New YorkS 8202025-2026 Regular SessionSenateWALLET

Regulates short-term rentals

Sponsored By: Michelle Hinchey (Democratic)

Became Law

RULESWAYS AND MEANS

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 0 benefits, 2 costs, 5 mixed.

New rules and costs for short-term hosts

You must register each short‑term rental with your county or multi‑county registry and show the registration number on every listing. You must post an evacuation diagram and emergency numbers, keep a working fire extinguisher, and carry at least $300,000 in liability insurance; a platform’s policy can satisfy this. Single room occupancy and rent‑regulated units are not allowed. Counties can charge application and renewal fees to cover registry and enforcement costs. Keep stay and tax records for two years after the calendar year of the stay. Tenants must be permanent occupants or have written owner permission; counties must verify consent. Enforcement: first two violations are warnings; a third can be fined up to $200; later violations can be up to $500 per day, with a seven‑day cure period, and these fines start only after your county creates a registry. Repeated violations can lead to revocation and up to 12 months of ineligibility; listing without a current registration also triggers a 12‑month ban.

Stricter rules for booking platforms

A booking site counts as a booking service if it takes reservations or payments and charges fees. A platform cannot collect a fee unless it verifies the unit’s current registration with the county or multi‑county registry. If a county creates a platform registry, the platform may have to register and pay a cost‑based fee. In counties with a registry, a platform that collects fees for an unregistered unit can be fined or enjoined; fines can reach $500 per day, per violation, until fixed. Platforms must keep stay and listing data for two years and report it to counties every Jan 1, Apr 1, Jul 1, and Oct 1, starting 90 days after the law takes effect. They must produce data to the attorney general or counties on valid legal request; counties must share it with local governments within 60 days; the data is not public. Platforms may require hosts to consent to this data sharing as a condition of service.

Tax relief and duties for hosts

Beginning March 1, 2025, if you get a valid certificate of collection from the platform and give accurate info, you do not have to collect sales tax for that stay and you may leave that rent off your return. If all your sales are handled by platforms and you have valid certificates (or the platform has an approved public agreement), you do not need your own tax registration. If you willfully operate without a required certificate of authority, you can be charged with a misdemeanor. For this tax, a guest becomes a permanent resident only after 180 straight days, not 90, which affects tax on longer stays. The law also repeals a prior tax paragraph (Tax Law 1105(e)(3)); the effect depends on what it said before.

Counties must run rental registries

Covered counties must set up a system to register short‑term rentals. Counties may join together to run multi‑county registries. A county can opt out only by the later of December 31, 2025, or nine months after this section takes effect; no new opt‑outs are allowed after that. Each covered county must post a clear link to the registry on its website.

Local bans and stronger enforcement

Counties, cities, towns, and villages may ban or further limit short‑term rentals, even in covered areas. The attorney general and local governments can bring actions for violations. Counties can make agreements with booking sites to remove listings that lack valid registration. Existing housing laws also apply to enforcement.

Who is covered for short-term rentals

The law covers rentals of homes or rooms for fewer than 30 days for tourist or transient use in covered areas. Places outside covered areas are labeled non‑covered; in very large cities, certain buildings are also included in that label. Covered areas include most counties, cities, towns, and villages, but exclude big cities of 1,000,000+ and their counties, places that opted out or already had a registry at the start, and places that lawfully ban short‑term rentals. The law does not apply when a guest stays fewer than 30 days with no pay to the permanent occupant, or to temporary lodging approved by the health department.

Platforms must collect short-term rental taxes

Beginning March 1, 2025, booking platforms are treated as vendors for sales tax on short‑term rentals they handle. They must get a tax certificate of authority, collect and remit tax, file returns, and keep records. The tax department may post a public list of platforms with valid certificates. Platforms get limited protection if a tax error was caused by wrong information from the host. Platforms also must send the state an electronic, county‑by‑county count of guest stays at the same recurring times as their county reports.

Sponsors & Cosponsors

Sponsor

Michelle Hinchey
Democratic • Senate

Cosponsors

Patricia Fahy
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 57 • No: 24

Senate vote • 2/24/2025

FLOOR Vote

Yes: 41 • No: 19

committee vote • 1/13/2025

Rules Committee Vote

Yes: 16 • No: 5

Actions Timeline

SIGNED CHAP.99
2/28/2025Senate
DELIVERED TO GOVERNOR
2/28/2025Senate
RETURNED TO SENATE
2/25/2025House
PASSED ASSEMBLY
2/25/2025House
ORDERED TO THIRD READING RULES CAL.105
2/25/2025House
SUBSTITUTED FOR A5686
2/25/2025House
REFERRED TO WAYS AND MEANS
2/24/2025House
DELIVERED TO ASSEMBLY
2/24/2025Senate
PASSED SENATE
2/24/2025Senate
ORDERED TO THIRD READING CAL.94
1/13/2025Senate
REFERRED TO RULES
1/8/2025Senate

Bill Text

Original
1/6/2025
PDF

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