Counties urge Governor Hochul to sign legislation to level the playing field in short-term rentals
As hundreds of county leaders prepare to attend the annual meeting later this month hosted by the New York State Association of Counties (NYSAC), county officials held a press conference 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.
he 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.
New York’s county executives also strongly support this bill. The State Counties Executives Association (NYSCEA) sent a bi-partisan letter to Governor Hochul and legislative leaders highlighting the importance of this bill. Steve Neuhaus, Orange County Executive and President of NYSCEA said, “Short-term rentals are already part of our tourism sector, but they aren’t playing on the same field as their peers in the hotel and hospitality industry. This bill fixes that issue and also creates a mechanism to provide much needed revenue to both the county and state governments.
“By working with our partners in the State Legislature, we’ve been able to achieve significant progress on this legislation that will establish a fair system for short-term rentals that will directly benefit local communities by funding essential services, such as public safety, social services, and infrastructure improvements,” said Acquario. “We applaud Speaker Heastie and Senate Majority Leader Stewart-Cousins, and members in both chambers, for their commitment to working with counties to find bipartisan and common-sense solutions to the challenges facing local governments. And now we are asking the Governor to do her part and sign this bill into law.”
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