A bill to regulate short-term rentals in New York, a billion-dollar industry outside of New York City, is awaiting action from Gov. Kathy Hochul. It would require landlords to register their units every two years and allow municipalities to collect sales and occupancy taxes on short-term rentals.
The bill passed at the end of the session and continues to generate controversy as the governor weighs her decision. At separate events on Monday, both sides sought to get her attention.
A group of Airbnb hosts met in Kingston to discuss their concerns if the bill is signed into law. Emily Tillery, an Airbnb host who also works with owners as an interior designer, told reporters that regulations that make it harder for them to do business would weaken their positive impact on the local economy.
“People are going to keep their weekend homes whether they’re listed on Airbnb or not, so why not make them benefit at the same time, the local economy benefits from it?” she said.
But Pat Fahy, the campaign’s sponsor, stressed that the aim was not to undermine this advantage, but to give the state a better understanding of the background of this expanding industry.
“(It’s) a billion-dollar industry that we don’t have good data on at the state level,” she said.
This is especially important, she argued during a virtual press conference, given concerns about the impact of the short-term rental industry on New York’s severe shortage of affordable housing. Fahy insisted that state and local governments need to know how many housing units are being used for this purpose. The bill proposes that local governments use the information obtained through the registry to adjust their local short-term registry to reflect available housing stock and other conditions.
“(It’s) a billion-dollar industry that we don’t have good data on at the state level,” she said. “We’re experiencing a housing crisis, we’re part of a national housing crisis that we know is worse in many ways in some of our most popular destinations in New York.”
In addition, as Fahy put it, it would create a “level playing field” by mandating the collection of sales and occupancy taxes on short-stay stays. Proponents argue that this approach is consistent with requirements for guests of hotels and motels.
“State and local governments are estimated to be missing out on over a hundred million dollars a year,” Fahy said.
Tillery countered that while property owners themselves would not have to pay taxes and fees, the law’s associated regulatory and insurance implications would make it harder for hosts to rent out their properties. She added that it would also unfairly impact smaller property owners who don’t have the means to overcome those hurdles.
“I am an individual and do not have the team or the resources to be on a par with a hotel that normally employs a large team of staff,” she said.
The governor usually keeps her plans for upcoming bills under wraps. Supporters told reporters Monday they were unsure of her decision, pointing out that getting the bill passed had been a struggle in itself.
