Amd §§4 & 304, add Art 7-D §§288 - 292, Mult Dwell L; amd §§1101, 1104, 1131, 1132, 1133, 1137, 1142 & 1240,
Tax L; amd §1, Chap 161 of 1970
Provides for the regulation of short-term rental units; authorizes short-term rental units; requires short-term rental hosts to register each unit with the division of housing and community renewal.
STATE OF NEW YORK
________________________________________________________________________
3407
2023-2024 Regular Sessions
IN SENATE
January 31, 2023
___________
Introduced by Sens. SKOUFIS, COONEY, HARCKHAM, HINCHEY -- read twice and
ordered printed, and when printed to be committed to the Committee on
Housing, Construction and Community Development
AN ACT to amend the multiple dwelling law, the tax law and 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 the regulation of short-term
rental units
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph 1 of paragraph a of subdivision 8 of section 4
2 of the multiple dwelling law, as amended by chapter 225 of the laws of
3 2010, is amended to read as follows:
4 (1) (A) occupancy of such dwelling unit for fewer than thirty consec-
5 utive days by other natural persons living within the household of the
6 permanent occupant such as house guests or lawful boarders, roomers or
7 lodgers; [or]
8 (B) incidental and occasional occupancy of such dwelling unit for
9 fewer than thirty consecutive days by other natural persons when the
10 permanent occupants are temporarily absent for personal reasons such as
11 vacation or medical treatment, provided that there is no monetary
12 compensation paid to the permanent occupants for such occupancy; or
13 (C) occupancy of such dwelling as a short-term rental unit pursuant to
14 article seven-D of this chapter.
15 § 2. The multiple dwelling law is amended by adding a new article 7-D
16 to read as follows:
17 ARTICLE 7-D
18 SHORT-TERM RENTAL UNITS
19 Section 288. Definitions.
20 289. Short-term rental units authorized.
21 290. Registration.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03798-01-3
S. 3407 2
1 291. Requirements of hosting platforms.
2 292. Regulations.
3 § 288. Definitions. For the purposes of this article, the following
4 terms shall have the following meanings:
5 1. "Short-term rental unit" means an entire dwelling unit, or a room,
6 group of rooms, other living or sleeping space, or any other space, made
7 available for rent by guests for less than thirty consecutive days.
8 2. "Short-term rental host" means an owner or tenant of a short-term
9 rental unit who rents such unit to guests.
10 3. "Hosting platform" means a person or entity who, pursuant to an
11 agreement with an operator of a hotel, facilitates the occupancy of a
12 hotel. A person "facilitates the occupancy of a hotel" by, in exchange
13 for a fee, either: (A) providing the forum in which an operator can list
14 or advertise a hotel for occupancy; or (B) providing the forum, in
15 which, or by means of which, the offer for occupancy is accepted.
16 § 289. Short-term rental units authorized. 1. A short-term rental host
17 may operate a dwelling unit as a short-term rental unit provided such
18 dwelling unit:
19 (a) is registered in accordance with section two hundred ninety of
20 this article;
21 (b) is not used to provide single room occupancy as defined by subdi-
22 vision sixteen of section four of this chapter;
23 (c) includes a conspicuously posted evacuation diagram identifying all
24 means of egress from the unit and the building in which it is located;
25 (d) includes a conspicuously posted list of emergency phone numbers
26 for police, fire, and poison control;
27 (e) is not subject to the emergency housing rent control law, chapter
28 seven of subtitle S of title nine of New York's compilation of codes,
29 rules and regulations, the rent and rehabilitation law of the city of
30 New York enacted pursuant to the local emergency housing rent control
31 law, the emergency tenant protection act of nineteen seventy-four, the
32 public housing law, or otherwise rent subsidized, rent controlled, rent
33 stabilized, or considered affordable housing; and
34 (f) is insured for at least five hundred thousand dollars to protect
35 against third party claims of property damage or bodily injury that
36 arise out of the operation of a short-term rental unit. Insurance
37 provided by hosting platforms can satisfy this requirement.
38 2. A short-term rental host shall not operate more than one class A
39 multiple dwelling unit as a short-term rental unit unless the units are
40 at the same address, including apartment number, if applicable.
