Amd §§4 & 304, add Art 7-D §§288 - 292, Mult Dwell L; amd §§1101, 1105, 1104, 1131, 1132 & 1202, Tax L; amd
§1, Chap 161 of 1970
Relates to the regulation of short-term rental units; authorizes short-term rental units and requires short-term rental hosts to register each unit with the division of housing and community renewal; establishes that occupancies of a short-term rental unit shall be subject to taxes and fees pursuant to articles twenty-eight and twenty-nine of the tax law and applicable local laws.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7520 Revised 05/10/17
SPONSOR: Lentol TITLE OF BILL:
An act to amend the multiple dwelling law and the tax law, in relation
to the regulation of short-term rental units; and to amend chapter 161
of the laws of 1970, relating to enabling any city having a population
of one million or more to impose and collect taxes on the occupancy of
hotel rooms in such city, in relation to authorizing any city agency
administering certain taxes to enter into voluntary agreements to permit
the collection and remittance of such taxes
PURPOSE OR GENERAL IDEA OF BILL:
To legalize responsible home sharing in New York, while enabling regula-
tors to target enforcement of those who turn permanent housing into
illegal hotels
SUMMARY OF PROVISIONS:
Subparagraph 1 of paragraph a of subdivision 8 of section 4 of the
multiple swelling law, as amended by chapter 225 of the laws of 2010, is
amended.
Section 2 adds a new article (seven-D) to the multiple dwelling law
detailing short-term rental units.
Section 304 of the multiple dwelling law is amended by adding a new
subdivision 1-b.
Subdivision (c) of section 1101 of the tax law, as added by chapter 93
of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by section 2
and paragraph 8 as added by section 3 of part AA of chapter 57 of the
laws of 2010, and paragraph 5 as amended by chapter 575 of the laws of
1965, is amended and two new paragraphs 9 and 10 are added.
Subdivision (e) of section 1105 of the tax law is amended by adding a
new paragraph 3.
Subdivision (a) of section 1104 of the tax, as added by chapter 3 of the
laws of 2004, is amended.
Subdivision 1 of section 1131 of the tax law, as amended by chapter 576
of the laws of 1994, is amended.
Section 1132 of the tax law is amended by adding a new subdivision (1).
Section 1202 of the new tax law is amended by adding a new subdivision
(h).
Section 1 of chapter 161 of the laws of 1970, relating to enabling any
city having a population of one million or more to impose and collect
taxes on the occupancy of hotels rooms in such city, is amended by
adding a new subdivision 11.
***JUSTIFICATION:
For as long as people have had homes, they have opened them up to trav-
elers, welcoming newcomers to their neighborhoods and earning a little
extra money on the side. By the middle of the 19th century, nearly half
of urban Americans spent part of their lives either as boarders in
others' homes or as hosts in their own.
Today, the revolution in information and communications technology have
led to a home sharing revival with Americans from coast to coast
connecting with travelers from all over the world on digital platforms
like Airbnb, Homeaway, VRBO, and others.
New York is already reaping the benefits of this innovative industry.
From Buffalo to Brooklyn, the North Country to the Southern Tier, home
sharing is an increasingly important component of the state's economy.
In New York, over 2 million people have stayed in Airbnb homes in 2016,
providing $5,400 in supplemental income for the typical host. In addi-
tion, nearly 2.3 million New York residents used Airbnb to travel within
the Empire State.
Despite the expansive growth and promise of home sharing, the Multiple
Dwelling law- which dates to 1929-prohibits short-term rentals (STR) of
fewer than 30 days in Class A multiple dwelling units within the City of
New York and fails to differentiate between illegal hotel operators and
permanent residents who share their homes when they are away for the
weekend or a vacation. It subjects all New Yorkers to the same penalties
for short term rentals, whether they share their permanent home for
three nights a year, or run a commercial operation for three hundred.
This legislation amends the Multiple Dwelling law to legalize responsi-
ble home sharing in New York while enabling regulators to target
enforcement of those who turn permanent housing into illegal hotels.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.
***Some of the language contained is from Airbnb documentation.
