How A New Law Changes New York’s Rentals

New York has taken a big step towards regulating short-term rentals. Here's what we know about this new law passed.

In the final days of 2024, Governor Kathy Hochul agreed to pass a bill that requires short-term rentals to pay sales tax for the first time, and this bill give counties a clear picture of what the local short-term rentals (STR) landscape looks like.

For many years, short-term rentals have mostly unregulated, and only partially taxed. As STRs have grown in explosive popularity, communities have struggled with how to treat, track, or tax them. But that will change on March 25, when the new Short-Term Rental Registry law takes effect."

Most significantly according to NCPR, the new law requires platforms like Airbnb and VRBO report information four times a year to New York State, including a full list of rental locations and taxes collected, by county. Counties can then opt to receive that information, and use it create accurate STR registries.

This bill is the first of its kind in the nation, and marks a big change in how government treats short-term rentals. At a press conference in 2024, one of the bill's sponsors, Michelle Hinchey, a New York State Senator for the 41st district in the Hudson Valley, said the bill will help communities manage housing availability and affordability, while bringing in untapped revenue. "

New York legislators initially passed this bill in July, and it sat on Governor Hochul’s desk for months. The bill’s passage is a big win for the hotel and motel industry. Why's that? They have always had to pay sales and occupancy tax, and this truly gives them what they call ‘a level playing field.’