STATE OF NEW YORK
________________________________________________________________________
8065--B
2017-2018 Regular Sessions
IN ASSEMBLY
May 25, 2017
___________
Introduced by M. of A. FAHY, McDONALD -- read once and referred to the
Committee on Housing -- recommitted to the Committee on Housing in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- again reported from said committee with amendments, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the multiple residence law and the tax law, in relation
to short-term residential rental of private dwellings
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The multiple residence law is amended by adding a new arti-
2 cle 2-A to read as follows:
3 ARTICLE 2-A
4 SHORT-TERM RESIDENTIAL RENTAL UNITS
5 Section 20. Definitions.
6 21. Short-term residential rental units; regulation.
7 22. Registration.
8 23. Exception.
9 24. Penalties.
10 § 20. Definitions. For the purposes of this article, the following
11 terms shall have the following meanings:
12 1. "Short-term residential rental unit" means an entire dwelling unit,
13 or a room, group of rooms, other living or sleeping space, or any other
14 space, made available for rent by guests for less than thirty consec-
15 utive days, where:
16 (a) the unit is offered for tourist or transient use by the permanent
17 resident of the residential unit;
18 (b) the permanent resident is a natural person; and
19 (c) the permanent resident has registered the residential unit and
20 maintains good standing on the short-term residential rental registry
21 maintained by the department of state.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03665-08-8
A. 8065--B 2
1 2. "Short-term rental host" means an owner or tenant of a short-term
2 rental unit who rents such unit to guests.
3 3. "Hosting platform" means a person or entity who, pursuant to an
4 agreement with a short-term rental host:
5 (a) provides a platform for compensation through which unaffiliated
6 third party short-term rental hosts can offer to rent short-term rental
7 units; and
8 (b) collects a fee in connection with either:
9 (i) providing the forum in which, or by means of which, the offer of
10 occupancy of a short-term rental unit is accepted; or
11 (ii) providing the forum in which a short-term rental host can list or
12 advertise space in a short-term rental unit.
13 § 21. Short-term residential rental units; regulation. 1. A short-term
14 rental host may operate a dwelling unit as a short-term residential
15 rental unit provided such dwelling unit:
16 (a) is registered in accordance with section twenty-two of this arti-
17 cle;
18 (b) is not used to provide single room occupancy as defined by subdi-
19 vision forty-four of section four of this chapter;
20 (c) includes a conspicuously posted evacuation diagram identifying all
21 means of egress from the unit and the building in which it is located;
22 (d) includes a conspicuously posted list of emergency phone numbers
23 for police, fire, and poison control;
24 (e) has a working fire-extinguisher; and
25 (f) is insured by an insurer licensed to write insurance in this state
26 or procured by a duly licensed excess line broker pursuant to section
27 two thousand one hundred eighteen of the insurance law for at least the
28 value of the dwelling, plus a minimum of three hundred thousand dollars
29 coverage for third party claims of property damage or bodily injury that
30 arise out of the operation of a short-term rental unit. Notwithstanding
31 any other provision of law, no insurer shall be required to provide such
32 coverage.
33 2. Occupancies of a short-term rental unit shall be subject to taxes
34 and fees pursuant to articles twenty-eight and twenty-nine of the tax
35 law and applicable local laws.
36 3. Short-term rental hosts shall maintain records related to guest
37 stays for one year, including the date of each booking and the identity
38 and number of guests, and records related to their registration as
39 short-term rental hosts with the division of housing and community
40 renewal.
41 4. Hosting platforms shall maintain records related to guest stays for
42 one year, including the date of each booking and the identity and number
43 of guests. Hosting platforms shall make all relevant records available
44 to the department of state consistent in response to valid legal proc-
45 ess.
46 5. Short-term rental hosts may only list one unit on a short-term
47 rental platform.
48 § 22. Registration. 1. Short-term rental hosts shall be required to
49 register a short-term residential unit with the department of state.
50 2. Registration shall be valid for two years, after which time the
51 short-term rental host may renew his or her registration in a manner
52 prescribed by the department of state. The department of state may
53 revoke the registration of a short-term rental host upon a determination
54 that the short-term rental host has violated any provision of this arti-
55 cle at least three times in two calendar years, and may determine that
56 the short-term rental host shall be ineligible for registration for a
A. 8065--B 3
1 period of up to twelve months from the date the third violation is
2 determined to have occurred.
3 3. The department of state shall set a fee for short-term residential
4 rental unit registration.
5 § 23. Exception. Notwithstanding the provisions of any other law to
6 the contrary, this article shall not apply to:
7 1. a private dwelling or apartment whose permanent resident, family
8 member, or owner remains in the private dwelling or apartment for the
9 duration of any rental period, provided however, that such private
10 dwelling or apartment is in compliance with the standards set forth in
11 the law for bed and breakfast establishments; or
12 2. incidental and occasional occupancy of such dwelling unit for fewer
13 than thirty consecutive days by other natural persons when the permanent
14 occupants are temporarily absent for personal reasons, such as vacation
15 or medical treatment, provided that there is no monetary compensation
16 paid to the permanent occupants for such occupancy; or
17 3. to any individual or owner who rents out their private dwelling or
18 apartment for fewer than thirty consecutive days who earns no more than
19 twenty-five hundred dollars per annum in total for all such applicable
20 rental periods.
