Updated on January 31, 2025
New York State’s landmark short-term rental registry law allows counties to opt into a program to track and regulate vacation rentals and requires STR operators to remit sales tax on their bookings.
Gov. Kathy Hochul approved S.885C/A.4130C on Dec. 21. Effective in late April 2025, the law changes how STRs and booking platforms operate across the state, raising the cost of doing business but potentially yielding more detailed data on the industry’s economic contributions.
Evolution of the law
The legislation, sponsored by Sen. Michelle Hinchey and Assemblymember Patricia Fahy, initially called for a statewide STR registry maintained by the Department of State (DOS). However, the governor modified the bill, citing concerns over “significant unbudgeted costs,” according to an approval memo. Instead, the law encourages counties to establish their own registries, with DOS receiving only quarterly reports from booking platforms on the number of STR bookings in each county.
Counties and cities that already have STR registries will retain their existing systems and maintain their autonomy in setting regulations, penalties, and enforcement measures. Local governments also keep the right to ban STRs, as is the case in parts of Rockland County, according to the Rockland County Business Journal.
The law defines a short-term rental as “an entire dwelling, unit, or a room, group of rooms, other living or sleeping space, or any other space within a dwelling, made available for rent by guests for less than 30 consecutive days.”
The new law mandates that STR operators, or booking platforms on their behalf, collect and remit sales and occupancy taxes, matching their tax obligations with those of hotels. Avalara reported that these tax rates vary by jurisdiction and will be determined before the law takes effect on April 21, 2025. For example, the new law requires STRs in jurisdictions with a population of more than 1 million to pay a fee of $1.50 for each booking.
For more details on paying STR taxes in New York, check out Avalara’s state-customized vacation rental tax guide.
Impact on operators and booking platforms
STR hosts in participating counties must register their properties, and operators statewide must comply with state and local tax regulations, including remitting sales tax and occupancy taxes. Meanwhile, Airbnb and Vrbo must submit quarterly reports to these counties detailing STR activity, including occupancy nights, numbers of guests, and taxes collected.
Nathan Rotman, Airbnb’s Director of Policy, criticized the law: “This unnecessary bill imposes a new, unfunded mandate on counties and creates a complicated bureaucratic system that burdens homeowners trying to earn modest income to pay their bills,” he said in a prepared statement published by the Press-Republican. “It also puts the personal information of hosts throughout the state at risk due to data-sharing requirements.”
Lindsay Bolton, Co-Founder of the Finger Lakes Vacation Rental Alliance and Project Manager at Rent Responsibly, said, “Shifting responsibility to booking platforms raises concerns, as it excludes other booking sources and may influence owner choices.” She also noted that the bill lacks clarity on coordination between local and county governments and fails to address noise, trash, and parking issues that impact communities. “This is purely financial,” she said.
However, “the bill has the potential to bring greater transparency to short-term rentals statewide and highlight their substantial economic contributions,” she added. “In some counties collecting occupancy tax, short-term rentals have even generated more revenue than hotels, underscoring their importance to local economies.”
Intentions behind the law
Sponsors of the legislation argued that it enhances transparency around how STRs impact housing availability and ensures they contribute fairly to local economies.
“The law offers a new county-by-county look into the explosive growth of the short-term rental industry and is aimed at helping communities across the state manage housing availability and affordability while bringing in owed revenue from sales tax and hotel and motel occupancy taxes,” according to a press release from bill sponsor Sen. Michelle Hinchey’s office.
County officials appreciated the financial benefits of increased tax revenue. Franklin County Treasurer Fran Perry estimated that STR-related sales tax could generate an additional $800,000 annually for the county. However, Perry acknowledged that implementation details remain unclear, the Press-Republican reported.
Hinchey’s press release noted that over the past five years, New York has potentially lost up to $550 million in uncollected STR sales and occupancy taxes, according to AllTheRooms.
Before the April 2025 implementation deadline, counties must decide whether to establish registries and how to manage compliance.
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