New Regulation Takes Effect for Short-Term Rentals in New York
A new regulation targeting short-term rental units, like those listed on Airbnb or Vrbo, takes effect in New York around March 25. This law requires hosts to add their properties to a registry, which is designed to ease the housing crisis.
What is the New Regulation?
The regulation defines a "short-term rental unit" as a residential unit rented for under 30 days. Property owners or operators of short-term rentals must register with the Department of State (DOS) or a municipal system. Any booking service that facilitates such rentals must verify registrations and registration numbers, and remove any listings for unregistered properties.
What are the Key Provisions of the Law?
- Property owners or operators of short-term rentals must register with the DOS or a municipal system.
- Booking services must verify registrations and registration numbers, and remove any listings for unregistered properties.
- Booking services must share their data and collect taxes, providing monthly or quarterly reports on registration numbers, property locations, occupancy details, and amount of guests to the DOS and municipalities.
- The legislation classifies short-term rentals as "hotels" for tax purposes, and booking services must collect and remit the applicable taxes.
- Booking services must register with the state, maintain records, cooperate with the tax commissioner, and ensure that renters pay their appropriate taxes.
- Cities, towns, villages, and hamlets, and the Attorney General, have the power to enforce compliance through legal action against violators.
Why is this Law Important?
Supporters of regulating the industry estimate that local communities have lost over half a billion dollars in uncollected taxes since 2019, due to unregulated, under-the-table short-term rental booking platforms. Short-term rentals have driven up local rents and inflated local home prices.
What do Supporters Say about the Law?
"Our Short-Term Rental Registry is a breakthrough for New York’s housing future," said Democratic State Sen. Michelle Hinchey, who sponsored the bill in the Senate. "Communities will have the tools to grasp the true scope of short-term rentals, empowering them to develop strategies to expand stable housing options, increase affordability, and unlock untapped revenue."
FAQs
Q: What is the new regulation?
A: The new regulation targets short-term rental units, like those listed on Airbnb or Vrbo, and requires hosts to add their properties to a registry.
Q: What is the purpose of the regulation?
A: The regulation is designed to ease the housing crisis and provide communities with the tools to track and analyze how short-term rentals impact their local housing markets.
Q: What are the key provisions of the law?
A: The law requires property owners or operators of short-term rentals to register with the DOS or a municipal system, and booking services to verify registrations and registration numbers, and remove any listings for unregistered properties.
Q: What are the benefits of the law?
A: The law is expected to provide communities with the tools to grasp the true scope of short-term rentals, empowering them to develop strategies to expand stable housing options, increase affordability, and unlock untapped revenue.
