9!rred in 9onne9tion .it- t-i <otion. 5

FACTS A. AirBn>A B! ine o, Di ting A1art<ent ,or Rent on t-e Internet

AirBn> o.n a .e> ite #o9ated at H....air>n>.9o<I 3?AirBn>.9o<@4, .-i9- 1ro;ide an on#ine 1#at,or< ,or indi;id!a# , re,erred to a ?)o t ,@ to rent t-eir a1art<ent to to!ri t and ot-er t-ird 1art% tran ient . In Ne. /or0 Cit% a#one, AirBn> -a <ore t-an 25,000 #i ting ,ro< o;er 15,000 )o t . (ee A,,ida;it o, Jane a I1, N/A" In;e tigator, dated No;e<>er 7, 2013 3?I1 A,,ida;it@4 K 6 3air>n>.9o<C#o9ation CNe.-/or04. Brian C-e 0%, t-e ,o!nder and C&7 o, AirBn>.9o<, i B!oted a &x. A. 'o #i t on AirBn>.9o<, a )o t <! t 9reate an a99o!nt and 1ro,i#e, e#e9t t-e 1ro1ert% t%1e 3e.g., ?A1art<ent,@ ?)o! e,@ ?Bed M Brea0,a t@4, t-e roo< t%1e 3e.g., ?&ntire )o<eCA1t.@ or ?(-ared Roo<@4, t-e n!<>er o, 1eo1#e it a99o<<odate 31 to 16N4 and t-e -o t 9it%. Be#o. i a a<1#e 9reen -ot ,ro< AirBn>.9o< 1re ented to 1ro1o ed )o t : a%ing t-e a;erage Ne. /or0 Cit% )o t gro e L21,000 a %ear. Id.

Id. K 10. '-e )o t 9o<1#ete t-e #i ting 1ro,i#e >% deter<ining a;ai#a>i#it% and 1ri9e, adding a de 9ri1tion o, t-e renta# 1a9e, 1o ting 1-oto , and 1ro;iding detai# , !9- a t-e n!<>er o, >edroo< , >ed , a99e i>#e >at-roo< , a<enitie , and an addre . Id. 'o ,ind a renta# 1ro1ert% on AirBn>.9o<, a 1ro 1e9ti;e "!e t <! t ear9- t-e )o t #i ting >% 1ro;iding a de tination, 9-e90-in and 9-e90-o!t date , and t-e n!<>er o, g!e t . Id. K 9. A,ter t-e initia# ear9-, .-ere a #i t o, a;ai#a>#e renta# a11ear , t-e "!e t 9an t-en re,ine t-e ear9- >% t-e a,ore<entioned 1ro1ert% and roo< t%1e, i:e 3i.e., <ini<!< n!<>er o, >edroo< , >at-roo< , and >ed 4, neig->or-ood, a<enitie , and )o t #ang!age 1o0en. Id. Be#o. i a a<1#e 9reen -ot ,ro< AirBn>.9o< a,ter t-e "!e t 9ond!9t a ear9-:

Id. )o t are 1ro;ided 9#ear noti9e t-at in,or<ation a>o!t t-e< .i## >e 1ro;ided in re 1on e to a go;ern<ent !>1oena. '-e 1ri;a9% 1o#i9% on AirBn>.9o< 1ro;ide : Co<1#ian9e .it- Da. and Da. &n,or9e<entG "!arantee Progra< Air>n> 9oo1erate .it- go;ern<ent and #a. en,or9e<ent o,,i9ia# and 1ri;ate 1artie to en,or9e and 9o<1#% .it- t-e #a.. $e .i## di 9#o e an% in,or<ation a>o!t %o! to go;ern<ent or #a. en,or9e<ent o,,i9ia# or 1ri;ate 1artie a .e, in o!r o#e di 9retion, >e#ie;e ne9e ar% or a11ro1riate to re 1ond to 9#ai< and #ega# 1ro9e 3in9#!ding >!t not #i<ited to !>1oena 4, to 1rote9t t-e 1ro1ert% and rig-t o, Air>n> or a t-ird 1art%, to 1rote9t t-e a,et% o, t-e 1!>#i9 or an% 1er on, or to 1re;ent or to1 a9ti;it% .e <a% 9on ider to >e, or to 1o e a ri 0 o, >eing, an% i##ega#, !net-i9a# or #ega##% a9tiona>#e a9ti;it%. 7

$e .i## di 9#o e an% in,or<ation a>o!t %o! to go;ern<ent or #a. en,or9e<ent o,,i9ia# and to o!r in !ran9e er;i9e 1ro;ider a .e, in o!r o#e di 9retion, >e#ie;e ne9e ar% or a11ro1riate to ad<ini ter o!r Air>n> )o t "!arantee ....air>n>.9o<Cter< , to 1rote9t t-e 1ro1ert% and rig-t o, Air>n> or a t-ird 1art%, to 1rote9t t-e a,et% o, t-e 1!>#i9 or an% 1er on, or to 1re;ent or to1 a9ti;it% .e <a% 9on ider to >e, or to 1o e a ri 0 o, >eing, an% i##ega#, !net-i9a# or #ega##% a9tiona>#e a9ti;it%. R! e## A,,. K 20 and &x. 10 3Air>n> Pri;a9% Po#i9% at -tt1 :CC....air>n>.9o<C-o<eCter< 3#a t !1dated A!g! t 15, 201144. B. '-e (-ort-'er< Ooning Da.

*!ring t-e 1a t de9ade, a re identia# a1art<ent >!i#ding -a;e >een in9rea ing#% !ti#i:ed ,or -ort-ter< o99!1an9% >% to!ri t and ot-er tran ient o99!1ant , #egi #ator and 9it% and tate agen9ie re9ei;ed gro.ing n!<>er o, 9o<1#aint ,ro< t-eir 9on tit!ent . =or exa<1#e, >et.een 2006 and 2012, t-e +a%orA 7,,i9e o, (1e9ia# &n,or9e<ent re1orted o;er 2,500 9o<1#aint to it ?311@ #ine. (ee R! e## A,,., &x. 1 3A,,ida;it o, 8at-#een +9"ee, *ire9tor o, t-e +a%orA 7,,i9e o, (1e9ia# &n,or9e<ent, KK 11-12, 15 3?+9"ee A,,.@44. +an% o, t-e 9o<1#aint ari e in >!i#ding t-at are in e en9e ?i##ega# -ote# ,@ i.e., >!i#ding .-ere <o t o, t-e !nit are rented to tran ient g!e t . '-e 9o<1#aint re,#e9t a ;ariet% o, B!a#it% o, #i,e, a,et% and e9!rit% 1ro>#e< ,or t-e 1er<anent re ident o, t-e e >!i#ding , in9#!ding: o;er9ro.ding o, roo< .it- !1 to t.e#;e >!n0->ed in a roo< 3+9"ee A,,., K 134G 1!dd#e o, ;o<it and >aggage tre.n in -a##.a% 3Id. K 124G in9rea ed 1e t in,e tationG #ate nig-t 1artie in9#!ding ?;i itor @ >#a ting #ate-nig-t <! i9 3Id.G I1. A,,. K 5 and &x. B4G and 6

arg!<ent >et.een a rea# e tate agent and g!e t in (t!% 'o.n. 3I1. A,,. K 5 and &x. B4. Pn#i0e tr!e -ote# , a1art<ent >!i#ding do not -a;e t-e e9!rit% reB!ired to addre 9ond!9t.1 In addition, t-e 9o<1#aint re,#e9t #and#ord and o1erator o, t-e e i##ega# -ote# 1re !ring t-e 1er<anent re ident to ;a9ate t-eir a1art<ent o t-e% 9an 1!r !e t-e <ore #!9rati;e tran ient t-i

<ar0et. +9"ee A,,. K 12. '-ere are re1ort o, #and#ord .it--o#ding -eat and ot-er >a i9 er;i9e , ;er>a# -ara <ent and i##ega# e;i9tion. Id. =a9ing t-e e gro.ing 9on9ern , in 2010, t-e Ne. /or0 (tate Degi #at!re ena9ted C-a1ter 225 o, t-e Da. o, Ne. /or0 (tate o, 2010 3?C-a1ter 225@4. '-e #a. a11#ie to ?C#a A@ <!#ti1#e d.e##ing , a de,ined !nder t-e Ne. /or0 +!#ti1#e *.e##ing Da. 3?+*D@4 and t-e Ne. 1 Co!rt -a;e a90no.#edged t-e a,et% and e9!rit% 1ro>#e< a o9iated .it- -ort-ter< renta# in 1ro9eeding to

re train a1art<ent o.ner in Ne. /or0 Cit% ,ro< renting o!t t-eir a1art<ent . =or exa<1#e, in '-e Cit% o, Ne. /or0 ;. (<art A1art<ent DDC, Ro>ert 8./.C-an, 'o -i In9, No. 502255C12 3(!1. Ct. N./. Cnt%, =e>. 13, 20134, t-e 9o!rt .rote: '-e Ne. /or0 Cit% =ire and B!i#ding Code reB!ire tran ient re iden9e to o> er;e igni,i9ant#% -ig-er ,ire a,et% tandard t-an non-tran ient re iden9e , ... t-e o99!1ant o, t-e ,or<er are #e ,a<i#iar t-an t-e #atter .it- t-eir !rro!nding , .it- ,ire e;a9!ation 1ro9ed!re , et9. Id. at 3. A 9o1% o, t-i de9i ion i atta9-ed -ereto a &x-i>it A. (i<i#ar#%, in Board o, +anager o, t-e (o!t- (tar ;. (o1-ie "ri -ano;a, No. 159101C2012 3(!1. Ct. N./. Cnt%, =e>. 7, 20134, t-e 9o!rt i !ed a te<1orar% re training order 1ro-i>iting t-e de,endant ,ro< renting o!t -er a1art<ent a<id 9on9ern o, a,et% and e9!rit%: t-e !nit o.ner .ere 9on9erned a>o!t t-e ri 0 to t-eir ,a<i#ie A a,et% and e9!rit% 1o ed >% #arge n!<>er o, tranger 3none o, .-o< -ad a >a90gro!nd 9-e904 1a ing t-ro!g- t-e Pnit and t-e Condo<ini!<A #o>>% and -a##.a% on a ro!tine >a i . '-e Ne. /or0 tate #egi #at!re e;en #a>e# t-e 1ra9ti9e o, ,!rni -ing -ortter< renta# in a re identia# >! ine a ?,!nda<enta##% !n a,e@ and ?dangero! @ >e9a! e o, t-e in9rea ed ri 0 o, ,ire 9a! e >% t-e 1re en9e o, tran ient in !9>!i#dingQ. t-e ongoing n!i an9e and inter,eren9e .it- t-e !nit o.nerA ! e and enFo%<ent o, t-eir 1ro1ert% 9a! ed >% de,endantA i##ega# roo<ing -o! e >! ine .a !,,i9ient to e ta>#i - t-e exi ten9e o, irre1ara>#e -ar<. Id., 1. 3. A 9o1% o, t-i de9i ion i a# o atta9-ed -ereto a &x-i>it A.

