Yes most western cities do have regulations about this and it's focused on two main issues. One, is that rents in urban areas is on the increase, places that are purchased and available for temporary rentals create over speculation and drive up demand, punishing residents with lower availability and higher prices for living accommodations. Two, as you indicated, they skirt local taxation laws which are draconian in nature but generate revenue just from a tourist being there. Most cities have a daily room rate and sales taxes imposed on a hotel room. This can be over 20%, for example, Baltimore 24% ( 9% + 15% ) on a daily room price just for being in the city. How one differentiates a local resident trying to make a buck or a speculator buying up places to let out to temporary tourists is at the heart of the matter, therefore a city just bans the activity altogether and then comes after those who provide the service, the tenants. Airbnb can of course obviate themselves from the matter because they just connect potential travelers with those who are willing to let them stay at their place for awhile. Legal entanglements can be sticky, but Airbnb essentially can walk taking it's money with them leaving the sub contractors to twist in the wind.
“The bureaucracy is expanding to meet the needs of the expanding bureaucracy.” - Oscar Wilde