41 3. Occupancies of a short-term rental unit shall be subject to taxes
42 and fees pursuant to articles twenty-eight and twenty-nine of the tax
43 law and applicable local laws.
44 4. Short-term rental hosts shall maintain records related to guest
45 stays for one year, including the date of each booking and the identity
46 and number of guests, and records related to their registration as
47 short-term rental hosts with the division of housing and community
48 renewal.
49 5. Hosting platforms shall maintain records related to guest stays for
50 one year, including the date of each booking and the identity and number
51 of guests. Hosting platforms shall make all relevant records available
52 to the division of housing and community renewal consistent in response
53 to valid legal process.
54 § 290. Registration. 1. Short-term rental hosts shall be required to
55 register each short-term rental unit with the division of housing and
56 community renewal.
S. 3407 3
1 2. Registrations shall be valid for two years, after which time the
2 short-term rental host may renew his or her registration in a manner
3 prescribed by the division of housing and community renewal. The divi-
4 sion of housing and community renewal may revoke the registration of a
5 short-term rental host upon a determination that the short-term rental
6 host has violated any provision of this article at least three times in
7 two calendar years, and may determine that the short-term rental host
8 shall be ineligible for registration for a period of up to twelve months
9 from the date the third violation is determined to have occurred.
10 3. The division of housing and community renewal shall set a fee for
11 short-term rental registration not to exceed one hundred dollars.
12 4. Hosting platforms are authorized to facilitate the registration
13 process by collecting the required application information and transmit-
14 ting it to the division of housing and community renewal for processing
15 if the platform has obtained short-term rental host consent.
16 § 291. Requirements of hosting platforms. Hosting platforms shall:
17 1. create a dedicated means by which complaints can be submitted by
18 short-term rental hosts, guests, and community members. These means
19 shall be available twenty-four hours a day, seven days a week.
20 2. maintain records of all transactions in cities with a population of
21 a million or more for a period of twelve months.
22 3. inform short-term rental hosts of the registration requirement and
23 regulations under this article.
24 § 292. Regulations. The division of housing and community renewal
25 shall promulgate regulations necessary and appropriate to enforce this
26 article, including regulations to facilitate the registration of short-
27 term rental hosts and to facilitate information sharing between and
28 among the division, hosting platforms, and other enforcement agencies.
29 § 3. Section 304 of the multiple dwelling law is amended by adding a
30 new subdivision 1-b to read as follows:
31 1-b. a. Every person who shall violate or assist in the violation of
32 any provision of sections two hundred eighty-nine or two hundred ninety
33 of this chapter shall be guilty of an offense, and any person found to
34 have committed three or more offenses of such sections may be prohibited
35 from operating a short-term rental unit for a period of one year.
36 b. The maximum fine for violating section two hundred eighty-nine or
37 two hundred ninety of this chapter shall be five hundred dollars for a
38 first offense; and one thousand dollars for the second or any subsequent
39 offense.
40 c. Any violation under this subdivision shall not be a crime and the
41 penalty or punishment imposed therefor shall not be deemed for any
42 purpose a penal or criminal penalty or punishment, and shall not impose
43 any disability upon or affect or impair the credibility as a witness, or
44 otherwise, of any person convicted thereof.
45 § 4. Subdivision (c) of section 1101 of the tax law, as added by chap-
46 ter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by
47 section 2 and paragraph 8 as added by section 3 of part AA of chapter 57
48 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the
49 laws of 1965, is amended to read as follows:
50 (c) When used in this article for the purposes of the tax imposed
51 under subdivision (e) of section eleven hundred five, and subdivision
52 (a) of section eleven hundred four, the following terms shall mean:
53 (1) Hotel. A building or portion of it which is regularly used and
54 kept open as such for the lodging of guests. The term "hotel" includes
55 an apartment hotel, a motel, boarding house or club, whether or not
56 meals are served, short-term rental units as defined in paragraph nine
S. 3407 4
1 of this subdivision, and a bungalow or similar furnished living unit
2 that is limited to a single family occupancy and does not provide house-
3 keeping, food, or other common hotel services, including but not limited
4 to entertainment or planned activities.