/or0 Cit% )o! ing +aintenan9e Code 3?)+C@4 39o##e9ti;e#%, t-e ?(-ort-'er< Ooning Da. @4 and tate :
A 9#a A <!#ti1#e d.e##ing -a## on#% >e ! ed ,or 1er<anent re iden9e 1!r1o e . =or t-e 1!r1o e o, t-i de,inition, ?1er<anent re iden9e 1!r1o e @ -a## 9on i t o, o99!1an9% o, a d.e##ing !nit >% t-e a<e nat!ra# 1er on or ,a<i#% ,or t-irt% 9on e9!ti;e da% or <ore.

Ne. /or0 +!#ti1#e *.e##ing Da., Art. 1, E 5.a.63a4G Ne. /or0 Cit% Ad<ini trati;e Code, tit. 27, C-. 2, (!>9-a1. 1, Art. 1 E 27-2005.63a4 319604. 2 '-! , C#a A d.e##ing <a% on#% -o! e 1er<anent re ident R and to >e a 1er<anent re ident one -a to re ide in t-e !nit ,or 30 da% or <ore. '-ere i an ex9e1tion a##o.ing o99!1an9% ,or ,e.er t-an 30 9on e9!ti;e da% .-en t-e 1er<anent re ident i 1re ent and -a -o! e g!e t or #a.,!# >oarder , roo<er or #odger . (e9tion 305 o, t-e +*D 1ro;ide t-at SQe;er% 1er on .-o -a## ;io#ate or a i t in t-e ;io#ation o, an% 1ro;i ion o, t-i 9-a1ter To, t-e +*DU -a## >e g!i#t% o, a <i de<eanorQ.@ Id. at E 305. '-e tated 1!r1o e o, C-a1ter 225 .ere to: 314 1re;ent >!i#ding o.ner ,ro< 9ir9!<;enting t-e tri9t ,ire a,et% tandard a11#i9a>#e to -ote# G3 324 1re;ent ?!n,air 9o<1etition to #egiti<ate -ote# t-at -a;e <ade !> tantia# in;e t<ent to 9o<1#%@ .it- >!i#ding 9ode G 334 1rote9t t-e rig-t o, 1er<anent o99!1ant .-o ?<! t end!re t-e in9on;enien9e o, -ote# o99!1an9% in t-eir >!i#ding G@ and 354 1re er;e t-e !11#% o, a,,orda>#e 1er<anent -o! ing. (ee

2 '-e Ne. /or0 Cit% &n;iron<enta# Contro# Board r!#ed t-at -ort-ter< o99!1an9% in e;en one a1art<ent in a C#a A re identia# >!i#ding i a ;io#ation o, (e9tion 26-116.3.2 o, t-e B!i#ding Code. N/C ;. 365 $e t 51 t (treet A o9iate DP, &CB A11ea# No. 1200295 3J!#% 26, 20124.

3A de 9ri1tion o, t-e rea on t-at >!i#ding :oned ,or tran ient -o! ing -a;e tri9ter >!i#ding and ,ire 9ode i

1ro;ided in t-e A,,ida;it o, Ja<e Co#gate, *e1art<ent o, B!i#ding A i tant Co<<i ioner o, 'e9-ni9a# A,,air and Code *e;e#o1<ent ,or t-e Ne. /or0 Cit% *e1art<ent o, B!i#ding , KK 5-11, and in t-e A,,ida;it o, '-o<a Jen en, C-ie, o, =ire Pre;ention ,or t-e Ne. /or0 Cit% =ire *e1art<ent !11orting t-e Cit% o, Ne. /or0A a9tion again t a -ort-ter< renting 9o<1an% in '-e Cit% o, Ne. /or0 ;. (<art A1art<ent DDC, Ro>ert 8./.C-an, 'o -i In9, No. 502255C12 3(!1. Ct. N./. Cnt%, =e>. 13, 20134, .-i9- are atta9-ed to t-e R! e## A,,. a &x- . 2 and 3 re 1e9ti;e#%.

10

Ne. /or0 (tate A e<>#% +e<orand!< in (!11ort o, Degi #ation 3(. 6673-B, 233rd Deg. 3N./. 2010 3(1on orA +e<o4 Bi## No. A100064. C. A1art<ent B!i#ding A Contra9t!a# Pro-i>ition on (-ort-'er< 799!1an9% i<i#ar to t-o e !nder1inning t-e (-ort-'er< Ooning

7!t o, a,et% and e9!rit% 9on9ern

Da. , <an% a1art<ent >!i#ding 9ontra9t!a##% 1ro-i>it -ort-ter< renta# >% a1art<ent-!nit o.ner t-ro!g- >%-#a. and #ea e ter< . $it- t-e gro.t- o, AirBn>.9o< and re#ated .e> ite , t-ere -a >een an in9rea e in #ega# a9tion to enFoin t-e e 1ro-i>ited renta# >% >!i#ding <anager . (ee, e.g., Board o, +anager o, t-e (o!t- (tar ;. (o1-ie "ri -ano;a, No. 159101C2012 3(!1. Ct. N./. Cnt% =e>. 7, 201343P#ainti,, >!i#ding .on te<1orar% re training order re training t-e tenant ,ro< renting -er a1art<ent on a -ort-ter< >a i >e9a! e it ;io#ated t-e >%-#a. ex1re #% #i<iting non-o.ner o99!1an9% o, a !nit to #egiti<ate ,a<i#% <e<>er , g!e t , and e<1#o%ee 4G 256 &a t 10t- (treet N/ DDC ;. Ni9o#e &#i:a>et- Bea##, No. 156392C2013 3(!1. Ct. N./. Cnt% (e1t. 13, 20134 3P#ainti,, >!i#ding ,i#ed ,or an inF!n9tion to enFoin t-e tenant ,ro< ! ing t-e a1art<ent a a -ote# >% #i ting it ,or rent on Air>n>.9o<, a,ter re9ei;ing <!#ti1#e 9o<1#aint ,ro< tenant a>o!t t-e ,#o. o, i<1ro1er re ident 4G Board o, +anager o, "ra<<er9% Condo<ini!< ;. B#odget, No. 150977C2013 3(!1. Ct. N./. Cnt% Jan. 23, 20134 3P#ainti,, >!i#ding, 9iting a,et% 9on9ern , ,i#ed ,or a 1er<anent inF!n9tion to 1re;ent de,endant indi;id!a# tenant ,ro< 9ontin!ing to rent o!t a !nit in t-e 9ondo<ini!< a1art<ent a a ;a9ation renta# ,or 1eriod o, #e t-an t-irt% da% in ;io#ation o, t-e 9ondo<ini!<A >%-#a. .4G 7#< tead Condo ;. (a<!e# et a#., No. 153779C2013 3(!1. Ct. N./. Cnt% A1r. 25, 20134 3P#ainti,, >!i#ding ,i#ed to enFoin de,endant tenant ,ro< renting o!t t-eir a1art<ent !nit to tran ient g!e t ,or 1eriod -orter t-an t-irt% da% in ;io#ation o, 9ondo<ini!< >%-#a. 4.5

5 '-e e 9o<1#aint are atta9-ed -ereto a &x-i>it B.

11

*.

'-e )ote# 799!1an9% 'ax Da.

In Ne. /or0 Cit%, -ote# roo< are !>Fe9t to a 15.75V tax. 5 A -ote# <a% in9#!de an a1art<ent, >oarding-o! e, >!nga#o., or 9#!>, .-et-er or not <ea# are er;ed. R! e## A,,., &x. 5 3-tt1:CC....n%9.go;C-t<#Cdo,C-t<#C>! ine C-ote#. -t<#4G ee a# o &x. 5 3-tt1:CC....n%9.go;C-t<#Cdo,Cdo.n#oad C1d,C,aBC-ote#Wo99!!1an9%Wtax.1d,4 and &x. 6 3N/C *e1art<ent o, =inan9e +e<orand!< dated A!g! t 23, 2011, .-ere ?t-e ter< -ote# in9#!de Q >!nga#o. , ,!rni -ed a1art<ent and ot-er ,!rni -ed #i;ing !nit intended ,or ing#e ,a<i#% ! e 3regard#e o, .-et-er renta# are ,or one .ee0 or <ore, and regard#e o, .-et-er <ea# , <aid

er;i9e or ot-er 9o<<on -ote# er;i9e are 1ro;ided44. '-e #a. ,!rt-er tate t-at ?t-e o1eratorQ -a## >e 1er ona##% #ia>#e ,or t-e 1ortion o, t-e tax 9o##e9ted or reB!ired to >e 9o##e9tedQ .@ N/C Ad<in. Code E 11-25023,4324. An ?o1erator@ i ?TaUn% 1er on o1erating a -ote# in t-e 9it% o, Ne. /or0, in9#!ding >!t not #i<ited to, t-e o.ner or 1ro1rietor o, !91re<i e , #e ee, !>#e e, <ortgagee in 1o e ion, #i9en ee or an% ot-er 1er on ot-er.i e o1erating !9- -ote#.@ Id. at E 11-2501324. '-e o1erator <! t 9o##e9t t-e tax ,or a## renta# o, a1art<ent or roo< , ex9e1t in t-e 9a e o,: 314 renta# o, on#% one roo< in an o.ner o99!1ied -o<eG 324 renta# ,or #e t-an 15 da% , or ,or ,e.er t-an t-ree o99a ion d!ring t-e %ear 3,or an% n!<>er o, tota# da% 4G 334 ?#ong-ter< #ea e @, i.e. renta# ,or a 9ontin!o! 1eriod o, 160 9on e9!ti;e da% G and 354 renta# o, ?>!nga#o. @ outside the limits of New York City.6 R! e## A,,., &x. 6 3N/C *e1art<ent o, 5 '-e e rate are 9o<1ri ed o, t-e ,o##o.ing: 5.675V 3Ne. /or0 Cit% )ote# Roo< 799!1an9% 'ax, N/C Ad<in.

