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A04130 Summary:

COSPNSRRosenthal L, Levenberg, Burdick, Simon, Kelles, Woerner, Clark, Shimsky, Simone, Gunther, Lunsford, Paulin, Thiele, Gallagher, Stirpe, Jacobson, Barrett, Lupardo, Shrestha
Add Art 12-D §§447-a - 447-g, RP L; amd §§1101, 1105, 1131, 1132, 1136 & 1142, add Art 29 Part 1 Subpart A §1200, Tax L
Relates to short-term residential rentals of private dwellings in certain municipalities; requires registration and records.
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A04130 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the real property law and the tax law, in relation to short-term residential rental of private dwellings in certain munici- palities   PURPOSE OR GENERAL IDEA OF BILL: To create a registration system for short term rentals in New York State and allow for the collection of sales tax & applicable occupancy tax generated from such rentals to the state and localities.   SUMMARY OF PROVISIONS: Section one amends the real property law by adding a new article 2-a to establish the definitions, regulation, registration, exception, penal- ties, enforcement, and data sharing of short-term residential rental units. Section two amends 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. Defines "short-term rental unit" for the purposes of tax collection and remittance. Section three amends subdivision (e) of section 1105 of the tax law by adding a new paragraph 3 to post the rent for every occupancy of a room in a hotel or short-term rental offered for rent. Section four amends subdivision one of section 1131 of the tax law to define the entities responsible for the collection of applicable taxes. Section five amends section 1132 of the tax law by adding a new subdivi- sion (m) to outline the process of applicable tax collection and remit- tance to appropriate taxing jurisdiction. Section six amends paragraph 4 of subdivision (a) of section 1136 of the tax law to exclude the rent from occupancy of a short-term rental-unit facilitated by a booking service if the owner of such rental returns to reside in such residence. Section seven amends section 1142 of the tax law by adding a new subdi- vision 16 to publish a list on the department's website of booking services whose certificates of authority have been revoked. Section eight amends subpart A of part 1 of article 29 of the tax law by adding a new section 1200 to define hotels. Section nine states that a county, city, town, or village government may enact a local law prohibiting or further limiting the listing or use of dwelling units as short-term residential rental units. Section ten sets the severability of this act if any application of any provision is held to be invalid. Section eleven states the effective date.   JUSTIFICATION: New York State is facing a dire shortage of housing supply, specifically affordable and workforce housing, which is causing instability across our communities. While solving the housing crisis will take significant investment and bold legislative action, one area of housing policy that must be addressed is the extreme proliferation of short-term rentals. Municipalities across upstate New York saw a record influx of relocated residents and visitors alike, with Hudson and Kingston becoming the top two moved-to-places in the country during the COVID-19 pandemic. For many, the ability to welcome visitors for short-term stays has been a welcomed source of income, and for our smaller cities and towns, increased tourism has bolstered their economies. However, while this resurgence played a significant, and unforeseen, role in supporting our Main Streets and providing additional income streams for local residents, it also caused an already precarious hous- ing market to become nearly non-existent and has since turned good hous- ing stock into vacation rentals taking these homes off the market indef- initely. Municipalities need better tools to understand how this economic driver can help, without displacing local residents and compounding an already growing problem all in the name of profit. Addi- tionally, many of these same municipalities have been forced to spend significant resources to manage their short-term rental issues, often leaving neighboring towns with differing regulations. This causes confusion among homeowners, visitors and law enforcement and forces municipalities to spend resources they often don't have in order to protect their residents. This legislation, for the first time, develops statewide guidance on short-term rentals, including a rental registry, in order to give municipalities the information and the revenue they need to make smart decisions to help right-size the short-term rental market in their specific communities. Also, municipalities with their own sho rt-term rental registration systems may continue to use them and short-term rentals in those municipalities do not need to register with the state. Finally, the tax collection provisions apply to short-term rentals statewide, regardless of whether municipalities have their own registration systems.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This bill would actually increase revenue for the state and localities.   EFFECTIVE DATE: This act shall take effect on the one hundred twentieth day after it shall have become a law.
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