A bill to regulate short-term rentals in New York, a billion-dollar industry in the state outside of New York City, is awaiting action from Gov. Kathy Hochul. It would require those rentals to register their units every two years and allow municipalities to collect sales and occupancy tax on short-term rentals.
Passed at the very end of session, it is continuing to generate controversy as the governor weighs her decision. At seprarate events, both sides worked to get her attention Monday.
A group of Airbnb hosts gathered in Kingston to discuss their concerns if the bill is signed. 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 will blunt their positive impact on the local economy.
“People are going to keep their weekend houses whether or not they are listed on Airbnb, so why not let them benefit the local economy at the same time?” she said.
But sponsor Assemblymember Pat Fahy stressed the intent is not to undermine that benefit, but for the state to get a better understanding of what is behind the sprawling industry.
“[It's] a billion-dollar industry that we have no good data on at the state level,” she said.
Important especially, she argued as part of a virtual press conference, amid concerns about the short-term rental industry’s impact 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 that purpose. The bill suggests that local governments use the information obtained through the registry to “right size” their local short-term registry to the available housing stock and other conditions.
“[It's] a billion-dollar industry that we have no good data on at the state level,” she said. “We are experiencing a housing crisis, we are part of a national housing crisis which we know has been in so many ways been worse in some of our most popular destinations in New York.”
It would also “level the playing field” as Fahy put it, by requiring the collection of sales and occupancy taxes for short-term stays, a practice proponents argue is in line with what is required of guests staying at hotels and motels.
“State and local governments are missing out on an estimated hundred plus million dollars per year,” Fahy said.
Tillery countered that while property owners don’t have to pay taxes and fees themselves, the associated regulatory and insurance implications of the bill will make it more difficult for hosts to rent their properties. She added that it would also unfairly target smaller owners who don’t have the means to jump through those hurdles.
“I am an individual, and I don’t have the team or the resources to be considered level with a hotel who typically has a large team of people on staff,” she said.
The governor does not usually tip her hand as far as what she plans to do with pending legislation, and sponsors told reporters Monday they are unsure what she will decide, pointing out that getting the bill passed was a battle in itself.