21 § 24. Penalties. Notwithstanding the provisions of any other law to
22 the contrary, anyone found in violation of the provisions of this arti-
23 cle shall be subject to a civil penalty of not less than one thousand
24 dollars nor more than twenty-five thousand dollars for each violation.
25 In addition to such civil penalty, a separate additional penalty may be
26 imposed of not more than one thousand dollars for each day that the
27 violation is not corrected.
28 § 2. Subdivision (c) of section 1101 of the tax law, as added by chap-
29 ter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by
30 section 2 and paragraph 8 as added by section 3 of part AA of chapter 57
31 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the
32 laws of 1965, is amended to read as follows:
33 (c) When used in this article for the purposes of the tax imposed
34 under subdivision (e) of section eleven hundred five of this article,
35 and subdivision (a) of section eleven hundred four of this article, the
36 following terms shall mean:
37 (1) Hotel. A building or portion of it which is regularly used and
38 kept open as such for the lodging of guests. The term "hotel" includes
39 an apartment hotel, a motel, boarding house or club, whether or not
40 meals are served, and short-term rental units.
41 (2) Occupancy. The use or possession, or the right to the use or
42 possession, of any room in a hotel. "Right to the use or possession"
43 includes the rights of a room remarketer as described in paragraph eight
44 of this subdivision.
45 (3) Occupant. A person who, for a consideration, uses, possesses, or
46 has the right to use or possess, any room in a hotel under any lease,
47 concession, permit, right of access, license to use or other agreement,
48 or otherwise. "Right to use or possess" includes the rights of a room
49 remarketer as described in paragraph eight of this subdivision.
50 (4) Operator. Any person operating a hotel. Such term shall include a
51 room remarketer and such room remarketer shall be deemed to operate a
52 hotel, or portion thereof, with respect to which such person has the
53 rights of a room remarketer.
54 (5) Permanent resident. Any occupant of any room or rooms in a hotel
55 for at least ninety consecutive days shall be considered a permanent
56 resident with regard to the period of such occupancy.
A. 8065--B 4
1 (6) Rent. The consideration received for occupancy, including any
2 service or other charge or amount required to be paid as a condition for
3 occupancy, valued in money, whether received in money or otherwise and
4 whether received by the operator [or], a hosting platform, a room
5 remarketer or another person on behalf of [either] any of them.
6 (7) Room. Any room or rooms of any kind in any part or portion of a
7 hotel, which is available for or let out for any purpose other than a
8 place of assembly.
9 (8) Room remarketer. A person who reserves, arranges for, conveys, or
10 furnishes occupancy, whether directly or indirectly, to an occupant for
11 rent in an amount determined by the room remarketer, directly or indi-
12 rectly, whether pursuant to a written or other agreement. Such person's
13 ability or authority to reserve, arrange for, convey, or furnish occu-
14 pancy, directly or indirectly, and to determine rent therefor, shall be
15 the "rights of a room remarketer". A room remarketer is not a permanent
16 resident with respect to a room for which such person has the rights of
17 a room remarketer. This term does not include a hosting platform.
18 (9) Short-term rental unit. A room, group of rooms, or other living or
19 sleeping space, or any other space let to occupants, including but not
20 limited to private dwellings, residences, or buildings used as resi-
21 dences.
22 (10) Hosting platform. A person or entity who, pursuant to an agree-
23 ment with an operator of a hotel:
24 (i) provides a platform for compensation through which an unaffiliated
25 third party hotel operator offers to rent space in a hotel; and
26 (ii) collects a fee in connection with either:
27 (A) providing the forum in which, or by means of which, the offer of
28 occupancy of a hotel room is accepted; or
29 (B) providing the forum in which a hotel operator can list or adver-
30 tise space in a hotel for occupancy.
31 § 3. Subdivision (e) of section 1105 of the tax law is amended by
32 adding a new paragraph 3 to read as follows:
33 (3) The rent for every occupancy of a room or rooms in a hotel offered
34 for rent through a hosting platform, as defined in paragraph ten of
35 subdivision (c) of section eleven hundred one of this article, regard-
36 less of whether it is furnished, limited to a single family occupancy,
37 or provides housekeeping, food, or other common hotel services, includ-
38 ing, but not limited to, entertainment or planned activities.