5 (2) Occupancy. The use or possession, or the right to the use or
6 possession, of any room in a hotel. "Right to the use or possession"
7 includes the rights of a room remarketer as described in paragraph eight
8 of this subdivision.
9 (3) Occupant. A person who, for a consideration, uses, possesses, or
10 has the right to use or possess, any room in a hotel under any lease,
11 concession, permit, right of access, license to use or other agreement,
12 or otherwise. "Right to use or possess" includes the rights of a room
13 remarketer as described in paragraph eight of this subdivision.
14 (4) Operator. Any person operating a hotel. Such term shall include a
15 room remarketer and such room remarketer shall be deemed to operate a
16 hotel, or portion thereof, with respect to which such person has the
17 rights of a room remarketer. This term does not include a hosting plat-
18 form as defined in paragraph ten of this subdivision.
19 (5) Permanent resident. Any occupant of any room or rooms in a hotel
20 for at least ninety consecutive days shall be considered a permanent
21 resident with regard to the period of such occupancy.
22 (6) Rent. The consideration received for occupancy, including any
23 service or other charge or amount required by the operator to be paid as
24 a condition for occupancy, valued in money, whether received in money or
25 otherwise and whether [received] collected by the operator [or a], host-
26 ing platform, room remarketer or another person on behalf of [either]
27 any of them.
28 (7) Room. Any room or rooms of any kind in any part or portion of a
29 hotel, which is available for or let out for any purpose other than a
30 place of assembly.
31 (8) Room remarketer. A person who reserves, arranges for, conveys, or
32 furnishes occupancy, whether directly or indirectly, to an occupant for
33 rent in an amount determined by the room remarketer, directly or indi-
34 rectly, whether pursuant to a written or other agreement. Such person's
35 ability or authority to reserve, arrange for, convey, or furnish occu-
36 pancy, directly or indirectly, and to determine rent therefor, shall be
37 the "rights of a room remarketer". A room remarketer is not a permanent
38 resident with respect to a room for which such person has the rights of
39 a room remarketer. A hosting platform is not a room remarketer.
40 (9) Short-term rental unit. A room, group of rooms, or other living or
41 sleeping space, or any other space let to occupants, including but not
42 limited to private dwellings, residences, or buildings used as resi-
43 dences.
44 (10) Hosting platform. A person or entity who, pursuant to an agree-
45 ment with an operator of a hotel, facilitates the occupancy of a hotel.
46 A person "facilitates the occupancy of a hotel" by, in exchange for a
47 fee, either: (A) providing the forum in which an operator can list or
48 advertise a hotel for occupancy; or (B) providing the forum in which, or
49 by means of which, the offer for occupancy is accepted.
50 § 5. Subdivision (a) of section 1104 of the tax law, as added by chap-
51 ter 3 of the laws of 2004, is amended to read as follows:
52 (a) Imposition. In addition to any other fee or tax imposed by this
53 article or any other law, on and after April first, two thousand five,
54 there is hereby imposed within the territorial limits of a city with a
55 population of a million or more and there shall be paid a unit fee on
56 every occupancy of a unit in a hotel in such city subject to tax under
S. 3407 5
1 subdivision (e) of section eleven hundred five of this part at the rate
2 of one dollar and fifty cents per unit per day, except that such unit
3 fee shall not be imposed upon (1) occupancy by a permanent resident or
4 (2) where the rent per unit is not more than at the rate of two dollars
5 per day.
6 § 6. Subdivision 1 of section 1131 of the tax law, as amended by
7 section 2 of part G of chapter 59 of the laws of 2019, is amended to
8 read as follows:
9 (1) "Persons required to collect tax" or "person required to collect
10 any tax imposed by this article" shall include: every vendor of tangible
11 personal property or services; every recipient of amusement charges;
12 every hosting platform with respect to occupancies it facilitates as
13 described in paragraph ten of subdivision (c) of section eleven hundred
14 one of this article; every operator of a hotel except with respect to
15 occupancies facilitated by a hosting platform; and every marketplace
16 provider with respect to sales of tangible personal property it facili-
17 tates as described in paragraph one of subdivision (e) of section eleven
18 hundred one of this article. Said terms shall also include any officer,
19 director or employee of a corporation or of a dissolved corporation, any
20 employee of a partnership, any employee or manager of a limited liabil-
21 ity company, or any employee of an individual proprietorship who as such
22 officer, director, employee or manager is under a duty to act for such
23 corporation, partnership, limited liability company or individual
24 proprietorship in complying with any requirement of this article, or has
25 so acted; and any member of a partnership or limited liability company.