Code E 11-2502 320124G 5.67V 3Ne. /or0 Cit% (a#e 'ax, N/C Ad<in. Code E 11-200i 320124G and 5.00V 3Ne. /or0 (tate (a#e 'ax, N./. 'ax Da. E 1#053e4320124. '-e Ne. /or0 (tate )ote# Pnit =ee a# o a11#ie a L1.50 1er !nit 1er da% ,ee. N./. 'ax Da. E 1105 320054. 6A ?>!nga#o.@ i a ?,!rni -ed #i;ing !nit, de igned ,or ing#e-,a<i#% o99!1an9%.@ R! e## A,,., &x. 5 3-tt1:CC....n%9.go;C-t<#Cdo,Cdo.n#oad C1d,C,aBC-ote#Wo99!!1an9%Wtax.1d,4.

12

=inan9e +e<orand!< dated A!g! t 23, 2011, at 24. In addition to t-e d!t% to 9o##e9t and re<it taxe and ,ee , e;er% o1erator o, a -ote# <! t ,i#e a 9erti,i9ate o, regi tration a11#i9ation .it- t-e Ne. /or0 Cit% *e1art<ent o, =inan9e and o>tain a 9erti,i9ate o, a!t-orit% e<1o.ering t-e o1erator to 9o##e9t t-e -ote# roo< o99!1an9% tax (ee A,,ir<ation o, Randa## =ox, B!rea! C-ie, o, t-e 'ax1a%er Prote9tion B!rea!, K 2, 3?=ox A,,.@4.

&.

'-e Ne. /or0 (tate Attorne% "enera#A In;e tigation Re;ea# Co<1e##ing &;iden9e t-at AirBn> )o t Are Jio#ating Jario! Da. 7

A<id a gro.ing 9-or! o, 9o<1#aint ,ro< #egi #ator , re1ort o, i##ega#it% in ne. 1a1er and e# e.-ere, and in re 1on e to 9o<1#aint ,i#ed .it- t-e N/A" and t-e +a%orA 7,,i9e o, (1e9ia# &n,or9e<ent, t-e N/A" >egan in;e tigating AirBn> and ot-er -ort-ter< renta# .e> ite ,or t-eir )o t A ;io#ation o, #a.. 1. AirBn> )o t Jio#ate t-e (-ort-'er< Ooning Da. .

'-e N/A" 9ond!9ted a n!<>er o, ear9-e on AirBn>.9o< .-i9- re;ea#ed t-at )o t are ;io#ating t-e (-ort-'er< Ooning Da. . =or exa<1#e, t-e re !#t o, a ing#e ear9- ee0ing non- -ared a1art<ent >et.een *e9e<>er 2nd and *e9e<>er 7, 2013 in Ne. /or0 Cit%, re !#ted in o;er 1000 !nit . I1 A,,. K 9. 7n t-eir ,a9e, t-e e #i ting ;io#ate t-e (-ort-'er< Ooning Da. >e9a! e t-e% are renta# ,or !nder 30 da% in Ne. /or0 Cit% in non- -ared 1a9e .
7Ne. 1a1er arti9#e re1ort t-at ot-er F!ri di9tion are in;e tigating AirBn> and it )o t a .e##. See, e.g., X!e>e9 3(ee -tt1:CC....t-eg#o>eand<ai#.9o<C#i,eCtra;e#CB!e>e9-9ra90 -do.n-on-air>n>Carti9#e12162965C4G Ca#i,ornia 3-tt1:CC.... ,gate.9o<Crea#e tateCarti9#eC(-ort-ter<-renta# -di r!1ting-(=--o! ing-<ar0et3622632.1-14G Ari:ona and Do!i iana 3-tt1:CCa>9ne. .go.9o<CB! ine C! er -air>n>->rea0ing-#a.-9riti9 9#ai<C tor%YidZ201561634G Pari 3-tt1:CC....n%ti<e .9o<C2010C07C07C>! ine Cg#o>a#C07rent.-t<#YWrZ04G A< terda< 3-tt1:CC....it.or#d.9o<Cit-<anage<entC350255Ca< terda<-! ing-air>n>-#i ting- er;i9e-identi,%i##ega#-renta# 4 and (1ain 3-tt1:CC....9%9#e,ie ta.9o<C<!#ti<ediaCarti9#eCi -air>n>-#ega#.-t<.4

13

Pn,ort!nate#%, t-e ear9- re !#t did not 1ro;ide !,,i9ient in,or<ation to a##o. t-e N/A" to identi,% t-e )o t, >% na<e, addre andCor t-e n!<>er o, ti<e t-e% rent t-eir a1art<ent in a %ear.

Indeed, a> ent a !>1oena to AirBn>, t-e N/A" .o!#d -a;e to enter into !nder9o;er tran a9tion .it- ea9- )o t in order to <ere#% identi,% t-e<. In ,a9t, AirBn> ,ree#% ad<it t-e% -a;e )o t t-at ;io#ate t-e (-ort-'er< Ooning Da.. Id. &x. & 3?Bad a9tor #i0e i##ega# -ote# o1erator and #!<#ord arenAt 1art o, o!r ;i ion and -a;e no 1#a9e on AirBn> and .e -o1e .e 9an .or0 .it- (tate #eader to .eed o!t t-e e indi;id!a# .@4. Indeed, one t-ird-1art% e ti<ated t-at o;er 50V o, t-e #i ting on AirBn>.9o< ;io#ate t-e (-ort'er< Ooning Da. . R! e## A,,., &x. 7 3Airbnbs Growing Pains irrored in New York City,

!here "alf its #istings are $llegal %entals, (8I='.C7+, at -tt1:CC 0i,t.9o<C2013C01C07Cair>n> gro.ing-1ain -<irrored-in-ne.-%or0-9it%-.-ere--a#,-it -#i ting -are-i##ega#-renta# C 3Jan. 7, 201344. )o.e;er, t-e ,!## extent o, )o t A i##ega# a9ti;itie 9annot >e di 9erned !nti# t-e reB!e ted data i 1rod!9ed and ana#%:ed. 2. AirBn> )o t *o Not Pa% t-e )ote# 799!1an9% 'ax

'o deter<ine t-e extent o, )o t A 1a%<ent o, )7', t-e N/A" re;ie.ed t-e N/C *e1art<ent o, =inan9e -ote# 9erti,i9ate o, regi tration and di 9o;ered ,e.er t-an 1300 entitie t-at 1aid )7' in 2012. =ox A,,. K 5. +oreo;er, t-e ;a t <aForit% .ere .e##-0no.n -ote# 9o<1anie , #i0e )i#ton and )%att, t-at 9annot >e ex1e9ted to -a;e ! ed AirBn>A er;i9e . Id. K 6. =!rt-er<ore, on#% 91 o, t-e regi trant #i ted t-e< e#;e a ?indi;id!a# ,@ and on#% 155 entrie de 9ri>ed t-eir 1ro1ertie a ?A1art<ent .@ Id. KK 6, 7. Be9a! e AirBn> )o t are reB!ired to ,i#e a 9erti,i9ate o, regi tration in order to 1a% t-e )7', e;en t-e <o t 9!r or% re;ie. o, t-e 9erti,i9ate o, regi tration re;ea# t-at t-e ;a t <aForit% o, t-e o;er 15,000 AirBnB )o t in Ne. /or0 Cit% are not 1a%ing )7'. I, AirBn> )o t .ere 1a%ing t-e )7', t-ere .o!#d >e .e## in 15

ex9e

o, 91 regi tration to indi;id!a# , and <ore t-an 155 de 9ri>ing t-eir 1ro1ertie a

?A1art<ent .@6 =. '-e N/A" In,or<ation ReB!e t to AirBn>

"i;en t-at t-e identit% o, t-e )o t i not readi#% a;ai#a>#e ,ro< t-e .e> ite AirBn>.9o<, N/A" o!g-t t-e in,or<ation ,ro< AirBn>.9 1. '-e A!g! t 19, 2013 Detter ReB!e t

7n or aro!nd A!g! t 12, 2013, t-e N/A" 9onta9ted AirBn> and reB!e ted t-at t-e 9o<1an% a99e1t er;i9e o, a t-ird-1art% in;e tigator% !>1oena d!9e te9!<. A,ter o<e di 9! ion .it- AirBn>A !> eB!ent#%--ired o!t ide 9o!n e#, AirBn> reB!e ted, and t-e N/A" agreed to er;e, an in,or<ation reB!e t ;ia #etter in #ie! o, a ,or<a# !>1oena. AirBn> agreed it .o!#d #ater a99e1t er;i9e o, a !>1oena i, t-e 1artie .ere !na>#e to agree on t-e 1rod!9tion o, in,or<ation. R! e## A,,. KK 11, 12. =!rt-er<ore, t-e 1artie agreed t-at i, t-e N/A" .a reB!ired to er;e a !>1oena ,or 1!r1o e o, en,or9e<ent, it .o!#d date >a90 to A!g! t 19, 2013, t-e date o, t-e #etter. Id. 2. *i 9! ion Regarding Co<1#ian9e >% AirBn> .it- t-e A!g! t 19t- Detter

Bet.een A!g! t 20, 2013 and 79to>er 3, 2013, t-e N/A" engaged in di 9! ion .itAirBn> regarding t-e 1rod!9tion o, t-e in,or<ation o!g-t >% it #etter. '-e e di 9! ion in9#!ded e;era# in-1er on <eeting .it- AirBn> and 9o!n e#, a .e## a e;era# te#e1-one 9a## .

