Short-term rentals may involve new regulations, taxes resulting from a law recently passed by the state legislature | Iconic stories

For communities that already have registries, they can remain, but no new local short-term registries will be created once the bill comes into force. Short-term rental owners in these communities who have pre-existing records would need to stay current with both local and state systems.

It would also introduce a statewide tax requirement on these units, including both sales and occupancy taxes collected during residency. Occupancy taxes, or “bed taxes,” are levied specifically on hotels and motels, and the money generated is then transferred to a regional tourism promotion organization or government agency to promote the region as a travel destination. These taxes would be calculated and paid at the platform level, but people with individual rental apartments would have to run their own taxes and registration processes.

Supporters of the bill include Rep. Scott A. Gray, R-Watertown, who is the top Republican on the Assembly Tourism Committee and represents part of the 1,000 Islands and St. River shoreline. Lawrence and Lake Ontario, which has a strong tourism economy and many vacation rental units.

“What’s really important is that it provides transparency and all the information,” Gray said.

There is currently no concrete way to track the number of vacation rentals in a given community, said Corey Fram, director of tourism for the 1000 Islands International Tourism Council, which promotes Jefferson County and the 1000 Islands as a vacation destination.

The organization, a nonprofit that receives a portion of Jefferson County’s housing tax revenue for its operations, does not promote or advocate for specific legislation, but Fram said he would welcome many aspects of the bill approved last week, including a register that would provide a true number of holiday lets.

Fram said the industry currently relies on a combination of third-party reports to get a clear picture of how many units exist in a given area, and while they are fairly accurate, there are usually differences between sources that allow officials to only determine an approximate range, not the true number .

“There are dips and waves, so to speak,” he said. “There are things they miss that they pick up on, so it gives you a rough idea of ​​what’s going on.”

Fram said he has data that shows New York City, excluding New York City and Long Island, has between $900 million and $1.1 billion in vacation rental sales annually, meaning the total will likely be around $1 billion.

There are data for Jefferson County that show short-term rental sales are between $12 million and $13 million a year, but he said it would be best to say it’s a $12 million industry. However, it is not entirely certain that this law will change anything. .

“Registration legitimizes this activity,” he said. “I receive information on the performance of traditional hotels, but I really compare it to the information I receive on the hotel tax from the Jefferson County treasurer.”

Gray said he believes the short-term rental registry will also help local governments with planning by giving local leaders a clear picture of what properties are being used and where. This will allow law enforcement and emergency services to know how many people may be present at a given property, increasing public safety in the event of an emergency.

“In the Finger Lakes area, for example, they’re concerned that they don’t have enough water and sewer,” he said, noting that many vacation rentals welcome more guests than the home they’re using would typically support long-term or owner-occupier purposes , when usually only one family uses it at a time.

“Lake George is concerned about the failure of septic systems,” he said.

Assemblyman D. Billy Jones, D-Chateaugay Lake, whose district includes popular vacation resorts in southern Franklin County and much of the Northeast, also said he supports the legislation, which he believes will level the playing field between larger hotels and communities that can support them through short-term rentals and the communities that rely primarily on them for guest accommodation.

“Our municipalities wanted it, our hospitality and tourism industry wanted it,” he said.

Jones also said the registration component provides benefits to both planning and development authorities, especially emergency services.

“God forbid something happens, they want to know which facilities are rented and whether there are people in them,” he said.

There are also concerns that communities will be overburdened by short-term rentals, with much of what was once single-family housing becoming vacation rentals. Gray said a Lake George businessman bought a former motel only to convert it into apartments for the staff he employed, and many communities in the region complain of a dwindling housing stock. Gray said the registry would allow communities to monitor how much of their housing stock is used by non-residents, which could influence policy decisions at the local level.

Fram said collecting a tax on short-term rentals could also help boost tourism among local communities by providing taxes they’ve never had the chance to benefit from before.