39 § 4. Subdivision 1 of section 1131 of the tax law, as amended by
40 section 1 of part X of chapter 59 of the laws of 2018, is amended to
41 read as follows:
42 (1) "Persons required to collect tax" or "person required to collect
43 any tax imposed by this article" shall include: every vendor of tangible
44 personal property or services; every recipient of amusement charges; and
45 every operator of a hotel; and hosting platforms unless relieved of such
46 obligation pursuant to paragraph three of subdivision (l) of section
47 eleven hundred thirty-two of this part. Said terms shall also include
48 any officer, director or employee of a corporation or of a dissolved
49 corporation, any employee of a partnership, any employee or manager of a
50 limited liability company, or any employee of an individual proprietor-
51 ship who as such officer, director, employee or manager is under a duty
52 to act for such corporation, partnership, limited liability company or
53 individual proprietorship in complying with any requirement of this
54 article, or has so acted; and any member of a partnership or limited
55 liability company. Provided, however, that any person who is a vendor
56 solely by reason of clause (D) or (E) of subparagraph (i) of paragraph
A. 8065--B 5
1 (8) of subdivision (b) of section eleven hundred one of this article
2 shall not be a "person required to collect any tax imposed by this arti-
3 cle" until twenty days after the date by which such person is required
4 to file a certificate of registration pursuant to section eleven hundred
5 thirty-four of this part.
6 § 5. Section 1132 of the tax law is amended by adding a new subdivi-
7 sion (l) to read as follows:
8 (l)(1) A hosting platform shall be required to (i) collect from the
9 occupants the applicable taxes arising from such occupancies; (ii)
10 comply with all the provisions of this article and article twenty-nine
11 of this chapter and any regulations adopted pursuant thereto; (iii)
12 register to collect tax under section eleven hundred thirty-four of this
13 part; and (iv) retain records and information as required by the commis-
14 sioner and cooperate with the commissioner to ensure the proper
15 collection and remittance of tax imposed, collected, or required to be
16 collected under this article and article twenty-nine of this chapter.
17 (2) In carrying out the obligations imposed under this section, a
18 hosting platform shall have all the duties, benefits, and entitlements
19 of a person required to collect tax under this article and article twen-
20 ty-nine of this chapter with respect to the occupancies giving rise to
21 the tax obligation, including the right to accept a certificate or other
22 documentation from an occupant substantiating an exemption or exclusion
23 from tax, as if such hosting platform were the operator of the hotel
24 with respect to such occupancy, including the right to receive the
25 refund authorized by subdivision (e) of this section and the credit
26 allowed by subdivision (f) of section eleven hundred thirty-seven of
27 this part.
28 (3) An operator of a hotel is not a person required to collect tax for
29 purposes of this part with respect to taxes imposed upon occupancies of
30 hotels if:
31 (i) the operator of the hotel can show that the occupancy was facili-
32 tated by a hosting platform who is registered to collect tax pursuant to
33 section eleven hundred thirty-four of this part; and
34 (ii) the operator of the hotel accepted from the hosting platform a
35 properly completed certificate of collection in a form prescribed by the
36 commissioner certifying that the hosting platform has agreed to assume
37 the tax collection and filing responsibilities of the operator of the
38 hotel; and
39 (iii) any failure of the hosting platform to collect the proper amount
40 of tax with respect to such occupancy was not the result of the operator
41 of the hotel providing incorrect information to the hosting platform,
42 whether intentional or unintentional.
43 This provision shall be administered in a manner consistent with
44 subparagraph (i) of paragraph one of subdivision (c) of this section as
45 if a certificate of collection were a resale or exemption certificate
46 for purposes of such subparagraph, including with regard to the
47 completeness of such certificate of collection and the timing of its
48 acceptance by the operator of the hotel; provided however, that with
49 regard to any occupancies sold by an operator of the hotel that are
50 facilitated by a hosting platform who is affiliated with such operator,
51 the operator shall be deemed liable as a person under a duty to act for
52 such hosting platform for purposes of subdivision one of section eleven
53 hundred thirty-one of this part.
54 (4) The commissioner may, in his or her discretion develop standard
55 language, or approve language developed by a hosting platform, in which
A. 8065--B 6
1 the hosting platform obligates itself to collect the tax on behalf of
2 all the operators of hotels.
3 (5) In the event an operator of a hotel is a room remarketer, and all
4 other provisions of this subdivision are met such that a hosting plat-
5 form is obligated to collect tax, and does in fact collect tax as
6 evidenced by the books and records of such hosting platform, then the
7 provisions of subdivision (e) of section eleven hundred nineteen of this
8 article shall be applicable.
9 § 6. Subpart A of part 1 of article 29 of the tax law is amended by
10 adding a new section 1200 to read as follows:
11 § 1200. Definition. For the purposes of this article "hotel" shall
12 mean a building or portion of such building which is regularly used and
13 kept open as such for the lodging of guests, including: (a) an apartment
14 hotel, (b) a motel, (c) a boarding house or club, whether or not meals
15 are served, and (d) short-term residential rental units as defined in
16 subdivision one of section twenty of the multiple residence law.
17 § 7. Notwithstanding any other provisions of law to the contrary, a
18 county, city, town, or village government may enact a local law prohib-
19 iting or limiting the listing or use of short-term residential rental
20 units.
21 § 8. This act shall take effect on the one hundred twentieth day after
22 it shall have become a law.