Id. K 13. *!ring t-e e <eeting , AirBn> indi9ated t-at it .o!#d not 1rod!9e t-e in,or<ation o!g-t >% N/A" >e9a! e it .o!#d ?-!rt t-eir >! ine and !1 et t-eir 9! to<er .@ Id. It ne;er
6 In a >#og 1o t dated 79to>er 3, 2013, t-e o.ner and ,o!nder o, Air>n>.9o<, Brian C-e 0%, ad<itted t-at it )o t -o!#d 1a% )7': 7!r -o t are not -ote# , >!t .e >e#ie;e t-at it <a0e en e ,or o!r 9o<<!nit% to 1a% o99!1an9% tax, .it- #i<ited exe<1tion ,or t-o e .-o earn !nder 9ertain t-re -o#d . I1 A,,., &x. * 3$-o .e are, .-at .e tand ,or, AIRBNB.C7+, at -tt1:CC>#og.air>n>.9o<C.-o-.e-areC4. 9 '-e N/A" a# o ent !>1oena to ot-er 9o<1anie t-at o.n .e> ite t-at #i t a1art<ent in Ne. /or0 ,or rent, in9#!ding )o<ea.a%.9o< and Roo<ara<a.9o<.

15

indi9ated t-at 3i4 t-e reB!e t .a too >!rden o<e or 3ii4 t-e N/A" o!g-t in,or<ation it did not -a;e. It a# o ne;er reB!e ted a 9on,identia#it% agree<ent. Id. K 15. 3. '-e N/A" (!>1oena (er;ed on AirBn>

7n 79to>er 5, 2013, in #ig-t o, AirBn>A 9ontin!ing re,! a# to 1rod!9e an% in,or<ation or do9!<ent re 1on i;e to t-e N/A"A #etter reB!e t, t-e N/A" er;ed AirBn>A 9o!n e# .it- a !>1oena. Id. K 16. Per t-e 1rior agree<ent .it- AirBn>, t-e !>1oena dated >a90 to A!g!e t 19 and -ad a dead#ine o, 79to>er 7, 2013. Id. P1on AirBn>A reB!e t, t-e ret!rn date .a extended to 79to>er 9, 2013. Id. K 17. '-e !>1oena, i !ed 1!r !ant to &xe9!ti;e Da. E 633124, reB!e ted: 1. An &x9e# 1read -eet Identi,%ing a## )o t t-at rent A99o<<odation3 4 in Ne. /or0 (tate, in9#!ding: 3a4 na<e, 1-% i9a# and e<ai# addre , and ot-er 9onta9t in,or<ationG 3>4 $e> ite ! er na<eG 394 addre o, t-e A99o<<odation3 4 rented, in9#!ding !nit or a1art<ent n!<>erG 3d4 t-e date , d!ration o, g!e t ta%, and t-e rate 9-arged ,or t-e renta# o, ea9a o9iated A99o<<odationG 3e4 <et-od o, 1a%<ent to )o t in9#!ding a99o!nt in,or<ationG and 3,4 tota# gro re;en!e 1er )o t generated ,or t-e renta# o, t-e A99o<<odation3 4 t-ro!g- /o!r $e> ite. '-e &x9e# 1read -eet -o!#d >e 9a1a>#e o, >eing organi:ed >% gro re;en!e 1er )o t and 1er A99o<<odation. 2. =or ea9- )o t identi,ied in re 1on e to ReB!e t No. 1, *o9!<ent !,,i9ient to Identi,% a## tax-re#ated 9o<<!ni9ation /o!r $e> ite -a -ad .it- t-e )o t, in9#!ding tax inB!irie or tax do9!<ent reB!e t .-et-er initiated >% t-e )o t or /o!. '-e de,inition o, ?A99o<<odation@ 1ro;ided in t-e !>1oena ex9#!ded -ared 1a9e : ?A99o<<odation@ <ean t-e roo< or gro!1 o, roo< .-i9- a Per on or &ntit% o,,er to rent to a g!e t or g!e t in ex9-ange ,or 1a%<ent on /o!r $e> ite, >!t not in9#!ding .-ere t-e )o t ta% at t-e A99o<<odation d!ring t-e renta# 1eriod. Id. &x. 9. '-e de,inition o, ?A99o<<odation@ .a 1e9i,i9a##% de igned to ex9#!de )o t

t-at .ere 9o<1#%ing .it- t-e :oning #a. >% re<aining 1re ent d!ring t-e renta# 1eriod. 16

'-! , t-e !>1oena did not ee0 in,or<ation ,ro< )o t t-at rented a ? -ared@ roo< .-ere t-e )o t .a 1re ent. 5. AirBn>A Da t-+in!te 7,,er in Die! o, Co<1#ian9e .it- t-e (!>1oena

7n 79to>er 6, 2013, a,ter .ee0 o, re,! a# and on t-e e;e o, t-e dead#ine, AirBn> o,,ered to 1ro;ide t-e identit% o, on#% t-e to1 50 )o t >% gro re;en!e in non- -ared 1a9e in #ie! o,

9o<1#ian9e .it- t-e !>1oena. '-e e )o t a<o!nted to ten o, <i##ion do##ar in renta# in9o<e to t-e )o t o;er t-e #a t t-ree %ear , re,#e9ting <i##ion in 1otentia# -ote# tax #ia>i#it% a#one. Id. K 19. Be9a! e AirBn> -a o;er 15,000 )o t in Ne. /or0, it 1ro1o a# 9on tit!ted an o,,er to 1ro;ide on#% a ,ra9tion o, 1V o, t-e in,or<ation o!g-t >% t-e !>1oena, and .a in !,,i9ient to re;ea# t-e extent o, i##ega# ! e. Id.10 'o date, AirBn> -a re,! ed to 1rod!9e an% o, t-e in,or<ation o!g-t, e;en t-o!g- it -a 1!>#i9a##% a90no.#edged t-at t-ere are )o t on it .e> ite .-o do not 1a% t-e )7' and .-o ;io#ate :oning #a. . '-e on#% .a% ,or t-e N/A" to identi,% )o t .-o are ;io#ating (-ort-'er< Ooning Da. , a1art<ent >!i#ding >%-#a. and ot-er 9ontra9t!a# 1ro-i>ition , and not 1a%ing )7' i ,or AirBn> to 1ro;ide t-e in,or<ation reB!e ted in t-e !>1oena. Rat-er t-an 9o<1#% .it- t-e !>1oena, AirBn> ,i#ed it <otion to B!a -.

ARGUMENT
10 Contrar% to AirBn>A arg!<ent 3AirBn> Pet. K 74, t-e N/A" did not reFe9t t-eir o,,er to en-an9e di 9#o !re a>o!t t-e )o tA re 1on i>i#it% to 1a% )7' on AirBn>.9o<. '-e N/A" a90no.#edged t-at additiona# di 9#o !re .o!#d >e -e#1,!# in en !ring t-at t-eir )o t 1a% )7' and .a .i##ing to a i t AirBn> in dra,ting t-e e di 9#o !re . R! e## A,,., K 15. )o.e;er, t-e N/A" reFe9ted an% !gge tion t-at t-e en-an9ed di 9#o !re .o!#d >e !,,i9ient to addre it 9on9ern and t-at it .o!#d .it-dra. it reB!e t. Id.

17

POINT I THE SUBPOENA IS WELL WITHIN THE ATTORNEY GENERALS BROAD INVESTIGATORY AUTHORITY It i .e##-e ta>#i -ed t-at ?TtU-e Attorne%-"enera# -a >een gi;en >road in;e tigator% re 1on i>i#itie to 9arr% o!t -i ;ita# ro#e to 1rote9t t-e 1!>#i9 a,et% and .e#,are.@ DaRo a, Axen,e#d M +it9-e## ;. A>ra< , 62 N./.2d 563, 569 319654. A99ording#%, ?TanU a11#i9ation to B!a - a !>1oena -o!#d >e granted on#% .-ere t-e ,!ti#it% o, t-e 1ro9e to !n9o;er an%t-ing

#egiti<ate i ine;ita>#e or o>;io! or .-ere t-e in,or<ation o!g-t i !tter#% irre#e;ant to an% 1ro1er inB!ir%.@ )ogan ;. C!o<o, 67 A.*.3d 1155, 1155 33d *e1At 20094 3B!oting An-e! erB! 9-, In9. ;. A>ra< , 71 N./.2d 327, 331-332 3196643interna# B!otation <ar0 o<itted44G +atter o, A>>r!::e e ;. N./. 'e<1. (tate Co<<An. 7n Do>>%, 53 A.*.3d 516, 516 33d *e1At 20074. ?'-e 1er on 9-a##enging a !>1oena >ear t-e >!rden o, de<on trating a #a90 o, a!t-orit%, re#e;an9% or ,a9t!a# >a i ,or it i !an9e.@ )ogan, 67 A.*.3d at 1155 39iting +atter o, *air%<enA Deag!e Coo1 A n. +!rtag-, 275 A.*. 591, 595 319564, a,,Ad, 299 N./. 635 3195944. '-ere i a trong 1!>#i9 intere t ?in <aintaining t-e Attorne%-"enera#A in;e tigator% 1o.er ,ree ,ro< !nne9e ar% -indran9e.@ DaRo a, 62 N./.2d at 569. '-at intere t i re,#e9ted in t-e ;er% >are->one t-re -o#d -o.ing t-at i needed to ! tain an in;e tigator% !>1oena, #e t ?TiUn;e tigation . . . >e 1ara#%:ed.@ +atter o, Da Be##e Creo#e IntA#, (.A. ;. Attorne% "enera#, 10 N./.2d 192, 196-97 319614 3B!otation <ar0 o<itted4. ?'-e rea on ,or t-i tandard i o>;io! .

