Counties urge governor to sign bill, requiring sales tax on short-term rentals

Press Release, New York State Association of Counties

ALBANY – As hundreds of county leaders prepare to attend the annual meeting next month hosted by the New York State Association of Counties (NYSAC), county officials held a press conference today to encourage Governor Kathy Hochul to sign a key piece of legislation that will level the playing field between hotels and short-term rental companies.

The bill that passed both houses of the State Legislature, S.885-C (Hinchey) / A.4130-C (Fahy), requires short-term home rental agencies, such as VRBO and AirBnB to collect sales tax and hotel/motel occupancy taxes. (The measure excludes New York City.)

“While online platforms for short-term rentals have opened new opportunities for homeowners and travelers alike, they also present a variety of unique challenges. It is essential that we strike a balance between innovation and the well-being of our communities. These platforms must contribute their fair share to our economy and adhere to the same regulations as local hotels. This bipartisan legislation will help level the playing field and ensure accountability in the short-term rental industry. I urge Governor Hochul to sign this bill into law,” said Albany County Executive McCoy.

VRBO already collects state and/or local sales taxes or local occupancy taxes in all 49 states other than New York, along with the District of Columbia, Puerto Rico, Canada and Mexico; and has done so for years. Airbnb also collects state and/or local sales or occupancy taxes in 48 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Canada and Mexico.

The bill also requires short-term rental companies in the state to provide the State Department of Taxation and Finance with information on each rental unit, including how much each host is renting units for throughout the year.

This measure was among NYSAC’s top priorities for this year’s Legislative Session, and county delegates are expected to adopt a resolution at their upcoming meeting to urge the Governor to sign this legislation.

“To be clear: we are not opposed to the short-term rental industry. In fact, we appreciate the role they play in supporting tourism in New York State. We just want to bring a little sunshine to this part of the industry so that communities have a better understanding of homes and units that are for rent and how often. And we need to generate some tax revenue to offset additional costs to public safety, health and infrastructure services,” added NYSAC Executive Director Stephen J. Acquario.