New York State STR Bill Overview

Every year, about 5.5 million visitors experience the natural beauty, agricultural bounty, and world-class wine that distinguish New York’s Finger Lakes region. In an area where hotels are scarce, short-term rentals play a critical role in the tourism ecosystem. They expand the region’s capacity to welcome visitors and account for a significant portion of the $4.4 billion in visitor spending and 53,911 jobs supported by tourism in the region in 2023.

Although short-term rentals are not a new phenomenon in the Upstate NY markets, the surge in inventory during the pandemic brought attention to concerns about the unregulated industry. In the past 4 years, over 30 different townships across the region have developed their own short term rental regulations and policies to address the main concerns of noise, trash, parking, and safety. Additional issues of affordable housing and leveling the playing field with hotels have also been sited as reasons for the proposed Hinchey Kruger NYS STR Bill.

Overview of the New York State Assembly Bill A4130C (2023-2024)

New York State Assembly Bill A4130C (2023-2024) is designed to regulate short-term residential rentals (STRs) across the state. In it’s current state, the bill is written to:

1. Create a Mandatory Registry System. If a local township or municipality currently has a permit system in place, this will be integrated or overlap with the State’s system.

2. Apply the following taxes to short term rentals under the State’s sales and hotel/motel tax laws:

a. Local Sales Tax

b. State Sales Tax

c. Local Room Occupancy Tax

d. State Room Occupancy Tax

e. Registration fees – both local (if applicable) and State

3. Require Short Term Rental Hosts to:

a. Register Short Term Rental Units with the State or the local municipality (if applicable) every two years

b. Pay the registration fee to the State

c. Keep a guest registry for two calendar years to track all guests including the dates of the bookings, the number of guests per reservation, amount of rental fees collected including relevant tax and submit to the State on an annual basis. The State can share this information with the county, city, town or village governments upon request. Booking platforms (i.e. Airbnb, VRBO, or Expedia) are also to develop and maintain these records.

d. Include their valid registration with all listings and advertisements.

e. Post evacuation plans, emergency phone numbers, has a working fire-extinguisher, and is insured for the value of the dwelling plus a minimum of $300,000 coverage for liability.

4. Requires Booking Platforms (i.e. Airbnb, VRBO, or Expedia) to:

a. Only collect booking fees for short term rentals with a valid registration by the State or local municipality.

b. Obtain a written consent from all short term rental hosts their permission for the booking platform to submit quarterly reports of earnings to the State, that can also be shared with the local municipalities.

5. Allows Local Municipalities:

a. Who do not allow short term rentals, can request an exception to the article.

b. Who have their own registry can continue their registration system and provide those records to the State quarterly. Local municipalities may establish registration requirements that differ from the State’s requirements.

6. Establishes a Three Strike Rule for violations to the State law:

a. An owner who fails to comply with the State registration will receive a written first and second violation. A $200 fine will be imposed at the third violation. A $1000 per day fine will be imposed on all subsequent violations.

b. Violation notices have 7 days to respond and correct the violation.

c. In a municipality that does not have its own permit system, booking platforms will be issued $500 per day fines for allowing a violation.

What is Missing

While the Finger Lakes Vacation Rental Alliance (FLXVRA) supports reasonable regulations for short-term rentals but expresses concerns over the clarity and effectiveness of New York State Bill A4130C as currently written. Our key concerns include:

1. Lack of Resources for Enforcement: The bill does not allocate sufficient funds or resources for managing and enforcing rental permits, leading to inconsistent compliance and confusion for property owners, the public, and booking platforms.

2. Unclear Provisions for Social Media Rentals: The bill does not specify how property owners using social media platforms for rentals will be verified, creating an unfair loophole.

3. No Clear Appeal Process: There is no outlined appeal process for property owners facing violations, leaving them without a fair way to challenge enforcement actions.

4. Permit Fees and Duplication of Local Laws: The bill fails to address potential conflicts or duplications with local municipal regulations, adding uncertainty for

property owners. Additionally, there will also be duplicative fees between the local and state registrations.

5. Inadequate Clarification and Education for Local Municipalities: Insufficient guidance is provided to municipalities, making it difficult for them to effectively support and enforce the bill.

The Alliance urges lawmakers to address these concerns to create a more balanced regulatory framework, ensuring that communities, homeowners, and visitors all benefit from well-managed short-term rentals.

Next Steps & What You Can Do

As of the publication of this, the Bill A4130C has not yet been delivered to the Governor. Click here for an update on the bill. Once it is, Governor Hochul has a few options for the future of this bill. She can:

1. Sign the bill, as is, which will become a NYS law.

2. Veto the Bill which will be returned to the house with a statement of why it was not approved.

3. Take no action within the 10 day period, while the Legislature is in, which will also result in the bill automatically becoming a law.

So what can we do in Upstate NY to communicate to our Governor our stance on Bill A4130C? You can: ·

• Find your State Assembly member and communicate your concerns and how this bill will affect you and your region.

• Find you State Senator and tell them how this bill will impact you and your community.

• Contact Governor Hochul’s office and express your concerns about this bill and the impact it will have on you, your business, your community, etc.

If you have any additional questions about this bill or local short-term regulations in your area, you can reach us at info@flxvra.com.