An in;e tigation .o!#d >e t%<ied at t-e o!t et i, #a. en,or9e<ent o,,i9ia# -ad to 1in1oint exa9t#% .-at t-e !>1oenaed <ateria# .ere ex1e9ted to re;ea#.@ A<eri9an *enta# Coo1., In9. ;. Attorne% "en. o, Ne. /or0, 127 A.*.2d 275, 263 31 t *e1At 19674. 16

&B!a##% i<1ortant, t-e N/A" enFo% a 1re !<1tion o, good ,ait- in t-e di 9-arge o, -i in;e tigator% re 1on i>i#itie . )ogan, 67 A.*.3d at 1155, 9iting An-e! er-B! 9-, In9. ;. A>ra< , 71 N./.2d 327 at 332. '-ere i no ?1ro>a>#e 9a! e@ reB!ire<entG nor <! t t-e N/A" ?di 9#o e t-e detai# o, -i in;e tigation@ or ?1in1oint exa9t#% .-at t-e !>1oenaed <ateria# TareU ex1e9ted to re;ea#.@ A<eri9an *enta#, 127 A.*.2d at 260, 263 &B!oted in Pa;i##ion Agen9%, In9. ;. (1it:er, 9 +i 9. 3d 626, 632-633 3(!1. Ct. N./. Cnt% 200544. A## t-e N/A" i reB!ired to -o. in !11ort o, a !>1oena i !ed 1!r !ant to -i in;e tigator% a!t-orit% i t-at t-e re9ord and >oo0 o!g-t >ear ?a rea ona>#e re#ation to t-e !>Fe9t-<atter !nder in;e tigation and to t-e

1!>#i9 1!r1o e to >e a9-ie;ed.@ DaBe##e Creo#e, 10 N./.2d at 196. '-e te t e ta>#i -ed in DaBe##e Creo#e -a >een 9on i tent#% a11#ied >% Ne. /or0 9o!rt ,or o;er ,i,t% %ear . )ere, t-e N/A" -a !n9ontro;erted a!t-orit% to i !e t-e !>1oena 1!r !ant to &xe9!ti;e Da. E 633124. A99ording to t-e tat!te, t-e Attorne% "enera# <a% in;e tigate ?re1eated ,ra!d!#ent or i##ega# a9t @ .-ere ?i##ega# a9t @ in9#!de ;io#ation o, an% tate or ,edera# #a., in9#!ding 9ri<ina# #a., or an% #o9a# #a., or an% reg!#ation. N./. &xe9. Da. E 633124. (ee (tate o, Ne. /or0 ;. Prin9e Pre tige Co., In9., 52 N./.2d 105, 107 319774G Peo1#e ;. &<1%re

Ingro!nd Poo# , In9., 227 A.*.2d 731, 733 33d *e1At 19964G De,0o.it: ;. &.=.". Ba>% Prod., 50 A.*.2d 365, 366 33d *e1At 19734G =reedo< *i 9o!nt Cor1. ;. 8orn, 26 A.*.2d 517, 517 31 t *e1At 19674 3;io#ation o, Pena# Da. EE 1370 and 13714. '-e tat!te grant t-e Attorne% "enera# ?>road@ in;e tigati;e a!t-orit% to i !e !>1oena to ?9ond!9t in;e tigation into 1o i>#e ;io#ation o, t-e #a..@ A<eri9an *enta#, 127 A.*.2d at 279G ee +atter o, Roe<er ;. C!o<o, 67 A.*.3d 1169, 117033d *e1At 20094 3?t-e TAttorne% "enera#U -a a!t-orit% to in;e tigate 1otentia# ,ra!d and i##ega#it%Q@4.

19

'-e N/A"A ,a9t!a# >a i ,or t-e in;e tigation great#% ex9eed t-e a11#i9a>#e tandard. )ogan, 67 A.*.3d at 1156 3?a #ong a t-e ,!ti#it% o, t-e 1ro9e i not ine;ita>#e or o>;io! @4.

=ir t, t-ere i .ide 1read e;iden9e t-at a !> tantia# n!<>er o, )o t ;io#ate t-e (-ort-'er< Ooning Da., and >% exten ion, t-eir a1art<ent >!i#ding >%#a. and re#ated 9ontra9t!a# 1ro-i>ition . (tate<ent o, =a9t 3?(7=@4 at 15. Indeed, AirBn> doe not di 1!te t-at at #ea t o<e o, it )o t ;io#ate t-e #a.. It -a >een e ti<ated t-at o;er 50V o, t-e #i ting on AirBn>.9o< ;io#ate t-e :oning #a. . Id. (e9ond, t-ere i !> tantia# e;iden9e t-at t-e <aForit% o, )o t are not 1a%ing )7'. Id. at 15. AirBn> -a <ore t-an 100 ti<e a <an% )o t in Ne. /or0 Cit% t-an t-ere are indi;id!a# regi tered to 9o##e9t or 1a% t-e tax. Id. '-e on#% 9on9#! ion t-at 9an >e dra.n ,ro< t-i data i t-at t-e ;a t <aForit% o, )o t are not 1a%ing t-e )7'. '-i ,a9t a#one <ore t-an F! ti,ie t-e !>1oena. AirBn> 9annot e 9a1e it o>#igation to 9o<1#%, nor 9arr% it >!rden on t-i <otion, >% 9-ara9teri:ing t-e N/A" inB!ir% a a ?,i -ing ex1edition .@ (ee AirBn>A ?+e<orand!< o, Da. In (!11ort o, t-e Jeri,ied Petition,@ 3?AirBn>A Br.@4, at 5. '-e 9a e to .-i9- it 9ite are ina11o ite >e9a! e, !n#i0e t-e 1re ent it!ation, t-e% a## in;o#;ed 9ir9!< tan9e .-ere t-ere .a no ,a9t!a# >a i to !11ort an in;e tigation 3e.g., )i## ;. C!o<o, 2009 N./. +i 9. D&XI( 2370 3(!1. Ct. P# ter Cnt% +ar. 17, 20114 or no re#ation -i1 >et.een t-e do9!<ent o!g-t and t-e

in;e tigation 3e.g., In Re =!t!re 'e9-. A o9. DDC ;. (1e9ia# Co<<Ar. o, In;e tigation o, t-e N/ Cit% (9-oo# *i t., 2011 N./. +i 9. D&XI( 1352 at 12 3(!1. Ct. N./. Cnt% +ar. 17, 20114. (ee a# o In re Brod 0% ;. Ne. /or0 /an0ee , 26 +i 9. 3d 675, 666-667 3(!1. Ct. A#>an% Cnt% 200944.

20

)ere, t-e N/A" ee0 t-e identit% o, )o t in Ne. /or0, t-e addre rented, t-e d!ration o, t-e renta#, and t-e gro

o, t-e a1art<ent3 4

re;en!e generated ,ro< t-e a1art<ent , ,or on#%

t-o e a1art<ent .-ere t-e )o t did not ta% in t-e a1art<ent d!ring t-e renta# 1eriod. (7= at 17. '-e in,or<ation reB!e ted i dire9t#% re#ated to t-e N/A"[ in;e tigation to deter<ine .-o i in ;io#ation o, t-e #a.. '-e data .i## identi,% t-e )o t , t-e >!i#ding t-e% are renting in, and t-e re;en!e t-e% are generating ,ro< t-e renta#, .-i9- are 9riti9a# 9o<1onent o, e ta>#i -ing ;io#ation o, t-e (-ort-'er< Ooning Da. , t-e a1art<ent >!i#ding >%#a. , or ,ai#!re to 1a% )7'. (!9- reB!e t ea i#% ati ,% t-e a11#i9a>#e #ega# tandard . C,. Jirag ;. )%ne , 55 N./.2d 537, 552 319614 3rea ona>#e re#ation -i1 reB!ire<ent ?i not ;er% exa9ting@4G DaBe##e Creo#e, 10 N./.2d at 196 3Pn#e a !>1oena 9a## ,or ?do9!<ent .-i9- are !tter#% irre#e;ant to an% 1ro1er inB!ir%,@ or it ?,!ti#it% ... to !n9o;er an%t-ing #egiti<ate i ine;ita>#e or o>;io! ,@ 9o!rt .i## ! tain it.4.11 Indeed, t-e on#% .a% to o>tain in,or<ation a>o!t t-e #ega# ;io#ation i ,ro< AirBn>, a on#% AirBn> 0no. .-o it )o t are 3ot-er t-an t-e )o t t-e< e#;e o, .-i9- t-ere are o;er 15,0004. '-! , t-e N/A"A narro.#%-tai#ored reB!e t to t-e on#% o!r9e o, t-e a9t!a# in,or<ation, i t-e antit-e i o, a ,i -ing ex1edition. *e 1ite t-e N/A"A 9#ear a!t-orit% to i !e a !>1oena to AirBn>, t-e indi 1!ta>#e, .ide 1read e;iden9e o, AirBn> )o t A i##ega# 9ond!9t, t-e re#e;an9e o, t-e in,or<ation o!g-t to t-e in;e tigation, and re1eated reB!e t >% t-e N/A" ,or t-e in,or<ation, AirBn> -a ,ai#ed to ,!##% 9o<1#% .it- t-e !>1oena and -a ,ai#ed to e ta>#i - a #egiti<ate >a i ,or it #a90 o, 9o<1#ian9e.
11 AirBn> a# o arg!e t-at t-e in,or<ation -o!#d not >e 1rod!9ed >e9a! e t-e N/A" 9an on#% >ring an a9tion ,or ,ai#!re to 9o##e9t or 1a% a tax ?!1on t-e reB!e t o, t-e tax 9o<<i ion,@ !9- a in t-e ,or< o, a re,erra#, !nder 'ax Da. E 11513a4. AirBn> Br. at 6. '-e N/A" doe not need !9- a re,erra# >e9a! e it 9an 1ro9eed !nder ot-er #a. , !9- a t-e =a# e C#ai< A9t, &xe9!ti;e Da. E 633124 or ;ario! 9ri<ina# #a. . +oreo;er, t-ere i no rea on to >e#ie;e t-e tax 9o<<i ion .o!#d not 1ro;ide a re,erra# i, t-e N/A" di 9o;ered tax #a. ;io#ation .

