NYC vacations may get more expensive due to new bill

If a new bill passes, New York vacations could become more expensive. The new bill would create a law to regulate short-term rentals in New York State.

Dubbed the Short-Term Rental Registry Act, the bill was introduced Friday, Jan. 6, 2023, by State Senator Michelle Hinchey, a Democrat representing Saugerties. The purpose of the bill is to help local governments in New York City track vacation rentals, as well as regulate and collect taxes on them. The general idea of ​​the bill is,

Create a system of registration for short-term rentals in New York State and enable the collection of sales tax and applicable occupancy tax generated by such rentals to the state and localities.

New York State collects sales tax from hotels, in addition to what local municipalities add. Local governments in New York state tax short-term rentals, Airbnb says. Prices vary by department. Airbnb does not list tax rates for the state, so it is likely that this bill would create a new state tax.

New bill could drive up New York state vacation rental prices

While I fully understand the need to regulate short-term rentals in the state, the bill could have the unintended consequence of driving up vacation rental prices. As the owners of these properties face more paperwork and taxes, they will most likely pass the costs on to us. According to Empire State Development, tourism in New York is a billion dollar industry.

A record 265.5 million visitors visited New York State in 2019, spending $73.6 billion and generating an economic impact of $117.6 billion.

Many of us New Yorkers vacation in the state, often using short-term rentals. This bill could hurt our pockets and drive up the cost of our vacations.

The bill is currently at the Senate Housing, Building and Community Development Committee.

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