ALBANY – Senator Michelle Hinchey (D, Saugerties) and Assemblymember Patricia Fahy (D, Albany) have announced that their bill to create New York’s first Short-Term Rental (STR) Registry is on its way to the Governor’s desk following its bipartisan passage in both the Senate and Assembly in the final days of the 2024 State Legislative Session.
“Short-term rentals have been overlooked in the housing crisis discussion in New York and nationwide, and we made it a priority of the entire New York State Legislature this year, fundamentally reshaping the conversation to recognize STRs as a vital part of the solution,” Hinchey said. “Housing supply is scarce everywhere, and the rise of STRs is strangling what little we have left, driving up costs and displacing families because they can no longer afford to live here. Our bill to create New York’s first statewide Short-Term Rental Registry will help protect communities, spur economic development across our State, and provide new revenue for municipalities to reinvest.”
Short-term rentals play an important role in New York’s tourism economy, helping homeowners generate extra income and often serving as the sole visitor lodging option in rural areas. The rapid growth of this billion-dollar industry, however, has exacerbated the housing crisis by reducing housing availability, driving up costs, and displacing long-term residents. Legislation to create a statewide Short-Term Rental Registry, S885C/A4130C, will help communities across the state address these challenges by providing a clear picture of local housing landscapes and delivering tens of millions of dollars in new revenue to support communities.
If signed into law, the bill would require property owners to register their short-term rentals with the NYS Department of State every two years. Based on that information, the department would send monthly reports to municipalities with details on the number of rentals in their community, their locations, and occupancy nights. Municipalities would also be allowed to collect sales and occupancy tax on short-term rentals, addressing an estimated $550 million in lost local revenue over the past five years.
“The recent passage of legislation to regulate the state’s short-term rentals – a $1 billion industry – is precedent-setting and gives a blueprint for other states to get a handle on this massive, unchecked industry,” said Mark Dorr, President of the New York State Hospitality & Tourism Association. “The combined efforts of Senator Hinchey, Assemblymember Fahy, and the entire State Legislature to make this happen is truly remarkable. It will provide millions of dollars in tax revenues municipalities desperately need, and it levels the playing field for current, state regulated businesses.”