21

POINT II AIRBNBS CONSTITUTIONAL ARGUMENTS ARE NOT JUSTICIABLE IN THIS PROCEEDING Da90ing an% 1ro1er >a i ,or a;oiding t-e !>1oena, AirBn> ee0 to -ie#d it )o t , in9#!ding t-e ad<itted ?>ad a9tor ,@ >% #a!n9-ing a 1!r1orted 9on tit!tiona# 9-a##enge to t-e (-ort-'er< Ooning Da. and t-e )7' #a.. AirBn> Br. at 6-13. '-i e,,ort <! t ,ai# >e9a! e AirBn> doe not -a;e tanding to 9-a##enge t-e 9on tit!tiona#it% o, t-e e #a. and t-e i !e i not ot-er.i e ri1e ,or deter<ination.12 '-e N/A" i in;e tigating AirBn>A )o t , not AirBn>, ,or 1otentia# ;io#ation o, #a., in9#!ding t-e (-ort-'er< Ooning Da. and )7'. (7= at 16. A 1art% doe not -a;e tanding to 9-a##enge t-e 9on tit!tiona#it% o, a tat!te !n#e it i !>Fe9ted to t-e 1ro;i ion o, t-at tat!te. Peo1#e ;. Ne# on, 69 N./.2d 302, 306 319674 3di <i ing a ;oid ,or ;ag!ene 9-a##enge .-ere in t-i

t-e tat!te did not a11#% to t-e de,endant , and ?t-ere,ore, an% e#e<ent o, ;ag!ene

tat!te -a -ad no e,,e9t on t-e e de,endant and t-e% -a;e no tanding to 9o<1#ain o, it.@4. =or exa<1#e, in Rent (ta>i#i:ation A An o, t-e Cit% o, Ne. /or0 ;. *in0in , 5 =.3d 591 32d Cir. 19934, t-e (e9ond Cir9!it di <i ed ,or #a90 o, tanding an ?a a11#ied@ d!e 1ro9e 9-a##enge to e9tion o, Ne. /or0 Cit%A rent ta>i#i:ation #a. , a >ro!g-t >% t-e Rent (ta>i#i:ation A o9iation on >e-a#, o, 25,000 Ne. /or0 Cit% >!i#ding o.ner . '-e 1#ainti,, a o9iation #a90ed tanding >e9a! e t-e 1ro9eeding reB!ired 1arti9i1ation o, indi;id!a# a o9iation <e<>er . '-e 9o!rt r!#ed t-at to <a0e t-e ?a a11#ied@ deter<ination it needed t-e indi;id!a#i:ed ,inan9ia# data o, t-e >!i#ding o.ner . Id. at 596.

12 In t-e e;ent t-at t-e Co!rt deter<ine t-at it i a11ro1riate to 9on ider t-e 9on tit!tiona#it% o, t-e (-ort-'er< Ooning Da. and )7', t-e N/A" reB!e t an additiona# >rie,ing 9-ed!#e to addre t-o e 1arti9!#ar arg!<ent .

22

)ere, AirBn> ee0 a i<i#ar ?a a11#ied@ 9-a##enge to t-e 9on tit!tiona#it% o, 9ertain #a. a a11#ied to it )o t , o<e o, .-i9- e;en AirBn> ad<it are ;io#ating t-e #a.. B!t, AirBn> i not a )o t. Indeed, Air>n> i not e;en an association re'resenting the "osts, a in *in0in , rendering t-eir tanding arg!<ent e;en <ore tangentia#. And e;en i, it .ere an a o9iation, AirBn> -a not de;e#o1ed t-e ne9e ar% re9ord o, indi;id!a# data ,or an a -a11#ied 9-a##enge to eit-er tat!tor% 9-e<e. AirBn> -a not 1ro;ided t-e ne9e ar% <ateria# ,or t-e Co!rt to e;en 9on ider it arg!<ent. Indeed, AirBn> i re,! ing to 1rod!9e an% indi;id!a# data and ,i#ed it <otion in an e,,ort to a;oid doing o. A 9on tit!tiona#it% o, t-e #a. . &;en i AirBn> did -a;e tanding, it 9on tit!tiona# 9-a##enge i 1re<at!re. ?'o >e ri1e, t-ere <! t >e San a9t!a# 9ontro;er % >et.een gen!ine di 1!tant .it- a ta0e in t-e o!t9o<e.A@ +atter o, 'o.n o, Ri;er-ead ;. Centra# Pine Barren Joint P#anning M Po#i9% Co<<n., 71 A.*.3d 679, 661 32d *e1At 20104 3interna# 9itation o<itted4. ?'o deter<ine .-et-er a <atter i ri1e ,or F!di9ia# re;ie., it i ne9e ar% S,ir t to deter<ine .-et-er t-e i !e tendered are a11ro1riate ,or F!di9ia# re o#!tion, and e9ond to a e t-e -ard -i1 to t-e 1artie i, F!di9ia# re#ie, !9-, AirBn> -a no tanding to 9-a##enge t-e

i deniedA@ Id. 3B!oting C-!r9- o, (t. Pa!# M (t. Andre. ;. Bar.i90, 67 N./.2d 510, 519 319664 3B!oting 'oi#et "ood A n., In9. ;. "ardner, 367 P.(. 156, 162 3196744. I !e are not a11ro1riate ,or F!di9ia# re o#!tion i, t-e agen9% -a not arri;ed at a de,initi;e 1o ition on t-e i !e t-at in,#i9t an a9t!a# 9on9rete inF!r% or t-e re o#!tion reB!ire additiona# ,a9t ,inding. Id. )ere, t-e i !e are not a11ro1riate ,or F!di9ia# re o#!tion. =ir t, t-e N/A" -a not ,i#ed, en,or9ed or ot-er.i e <ade a deter<ination a to .-et-er it .i## en,or9e t-e (-ort-'er< Ooning Da. and )7' again t a )o t, in9#!ding .-at AirBn> de 9ri>e a ?>ad a9tor .@ (e9ond, a t-ere -a >een no a11#i9ation o, t-e e #a. to an% )o t , t-ere i no et o, 23

,a9t >e,ore t-e Co!rt to <a0e t-e ?a a11#ied@ de9i ion. Arriaga ;. +!0a e%, 521 =.3d 219, 223 32d Cir. 20064 3?T;Uag!ene 9-a##enge to tat!te not t-reatening =ir t A<end<ent intere t are

exa<ined in #ig-t o, t-e ,a9t o, t-e 9a e at -andG t-e tat!e i F!dged on an a -a11#ied >a i @ B!oting +a%nard ;. Cart.rig-t, 566 P.(. 356, 3614G P-ar<. In9. ;. Pnited (tate , 391 =.3d 377, 396 32d Cir. 20054 3?a 1rin9i1#e #ong Se<>edded in t-e traditiona# r!#e go;erning 9on tit!tiona# adF!di9ationQ t-at a 1er on to .-o< a tat!te <a% 9on tit!tiona##% >e a11#ied .i## not >e -eard to 9-a##enge t-at tat!te on t-e gro!nd t-at it <a% 9on9ei;a>#% >e a11#ied !n9on tit!tiona##% to ot-er , in ot-er it!ation not >e,ore t-e Co!rtA@ B!oting Par0er ; De;%, 517 P.(. 733, 759 3197544G ee a# o Pnited (tate ;. R%>i90i, 355 =.3d 125, 129 32d Cir. 20034 3a90no.#edging #ong- tanding 1rin9i1#e t-at a ;ag!ene 9-a##enge to a tat!te t-at doe not i<1#i9ate =ir t

A<end<ent rig-t <! t >e exa<ined ?in #ig-t o, t-e 1e9i,i9 ,a9t o, t-e 9a e at -and and not .itregard to t-e tat!teA ,a9ia# ;a#idit%@4. A t-ere i no ,a9t!a# re9ord o, an% )o tA renta# 9ond!9t, AirBn> i<1ro1er#% a 0 t-e Co!rt to g!e at t-e renta# 9ond!9t o, ?-%1ot-eti9a#@ )o t and t-en a11#% t-e #a. to de9ide

.-et-er it i ;ag!e ,or t-e e t-eoreti9a# )o t . =or t-e e rea on , t-eir ?a a11#ied@ 9#ai< o, ;ag!ene <! t >e di <i ed. (ee a# o Bar.i90, 67 N./.2d 510 3di <i ing ?a a11#ied@

9on tit!tiona# 9-a##enge >e9a! e it reB!ire 9are,!# exa<ination o, ,a9t not >e,ore t-e 9o!rt4G +atter o, Ne. /or0 B#!e Dine Co!n9i#, In9. ; Adironda90 Par0 Agen9%, 66 A.*.3d 756, 761-62 33d *e1At 20114 3-o#ding t-at a 1re-en,or9e<ent 9-a##enge .a not ri1e ,or re;ie. a ?t-e a##eged inF!rie are <ere#% -%1ot-eti9a# at t-i ti<e@ and ?t-e -ar< o!g-t to >e enFoined i 9ontingent !1on e;ent .-i9- <a% not 9o<e to 1a @ and, t-! , ?t-e 9#ai<T U Q TareU nonF! ti9ia>#e a .-o##% 1e9!#ati;e and a> tra9t.@4. =ina##%, t-ere i a# o no -ar< to AirBn> >% ,ai#ing to deter<ine t-e 9on tit!tiona#it% o, t-e 25

(-ort-'er< Ooning Da. and )7' at t-i ti<e. '-e !>1oena i a t-ird-1art% !>1oena and AirBn> i not ,a9ing an% en,or9e<ent ri 0. +ore i<1ortant#%, AirBn> .o!#d still -a;e to re 1ond to t-e !>1oena and 1rod!9e t-e reB!e ted in,or<ation, e;en i, t-e (-ort-'er< Ooning Da. and )7' .ere ,o!nd !n9on tit!tiona#, >e9a! e t-e N/A" 9an 1ro9eed !nder other 9a! e o, a9tion in;o#;ing other #a. . =or exa<1#e, t-e N/A" i in;e tigating .-et-er an% )o t are ;io#ating t-eir >!i#ding >%#a. , #ea e or ot-er 9ontra9t!a# 1ro;i ion in renting o!t t-eir a1art<ent to to!ri t and ot-er tran ient . (7= at 11. I, t-e% are, t-e N/A" 9an 1!r !e 9#ai< o, 1er i tent ,ra!d and i##ega#it% !nder &xe9!ti;e Da. E 633124 or de9e1ti;e trade 1ra9ti9e !nder "BD E 359 again t t-e indi;id!a# )o t .13 '-! , t-ere 9an >e no -ar< to AirBn> i, t-e 9o!rt .ere to 1a -earing t-eir 9on tit!tiona# 9-a##enge to t-e (-ort-'er< Ooning Da. and )7' i, t-e% are reB!ired to 1rod!9e t-e data an%.a%. Indeed, AirBn> andCor a )o t .i## >e gi;en anot-er o11ort!nit% to 9-a##enge 9on tit!tiona#it% o, t-e (-ort-'er< Ooning and )7' Da. i, t-e N/A" a9t!a##% en,or9e t-e e #a. . (ee 'oi#et "ood A An ;. "ardner, 367 P.(. 156, 165R65 319674 3-o#ding t-at 1reen,or9e<ent 9-a##enge to reg!#ation reB!iring <an!,a9t!rer to a##o. in 1e9tion .a !nri1e >e9a! e t-ere 9an >e a #ater 9-a##enge to t-e reg!#ation4.15 on