“If you think about rural towns that don’t have a hotel or motel, but may have quite a few short-term rentals, especially along the St. River. Lawrence and Lake Ontario, these people will suddenly become players in destination marketing,” Fram said.

He also added that he believed that including short-term rental properties in the collection of bed tax could give owners a more significant position in promoting their businesses.

“Whether we want to admit it or not, in the world of destination marketing, hotels were paying the bills, so they were kind of getting the attention,” Fram said.

Some communities have already set up registries and collect taxes on short-term rentals, but in many cases this is done on a case-by-case basis and at the platform level. Both Lewis and St. County Lawrence have agreements to collect taxes on short-term rentals booked through AirBnB, but this does not include rentals made through other smaller platforms or independently.

Fram said this statewide system would cover a larger area, and by implementing it statewide at once, it eliminates the argument that neighboring communities that don’t collect the tax could be cheaper and more competitive.

Despite support for the bill from some lawmakers and industry representatives, short-term rental property owners are not happy with the new regulations affecting their industry. Amanda J. Miller operates a number of short-term vacation rentals along the shores of Lake Ontario and the St. River. Lawrence.

“It just adds insult to injury at this point,” she said.

Miller argued that short-term rentals are very different from hotel and motel rentals, which pay occupancy taxes. They are divided into different zones and property taxes are calculated differently. Their individual impact on the community is much smaller, and many people in the industry only have one or a few places to rent as opposed to the dozens or hundreds of spaces available in hotels.

“Taking a single-family home zoned for residential use and suddenly throwing it into mega hotels and motels is simply inappropriate,” she said.

She also said that the industry boom sparked by online platforms like AirBnB has passed, and short-term rentals are no longer as hot a topic in the industry as they once were.

“I got rid of some of mine because AirBnB has become so oversaturated and the business model is changing and evolving,” she said. “We are not a megacorporation making that kind of money. “Most people using AirBnB are just trying to pay for their properties.”

Miller said short-term rentals are not a new player in tourism – they have been a dominant feature of vacation destinations upstate and elsewhere in upstate New York for decades, and in some cases for almost 100 years.

She said short-term rentals, beyond the recent and now-past boom, were intended for a different clientele than a hotel: large groups, families and people with pets for whom a hotel would be too expensive, too uncomfortable or completely uninhabitable. stay in

Miller said it’s not a huge advantage for property owners to have tax issues handled by the platforms through which they take bookings – owners will still need to maintain their registrations and track taxes paid through the platform to ensure no violations.

Miller also said she wasn’t convinced that contributing short-term rentals to the bed tax and tourism marketing program would make them more represented in the materials produced.

“The hotel hates us,” she said. “And how to equalize the opportunities? How do you take my single-family home valued at $250,000 and put me in the same category as a $10 million waterfront hotel? I just don’t think it’s going to happen.”

Assemblyman Kenneth D. Blankenbush, R-Black River, was also sharply critical of the bill passed in Albany, saying in a statement after its passage that he believed it was a mistake that could impose burdensome regulations on an industry that in his rural area of ​​Tug Hill and the Mohawk Valley neighborhood may discourage people from using short-term rentals.

“Although the intentions are good and I believe in leveling the playing field, I was forced to vote against it. In short, the negatives outweigh the positives. New York State has proven ineffective in managing registries such as cannabis and ammunition databases. What difference would it make? A short-term rental registry would increase New Yorkers’ spending while reducing the profits they made from rent. “I support the idea behind this legislation, but its implementation by Albany Democrats will be doomed to failure,” he said in a statement sent after the bill was passed.

The bill approved by the House has not yet reached the governor’s desk for review. Her office is conducting a legal review to ensure the bill’s language does not violate any law or leave open loopholes to challenge the bill, which could be corrected through a New York chapter change or a class veto if the governor decides it is untenable. corrections.

Gray said he expects the governor may propose amendments to some sections of the bill that will be negotiated by the governor, the bill’s original author and Assembly and Senate leaders.