26 Provided, however, that any person who is a vendor solely by reason of
27 clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision
28 (b) of section eleven hundred one of this article shall not be a "person
29 required to collect any tax imposed by this article" until twenty days
30 after the date by which such person is required to file a certificate of
31 registration pursuant to section eleven hundred thirty-four of this
32 part.
33 § 7. Section 1132 of the tax law is amended by adding a new subdivi-
34 sion (m) to read as follows:
35 (m) In carrying out the obligations imposed under this section, a
36 hosting platform shall have all the duties, benefits, and entitlements
37 of a person required to collect tax under this article and article twen-
38 ty-nine of this chapter with respect to the occupancies giving rise to
39 the tax obligation, including the right to accept a certificate or other
40 documentation from an occupant substantiating an exemption or exclusion
41 from tax, as if such hosting platform were the operator of the hotel
42 with respect to such occupancy, including the right to receive the
43 refund authorized by subdivision (e) of this section and the credit
44 allowed by subdivision (f) of section eleven hundred thirty-seven of
45 this part.
46 § 8. Section 1133 of the tax law is amended by adding a new subdivi-
47 sion (g) to read as follows:
48 (g) a hosting platform is relieved of liability under this article for
49 failure to collect the correct amount of tax to the extent that the
50 hosting platform can show that the error was due to incorrect or insuf-
51 ficient information given to the hosting platform by the operator,
52 whether intentional or unintentional.
53 § 9. Section 1137 of the tax law is amended by adding a new subdivi-
54 sion (g) to read as follows:
55 (g) a hosting platform who facilitates the occupancy of a hotel is
56 relieved from the duty to remit to the commissioner the tax imposed by
S. 3407 6
1 this article in regard to a particular occupancy if, pursuant to an
2 agreement with an operator registered with the commission as required by
3 section eleven hundred thirty-four of this part, the hosting platform
4 and operator agree that the operator is required to remit the tax
5 directly to the commissioner. In such situation, the operator shall be
6 treated as if it collected the tax and shall have all of the rights and
7 obligations imposed by New York law on persons required to collect tax,
8 including but not limited to the liability imposed by section eleven
9 hundred thirty-three of this part.
10 § 10. Section 1142 of the tax law is amended by adding a new subdivi-
11 sion 16 to read as follows:
12 16. Notwithstanding any provision of law to the contrary, including
13 but not limited to subdivisions four, five, and six of this section, no
14 hosting platform shall be required to list any operator of a hotel on
15 any return required to be filed with the commissioner under the applica-
16 ble tax laws and any regulations adopted pursuant thereto. Information
17 provided by a hosting platform to the commissioner shall be confiden-
18 tial. Such confidential information shall not be disclosed by the
19 commissioner unless the hosting platform has given written consent to
20 make such disclosure or there is an agreement between the hosting plat-
21 form and the commissioner to make such disclosure. Notwithstanding any
22 law to the contrary, information provided by a hosting platform shall
23 not be subject to article six of the public officers law and shall not
24 be provided to any other agency of the state, locality, or any other
25 government entity or political subdivision. Audits of any hosting plat-
26 form shall be conducted solely on the basis of the tax identification
27 number associated with each hosting platform and shall not be conducted
28 directly or indirectly on any operator of a hotel or any occupant to
29 whom occupancy is rented from an operator of a hotel, nor shall any
30 hosting platform be required to disclose any personally identifiable
31 information relating to any operator of a hotel or occupant to whom
32 occupancy is rented from an operator of a hotel. Provided, however, that
33 if a hosting platform and operator have entered into an agreement pursu-
34 ant to section eleven hundred thirty-six of this part, only the operator
35 shall be subject to audit by the commissioner.