13 =or exa<1#e, in '-e Cit% o, Ne. /or0 ;. (<art A1art<ent DDC, Ro>ert 8./.C-an, 'o -i In9, No. 502255C12 3(!1. Ct. N./. Cnt% =e>. 13, 20134, t-e 9o!rt ,o!nd a de9e1ti;e trade 1ra9ti9e .-ere t-e o.ner ,ai#ed to di 9#o e t-e #ega#it% and a,et% o, t-e a1art<ent . '-e 9o!rt .rote ?$-et-er or not, in o!r 9%ni9a# age, <o t 1eo1#e .o!#d 9on ider engaging in i##ega# a9ti;it% a a 1#! , <in! , or ne!tra#, t-e% -a;e t-e rig-t to 0no. .-et-er it i or i not.@ Id., at 1. 5. (etting a ide .-et-er t-e renta# ;io#ate t-e (-ort-'er< Ooning Da. , to!ri t and ot-er tran ient -a;e a rig-t to 0no. .-et-er t-e a1art<ent t-e% are renting ;io#ate t-e a1art<ent >!i#ding >%#a. or #ea e ter< o, t-e )o t, and t-! .-et-er t-e% ,a9e t-e ri 0 o, re<o;a# ,or t-at ;io#ation. '-e ,ai#!re to do o 1re ent a 9a! e o, a9tion ,or t-e N/A". 15 Note t-at t-e on#% Ne. /or0 9o!rt to addre an arg!<ent t-at a -ote# tax .a !n9on tit!tiona##% ;ag!e B!i90#% di 1en ed o, t-e arg!<ent. Jo-n )!nter ;. $arren Cnt%, 21 A.*.3d 622 33d *e1[t 20054.

25

POINT III THE ATTORNEY GENERALS TARGETED SUBPOENA IS NOT OVERLY BROAD OR UNDULY BURDENSOME =or t-e ,ir t ti<e in9e re9ei;ing t-e N/A" !>1oena, AirBn> 9#ai< t-at re 1onding to t-e !>1oena .o!#d >e !nd!#% >!rden o<e. AirBn> Br. at 13. '-i arg!<ent 9annot >e 9redited >e9a! e AirBn> did not rai e it 1re;io! #%, -a 1ro;ided no ,a9t!a# !11ort ,or an% 9#ai< o, !nd!e >!rden, and -a de<on trated t-at it 9an, in ,a9t, 1ro;ide 1re9i e#% t-e t%1e o, data t-at -a >een reB!e ted. +oreo;er, neit-er a 9#ai< o, >!rden, nor reB!e t ,or an a<o!nt o, data t-at a !>1oenaed 1art% 9on ider to >e !> tantia#, render a !>1oena in;a#id. (ee )ogan, 67 A.*.3d at 1155-56G ee a# o +atter o, (a9- ;. Ne. /or0 (tate Ra9ing M $agering Board, 227 A.*.2d 602 33d *e1At 19964. A ?1art% <o;ing ,or a 1rote9ti;e order >ear t-e >!rden o, de<on trating t-at t-e di 9#o !re o!g-t i i<1ro1er, and <! t o,,er <ore t-an 9on9#! or% a ertion t-at t-e reB!e ted di 9#o !re i o;er>road or !nd!#% >!rden o<e.@ )ire Co!n e# Ne. /or0 DDC ;. Oe#da 7.en , Index No. 112012C2011, 2012 N./. +i 9. D&XI( 3652, at \7 3(!1. Ct. N./. Cnt%. J!#% 25, 20124 3interna# 9itation o<itted4. AirBn> -a not ati ,ied t-i >!rden. It -a 1ro;ided no ex1#anation t-at de 9ri>e t-e te1 t-at <! t >e ta0en to re 1ond, nor t-e ti<e and 9o t t-at .o!#d >e entai#ed. It o,,er on#% 9on9#! or% a ertion . Indeed, t-ere i e;er% rea on to >e#ie;e t-at AirBn> 9an 1ro;ide t-e in,or<ation t-at t-e N/A" -a reB!e ted. '-e in,or<ation in t-e 1read -eet reB!e ted >% t-e N/A" 3.it- )o t na<e, addre o, a99o<<odation, date o, ta%, rate , <et-od o, 1a%<ent and tota# re;en!e ,ro<

renta#4 i 9o##e9ted electronically t-ro!g- Air>n>.9o< d!ring t-e on#ine #i ting and >oo0ing 1ro9e e . (7= at 5-7. AirBn> generate 1099 in9o<e tax ,or< ,or it t-o! and !1on 26

t-o! and o, )o t in Ne. /or0. In 9reating !9- ,or< , it <! t -a;e identi,ied it )o t , t-eir addre e , and t-e extent o, t-eir >! ine t-ro!g- AirBn>. '-e 9#ai< o, !nd!e >!rden are 1arti9!#ar#% ina11ro1riate >e9a! e t-e N/A" narro.#% tai#ored it !>1oena to ee0 on#% in,or<ation ne9e ar% to e ta>#i - #ega# ;io#ation . =or o, t-e )o t are ne9e ar% to identi,% t-e -o t G t-e addre o, t-e

exa<1#e, t-e na<e and addre

a99o<<odation i ne9e ar% to 9on,ir< C#a A d.e##ing tat! and to identi,% 1e9i,i9 !nit >eing rented 3a o11o ed to .-ere a )o t <a% #i;e 1er<anent#%4G t-e date o, ta% are ne9e ar% to 9on,ir< t-e #engt- o, t-e ta% !nder 30 da% and .-et-er t-ere are <ore t-an 2 renta# tran a9tion or renta# o, <ore t-an 15 9on e9!ti;e da% ,or 1!r1o e o, t-e )7' #a.G and tota# gro re;en!e i ne9e ar% to 9on,ir< )7' #ia>i#it%. In an atte<1t to ,!rt-er narro. it reB!e t, N/A" on#% reB!e ted data .-ere t-e )o t .a not 1re ent d!ring t-e renta#. AirBn> ne;er indi9ated it 9o!#d not 1rod!9e t-i dataG indeed, AirBn> 1re;io! #% o,,ered to 1ro;ide t-e to1 50 )o t >% gro re;en!e, .-ere t-e )o t did not

ta% at t-e a1art<ent. (7= at 16. No., AirBn> arg!e t-at it doe not -a;e t-at in,or<ation e;en t-o!g- it 1re;io! #% o,,ered !9- data, and in 9reating a #i ting on AirBn>.9o<, )o t <! t ex1#i9it#% 1ro;ide .-et-er t-e a99o<<odation i an ?entire a1art<entC-o<e,@ or a ? -ared roo<.@ (7= at 5. A !9-, AirBn> i 9a1a>#e o, di ting!i -ing t-o e #i ting t-at are ,or a ? -ared roo<.@

B!t, e;en i, AirBn> doe not -a;e t-e in,or<ation ne9e ar% to di 9ern .-et-er a )o t .a 1re ent, it -o!#d 1rod!9e t-e reB!e ted in,or<ation .it-o!t t-at #i<itation. '-e N/A" .i## ee0 an% additiona# in,or<ation it need to deter<ine i##ega#it% t-ro!g- ot-er o!r9e , in9#!ding t-e )o t .15
15AirBn> a# o arg!e t-at t-e !>1oena reB!e t in,or<ation ,ro< )o t t-at .o!#d >e !nder no o>#igation to 1a% )7'. AirBn>A Br. at 15. AirBn> .o!#d #i<it t-e N/A"A in;e tigation to tax ;io#ation .-ere, a de 9ri>ed a>o;e, N/A" -a en,or9e<ent a!t-orit% o;er n!<ero! ot-er #a. t-e )o t are 1otentia##% ;io#ating.

27

'o t-e extent t-e N/A" ee0 tax 9o<<!ni9ation , it on#% ee0 .-at AirBn> -a genera##% ad;i ed it )o t , !9- a in ,or< e<ai# ent to a## )o t regarding t-eir tax o>#igation , and not indi;id!a# 9o<<!ni9ation regarding 1e9i,i9 )o t . '-e N/A" i not ee0ing

9o<1#eted 1099 ,or< or an% tax ret!rn . '-! , 9o<1#ian9e .it- t-i a 1e9i,i9 ear9- ,or ea9- )o t, a AirBn> .rong#% a ert .

!>1oena doe not reB!ire

AirBn>A o,,er in !11ort o, it arg!<ent, +%er on ;. Dentini Bro . +o;ing M (torage Co., 33 N./.2d 250 319734, i ina11o ite. In +%er on, t-e Co<<i ioner o, t-e *e1art<ent o, Con !<er A,,air o, t-e Cit% o, Ne. /or0 in;e tigated 1etitioner, a <o;ing 9o<1an%, ,or <i re1re enting t-e 9o t o, it er;i9e , a<ong ot-er de9e1ti;e trade 1ra9ti9e . '-e

Co<<i ioner i !ed a !>1oena ee0ing ?a## >oo0 and re9ord @ ,ro< t-e 1etitioner. '-e 9o!rt 9on9#!ded t-at t-e #i<it#e 9o1e o, t-e !>1oena .a not F! ti,ied >% a re9ord o, ?i o#ated or

rare 9o<1#aint ,ro< di gr!nt#ed 9! to<er .@ Id. at 256. Pn#i0e +%er on, t-e N/A" -a an o(erwhelming ,a9t!a# >a i to !11ort it !>1oena, .it- not on#% t-o! and o, 9o<1#aint to t-e

N/A" and t-e +a%orA 7,,i9e o, (1e9ia# &n,or9e<ent, >!t #i ting on AirBn>.9o< t-at ,a9ia##% ;io#ate t-e (-ort-'er< Ooning Da. , and an o;er.-e#<ing -ortage o, tax 9erti,i9ate o, regi tration .-i9- are reB!ired to 1a% )7'. (7= at 6-15. And t-e N/A" i !ed a tai#ored reB!e t ee0ing targeted in,or<ation, not a !>1oena ,or ?a##@ do9!<ent . AirBn> -a not ! tained it >!rden t-at t-e !>1oena .a o;er>road or !nd!#% >!rden o<e.

