BILL NUMBER: S820
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the real property law and the tax law, in relation to
short term rental units; amends a chapter of the laws of 2024 amending
the real property law and the tax law relating to short-term residential
rental of private dwellings in certain municipalities, as proposed in
legislative bills numbers S. 885-C and A. 4130-C, in relation to the
effectiveness thereof; and repeals certain provisions of the tax law and
such chapter relating to the authority of local governments to prohibit
certain short term rental units
 
PURPOSE:
This is a chapter amendment to L.2024, c.672, to require each county
that does not have their own short term rental registry to create and
maintain a short-term rental registry unless they enact a local law
opting out of the registry. The chapter amendment further establishes
regulations around such registry, including the establishment of fees
and enforcement. The bill also establishes a taxation regime for short
term rentals.
 
SUMMARY OF PROVISIONS:
This legislation amends the underlying chapter by modifying the struc-
ture of the short term rental regime from a state-wide regime to a coun-
ty based regime. Each county must create and maintain a short term
rental registry, unless they opt out by local law. Hosts must register
their property with the county the property is located in. Booking
services must pay each county a fee and provide quarterly reports on
rental activity, with penalties ranging from warnings to $500 daily
fines for non-compliance. The bill also implements a tax collection
framework starting March 1st, 2025, allowing for both sales tax and
occupancy tax collection where applicable, with revenue-sharing arrange-
ments between counties and municipalities. Counties can partner to
create joint registries, and those that opt out of registry creation can
still collect sales tax but not occupancy taxes.
 
EXISTING LAW:
None.
 
JUSTIFICATION:
This legislation is a negotiated change to the underlying chapter.
 
LEGISLATIVE HISTORY:
Chapter amendment to Chapter 672 of the Laws of 2024. S.885-C and
A.4130-C, both passed the Senate and Assembly, respectfully, in June
2024.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2024 amending the real property law and the tax
law, in relation to short term rental units, as proposed in legislative
bills numbers S.885-C and A.4130-C, takes effect.

Statutes affected:
S820: 1104 tax law, 1105 tax law, 1133 tax law, 1134 tax law, 1138 tax law, 1145 tax law, 1210 tax law