36 § 11. Section 1240 of the tax law, as amended by chapter 356 of the
37 laws of 2014, is amended to read as follows:
38 § 1240. Administration and collection. The taxes authorized under
39 sections twelve hundred one through twelve hundred four of this article
40 which are now imposed shall continue to be administered and collected by
41 the fiscal or other officers of the city, county or school district in
42 the same manner as such taxes have been administered and collected by
43 such officers immediately prior to the enactment of this article, in
44 accordance with the applicable provisions of the charter, administrative
45 code, local law, ordinance or resolution then in force, with such amend-
46 ments in respect to administration and collection as may be enacted,
47 except that any taxes that counties are authorized to impose under
48 sections twelve hundred two-a through twelve hundred two-xx of this
49 article shall be imposed on the same transactions subject to tax under
50 subdivision (e) of section eleven hundred five of article twenty-eight
51 of this chapter, and shall be collected by any person required to
52 collect tax under section eleven hundred thirty-one of article twenty-
53 eight of this chapter, and such person shall have all the rights,
54 duties, and responsibilities as set forth in the provisions of sections
55 eleven hundred thirty-one through eleven hundred forty-eight of article
56 twenty-eight of this chapter. Provided, however, if a hosting platform
S. 3407 7
1 and a county have previously entered into an agreement regarding the
2 collection of tax, the terms of such agreement shall continue to govern
3 the collection of such tax. Taxes authorized under sections twelve
4 hundred one through twelve hundred four of this article which may here-
5 after be imposed by a city, county or school district shall be adminis-
6 tered and collected in such manner as may be provided in its charter,
7 administrative code, local laws, ordinances or resolutions, with such
8 amendments in respect to administration and collection as may be
9 enacted, except that any taxes that counties are authorized to impose
10 under sections twelve hundred two-a through twelve hundred two-xx of
11 this article shall be imposed on the same transactions subject to tax
12 under subdivision (e) of section eleven hundred five of article twenty-
13 eight of this chapter, and shall be collected by any person required to
14 collect tax under section eleven hundred thirty-one of article twenty-
15 eight of this chapter, and such person shall have all the rights,
16 duties, and responsibilities as set forth in the provisions of sections
17 eleven hundred thirty-one through eleven hundred forty-eight of article
18 twenty-eight of this chapter. Notwithstanding any other provision of law
19 to the contrary, the authorization to impose tax upon the transfer of
20 real property pursuant to subdivision (b) of section twelve hundred one
21 of this article, shall not, when the conveyance consists of a transfer
22 of property made as a result of an order of the court in a foreclosure
23 proceeding ordering the sale of such property, include the authorization
24 to impose civil or criminal penalties, interest, or other liability upon
25 the referee or sheriff effectuating the transfer.
26 § 12. Subdivision 3 of section 1 of chapter 161 of the laws of 1970,
27 relating to enabling any city having a population of one million or more
28 to impose and collect taxes on the occupancy of hotel rooms in such
29 city, is amended to read as follows:
30 (3) Such local laws may provide that any tax imposed shall be paid by
31 the person liable therefor to the owner of the hotel room occupied or to
32 the person entitled to be paid the rent or charge for the hotel room
33 occupied for and on account of the city imposing the tax and that such
34 owner or person entitled to be paid the rent or charge shall be liable
35 for the collection and payment of the tax; and that such owner or person
36 entitled to be paid the rent or charge shall have the same right in
37 respect to collecting the tax from the person occupying the hotel room,
38 or in respect to non-payment of the tax by the person occupying the
39 hotel room, as if the tax were a part of the rent or charge and payable
40 at the same time as the rent or charge; provided, however, that the
41 finance administrator or other fiscal officers of such city, specified
42 in such local law, shall be joined as a party in any action or proceed-
43 ing brought to collect the tax by the owner or by the person entitled to
44 be paid the rent or charge. Notwithstanding any provision to the contra-
45 ry, a hosting platform, as defined in paragraph 10 of subdivision (c) of
46 section 1101 of the tax law, shall collect the tax authorized to be
47 imposed by this section.
48 § 13. This act shall take effect on the one hundred twentieth day
49 after it shall have become a law.