POINT IV THE SUBPOENA SEEKS INFORMATION NOT PROTECTED FROM DISCLOSURE AirBn> arg!e t-at t-e N/A" !>1oena ee0 ?9on,identia#, 1ri;ate in,or<ation@ ,ro< 26

AirBn> )o t . AirBn> Br. at 16. )o.e;er, it 1ro;ide no 9a e and no ot-er #a. t-at 9ategori:e t-e in,or<ation reB!e ted a ?9on,identia#@ or ?1ri;ate@ or ot-er.i e di9tate t-at it i t-e 0ind o, in,or<ation t-at i 1rote9ted ,ro< #a. en,or9e<ent !>1oena . $-i#e it doe 9ite a ,e. 9a e t-at tax ret!rn are 1rote9ted in o<e 9ir9!< tan9e , t-e% are ina11#i9a>#e >e9a! e t-e N/A" i not ee0ing t-at in,or<ation. '-e N/A" !>1oena 3ReB!e t No. 14 ee0 in,or<ation 1ertaining to t-e >! ine tran a9tion >et.een AirBn> and it )o t . In 1arti9!#ar, it ee0 t-e ,o##o.ing in,or<ation a>o!t )o t : ?3a4 na<e, 1-% i9a# and e<ai# addre , and ot-er 9onta9t in,or<ationG 3>4 $e> ite ! er na<eG 394 addre o, t-e A99o<<odation3 4 rented, in9#!ding !nit or a1art<ent n!<>erG 3d4 t-e

date , d!ration o, g!e t ta%, and t-e rate 9-arged ,or t-e renta# o, ea9- a o9iated A99o<<odationG 3e4 <et-od o, 1a%<ent to )o t in9#!ding a99o!nt in,or<ationG16 and 3,4 tota# gro re;en!e 1er )o t generated ,or t-e renta# o, t-e A99o<<odation3 4 t-ro!g- /o!r

$e> ite.@ (7= at 17. It i .e##-e ta>#i -ed t-at in,or<ation 9on;e%ed in t-e ordinar% 9o!r e o, >! ine , in9#!ding a1art<ent renta# in,or<ation, i readi#% di 9o;era>#e. (ee, e.g., $iener ;. A>ra< , 119 +i 9. 2d 970, 975 3(!1. Ct. 8ing Cnt%. 19634 3!1-o#ding N/A" !>1oena in in;e tigation into 1etitioner >!i#ding o.ner[ ;io#ation o, rent ta>i#i:ation #a. and 9o<1e##ing 1rod!9tion o, >!i#ding addre e and re9ord in9#!ding renta# -i torie o, indi;id!a# !nit 4. AirBn> -a not -o.n R nor 9an it R t-at t-e in,or<ation o!g-t -o!#d >e 1rote9ted ,ro< di 9#o !re to #a. en,or9e<ent agen9ie . AirBn> re#ie -ea;i#% on In re Pa;i##ion Agen9% In9. ;. (1it:er, 9 +i 9. 3d 626 3(!1. Ct. N./. Cnt%. 20054, .-ere t-e N/A" er;ed a !>1oena on a
16 '-e !>1oena ee0 ?>an0 a99o!nt in,or<ation@ to identi,% ?d!<<% 1ro,i#e ,@ or 1ro,i#e t-at <a% a11ear to >e o1erated >% e;era# inde1endent Air>n> ! er , >!t are in ,a9t o1erated >% a ing#e ! er, or a 9oordinated net.or0 o, ! er . Ban0 a99o!nt in,or<ation .o!#d 1ro;ide t-e N/A" .it- t-e a>i#it% to 9ro -re,eren9e a1art<ent addre e .it- reB!e ted a99o!nt n!<>er , rat-er t-an .it- ! er 1ro,i#e , .-i9- a tated, are not ne9e ari#% indi9ati;e o, a ! erA identit% or an a99o<<odationA o.ner. Ne;ert-e#e , t-e 9o!rt <a% dee< it a11ro1riate t-at a99o!nt in,or<ation >e 1artia##% reda9ted to t-e ?#a t ,o!r digit @ or i<i#ar ,or<at. '-e N/A" doe not ee0 9redit 9ard in,or<ation.

29

do<e ti9 .or0er re,erra# er;i9e a 1art o, an in;e tigation into ;io#ation o,, inter alia, t-e )!<an Rig-t Da., &xe9!ti;e Da. E 292364. AirBn> Br. at 17. '-e )!<an Rig-t Da. 1ro-i>it a >road range o, di 9ri<inator% 9ond!9t, >!t it doe not a11#% to do<e ti9 er;ant , a t-e Degi #at!re ?ne;er intended Sto extend it rea9- into 1ri;ate -o<e and to !>Fe9t 1ri;ate e<1#o%<ent re#ation -i1 o, t-e <o t 1er ona# 0ind to go;ern<enta# 9ontro#.A@ In re Pa;i##ion Agen9% In9., 9 +i 9. 3d at 631 3B!oting +atter o, '-o<a ;. *o >erg, 259 A.*.2d 999, 1000 35t- *e1At 199644. '-e 9o!rt !1-e#d t-e <aForit% o, t-e N/A" !>1oena reB!e t, in9#!ding reB!iring t-e 1rod!9tion o, t-e na<e and addre e o, t-e a11#i9ant , ex9e1t to t-e extent it o!g-t in,or<ation a>o!t t-e identit% o, 1ro 1e9ti;e e<1#o%er o, t-e do<e ti9 er;ant . Id. at 633-35. Contrar% to AirBn>A arg!<ent , In re Pa;i##ion doe not o,,er >road 9on,identia#it% to 9#ient re9ord . '-e 9o!rt re,! ed to a##o. 1rod!9tion o, F! t one 9ategor% o, in,or<ation, re#ated to 1ro 1e9ti;e e<1#o%er , on#% .it-in t-e 9ontext o, t-e )!<an Rig-t Da. and it #egi #ati;e intent. )ere, neit-er t-e :oning #a. nor )7' exe<1t an% 9ategor% o, in,or<ation ,ro< en,or9e<ent. '-! , t-ere i no #ega# >a i to .it--o#d t-e in,or<ation ,ro< t-e N/A". =ina##%, AirBn> arg!e t-at tax e9re9% #a. t-at a11#% to tax ret!rn 9an o<e-o. >e ! ed to -ie#d it ,ro< di 9#o ing >! ine tran a9tion in,or<ation t-at are not tax ret!rn .17 AirBn> Br. at 17. '-e N/A" !>1oena ReB!e t No. 2 ee0 ?do9!<ent !,,i9ient to Identi,% a##

tax-re#ated 9o<<!ni9ation /o!r $e> ite -a -ad .it- t-e )o t, in9#!ding tax inB!irie or tax do9!<ent reB!e t .-et-er initiated >% t-e )o t or /o!.@ (7= at 17. Contrar% to AirBn>A
17 (ee 'ax Da. E 11563a4 3 a#e and 9o<1en ating tax ret!rn to >e e9ret4G N./.C. Ad<in Code E 11-2516 3-ote# o99!1an9% tax ret!rn to >e e9ret4G $onder $or0 Con t. Cor1. ;. (eer%, Index No. 100096C2010, 2011 N./. +i 9. D&XI( 5633, at \5 3(!1. Ct. N./. Cnt%. 79t. 12, 20114 3tax ret!rn treat<ent !nder E11563a44G Ne. /or0 (tate *e1At 'axation M =in. ;. Ne. /or0 (tate *e1At o, Da., 55 N./.2d 575, 579 319764 3 a<e4G Peo1#e ;. $ede# taedt, 77 +i 9. 2d 916, 920 3(!1. Ct. Bronx Cnt%. 19754 3 a<e4.

30

9-ara9teri:ation, t-e N/A" doe not ee0 tax ret!rn or 1099 ,or indi;id!a# )o t . AirBn> Br. at 17. 3'o t-e extent t-at t-e N/A"A !>1oena 9o!#d >e inter1reted to reB!e t tax ret!rn , t-e N/A" re 1e9t,!##% reB!e t <odi,i9ation o, t-o e e9tion o, t-e !>1oena o a to a;oid di 9#o !re o, an% a9t!a# tax ret!rn .4 '-e N/A" ee0 AirBn> form 9o<<!ni9ation to )o t regarding .-at taxe a )o t <! t 1a% or .-at tax ,or< <! t >e ,i##ed o!t. '-e N/A" doe not ee0 indi;id!a# )o t- 1e9i,i9 9o<<!ni9ation . '-e e ,or< 9o<<!ni9ation are not a,,orded 1e9ia# 1rote9tion and t-e ,a9t t-at t-e !>1oena reB!e t !9- in,or<ation i not a gro!nd to

B!a -. '-! , AirBn> o,,er no rea on .-% Ne. /or0A 1o#i9% o, #i>era# di 9o;er% -o!#d 1re;ent di 9#o !re o, .-at AirBn> te## it )o t a>o!t taxe on a !ni,or< >a i .

CONCLUSION =or a## t-e ,oregoing rea on , t-e Co!rt -o!#d den% AirBn>A <otion to B!a - and grant t-e N/A"A <otion to 9o<1e# 9o<1#ian9e .it- t-e !>1oena. 31

*ated: Ne. /or0, Ne. /or0 No;e<>er 6, 2013 Re 1e9t,!##% !><itted, &RIC '. (C)N&I*&R+AN Attorne% "enera# o, t-e (tate o, Ne. /or0 Attorne% ,or Re 1ondent B%: WWWWWWWWWWWWWWWWWWWWWWWWWW CDAR8 P. RP((&DD A i tant Attorne% "enera# Internet B!rea! 120 Broad.a% Ne. /or0, N/ 10271 32124 516-6595

7, Co!n e#: 8ARDA ". (ANC)&O &xe9!ti;e *e1!t% Attorne% "enera# &9ono<i9 J! ti9e *i;i ion RAN*ADD =7X B!rea! C-ie, 'ax1a%er Prote9tion B!rea!

32