New YorkS 8202025-2026 Regular SessionSenateWALLET

Regulates short-term rentals

Sponsored By: Michelle Hinchey (Democratic)

Signed by Governor

RULESWAYS AND MEANS

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 3 benefits, 8 costs, 4 mixed.

Unlicensed rental operators face tax penalties

Operators required to hold tax authority face civil penalties for operating without a valid certificate. Penalties reach $500 for the first day and $200 for each later day, capped at $10,000, plus other penalties. Willful operation without required authority is a misdemeanor. Operation without a valid certificate within five years of a final denial, suspension, or revocation is also a misdemeanor. Lack of knowledge of that decision is a defense to the latter offense; conviction carries at least a $500 fine.

Hosts and platforms face rental penalties

Specified fines cannot start before a county registry exists; hosts receive warnings for their first two violations. A third violation can bring up to $200, and later violations up to $500 per day. Hosts have seven days to fix a violation without accumulating fines, except for a new violation involving another unit. Booking services face up to $500 per day per violation until fixed; courts can block fees for unregistered units. Covered jurisdictions can enforce rental rules, counties can arrange platform help removing ineligible listings, and the Attorney General can bring cases statewide regardless of registry type.

Rental hosts must register and pay

Hosts must register each covered unit with its county or shared registry every two years and display registration numbers in offers and ads. Application and renewal fees can cover only actual, necessary registry and enforcement costs; the law sets no dollar amount. Nonowners must lawfully possess and permanently occupy the unit, with written owner permission verified before registration or renewal. At least three violations in two consecutive calendar years can trigger revocation and up to 12 months of ineligibility; illegal occupancy can prompt a revocation request. Offering an unregistered unit brings 12 months of registration ineligibility after a violation is found.

Rental safety rules protect guests

Covered short-term rentals generally offer a dwelling or room for fewer than 30 consecutive days and must be registered. Units cannot provide prohibited single-room occupancy, violate other laws, or qualify when rent regulation or specified housing agreements bar registration. Hosts must post evacuation diagrams and emergency numbers, maintain a working fire extinguisher, and meet health and safety rules. They need at least $300,000 in third-party liability coverage from a New York-licensed insurer or through a licensed excess-line broker. Booking-service insurance counts if it provides equal or greater coverage and the host lists through that service.

Hosts get time before registries open

Specified registration, host, booking-service, and data-reporting duties do not apply before the county establishes its registry or shared registry. The delay ends when that registry is established. This delay does not suspend separate local booking-service reporting rules.

Rental businesses get tax collection protections

Operators get collection relief for platform-handled stays when they receive a properly completed collection certificate in good faith. The certificate must state that the service is registered and will collect tax on all taxable occupancy sales it facilitates. Relief excludes errors caused by incorrect operator information; an affiliated operator is treated as a person required to act for the service. Booking services get liability relief to the extent they prove wrong or missing operator information caused a collection error. That service relief excludes affiliated businesses, including specified ownership interests over 5%.

Rental operators get tax paperwork relief

Operators whose sales all use booking services can avoid separate tax registration with a good-faith collection certificate or approved public agreement. They can exclude qualifying rent from their sales-tax returns with timely collection documentation and accurate rent and occupancy information. This does not exclude rental income from income tax or cancel tax owed on stays. The tax agency must post certificate information and can condition relief on valid service authority at the quarter’s start to protect sales-tax revenue. The commissioner can also reduce an operator’s assessment after finding the claimed tax is wrong or excessive.

Guests face taxes on rental stays

New York sales tax applies to qualifying short-term rental stays, including rentals covered by the referenced New York City definition. The sales-tax rule excludes permanent residents staying at least 90 consecutive days and rent of $2 or less per day. A separate occupancy-tax definition uses 180 consecutive days for permanent-resident status; these are different tests. Authorized counties that have not opted out, and authorized local governments within them, can add short-term rentals to hotel occupancy taxes. That local tax requires local action; the law does not set a new tax rate here.

New York City guests pay daily fee

A $1.50 fee applies per occupied rental unit per day in New York City, the city meeting the million-person threshold. It does not apply to permanent residents staying at least 90 consecutive days or rent of $2 or less per day. The law also preserves the city’s existing occupancy tax for rentals covered by its referenced local definition. It does not set a new rate for that existing city tax.

Rental hosts must keep guest records

Hosts must keep guest-stay records for two years after the end of the calendar year of each stay. Records must include stay dates, guest counts, costs, itemized sales and occupancy taxes collected, and registration records. Hosts must provide these records when the local enforcement agency lawfully requests them.

Booking services must check rental registration

More fee-charging rental platforms fall under booking-service rules; listing-only platforms are no longer expressly excluded. When registration is required, services cannot collect booking fees without verifying current registration for the unit and owner or tenant. They must check with the county or shared registry, which must supply verification data. Counties and shared registries can also create booking-service registration systems. Those systems can charge only actual, necessary construction, operating, and maintenance costs; the law sets no fee amount.

Booking services must collect rental taxes

The rental tax rules apply to rent collected by operators or booking services on or after March 1, 2025. Booking services must perform vendor tax duties when they arrange occupancy under an operator agreement and collect rent directly, through affiliates, or through contracted collectors. Duties include obtaining tax authority, collecting and remitting tax, filing returns, keeping records, and cooperating with the tax agency. Collection duties also extend to short-term rental operators and marketplace providers for sales they facilitate. An owner renting their own property for three days or fewer per calendar year without a booking service is excluded from the collection requirement.

Counties run short-term rental registries

Covered New York counties must create rental registries, alone or with other counties; New York City and its counties are excluded. Coverage also has exceptions for qualifying local registration systems. Counties can opt out by local law by the later of December 31, 2025, or nine months after this section takes effect. Repealing an opt-out makes a county covered immediately; municipalities keep an exception only for registries created during the specified interim period. Covered counties must prominently link to their registry on their websites.

Local governments keep rental controls

Local governments can ban or further limit short-term rental listings and use, even alongside county registries. A local ban does not, by itself, remove the article’s requirements or make a prohibited rental legal. Qualifying registries existing on the article’s effective date can continue under local rules, including local enforcement and fines. After that date, a city, town, or village can create a registry only if it is neither covered nor inside a covered jurisdiction. Localities outside covered jurisdictions with their own registries can maintain or change their penalty systems.

Booking services report detailed rental stays

Subject to the registry-start delay, reporting begins 90 days after the article takes effect, then runs January 1, April 1, July 1, and October 1. Services report dates, guest counts, costs, itemized taxes, full unit addresses, host legal names, and registration numbers to each relevant county. They retain these details for two years after the stay’s calendar year; counties share reports with municipalities within 60 days. Stay-level data and supporting records are not public, but enforcement access and production through valid legal process remain available. Services also send monthly county stay-and-night totals to the Department of State; separate reporting rules outside covered jurisdictions remain intact.

Sponsors & Cosponsors

Sponsor

Michelle Hinchey
Democratic • Senate

Cosponsors

Patricia Fahy
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 172 • No: 56

House vote • 2/25/2025

Assembly floor vote

Yes: 115 • No: 32

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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