Vacations In New York State May Get More Expensive Because Of New Bill
If a new bill passes, vacationing in New York could become more expensive. The new bill would create a law to regulate short-term rentals in New York State.
Dubbed the Short-Term Rental Registry Act, the bill was introduced Friday, January 6, 2023, by state Sen. Michelle Hinchey, a democrat representing Saugerties. The goal of the bill is to help local governments in New York track vacation rentals, as well as regulate and collect taxes on them. The general idea of the bill is,
To create a registration system for short-term rentals in New York State and allow for the collection of sales tax & applicable occupancy tax generated from such rentals to the state and localities.
New York State collects sales tax on hotels, in addition to what local municipalities add on. According to Airbnb, local governments in New York state do tax short-term rentals. The rates vary by county. Airbnb doesn't list a tax rate for the state, so it's likely this bill would create a new state tax.
New Bill Could Drive Vacation Rental Prices Up In New York State
While I totally understand the need to regulate short-term rentals in the state, the bill could have the unintended consequence of driving vacation rental prices up. As the owners of these properties face more red tape and taxes, they are most likely going to pass the costs on to us. According to Empire State Development, tourism in New York is a billion-dollar industry.
A record-high 265.5 million visitors enjoyed New York State in 2019, spending $73.6 billion and generating an economic impact of $117.6 billion.
Many of Us New Yorkers vacation within the state, often using short-term rentals. This bill could hit us in the pockets and drive the cost of our vacations up.
The bill is currently in the Senate Housing, Construction And Community Development committee.