NY State Senate Bill 2017-S5978A

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 05, 2018	print number 5978b
Jun 05, 2018	amend and recommit to housing, construction and community development
Mar 29, 2018	print number 5978a
Mar 29, 2018	amend (t) and recommit to housing, construction and community development
Jan 03, 2018	referred to housing, construction and community development
May 09, 2017	referred to housing, construction and community development

Bill Amendments

Original

B (Active)

2017-S5978 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Multiple Residence Law
Laws Affected:: Add Art 2-A §§20 - 24, Mult Res L; amd §§1101, 1105, 1131 & 1132, add §1200, Tax L

2017-S5978 - Summary

Establishes regulations for the short term rental of private dwellings; defines terms; requires registration and safety precautions.

2017-S5978 - Sponsor Memo

                                 BILL NUMBER:  S5978

 TITLE OF BILL :  An act to amend the multiple residence law, in
relation to prohibiting the short term rental of private dwellings

 PURPOSE :

This legislation would regulate and establish standards for short term
rentals of private dwellings in New York State, that also requires a
level regulatory framework for such rentals and existing bed and
breakfast establishments.

 SUMMARY OF PROVISIONS :

Section 1 would prohibit the rental of private dwellings and
apartments for under 30 days statewide, with exceptions that would put
units in compliance with standards for hotels, motels, and bed and
breakfasts, including: where an owner stays in the short-term rental
unit for the duration of the stay; and, where the short-term rental
provider can provide proof of a real estate rental agreement or
contract, or proper tax collections (sales and occupancy), and proof
of liability insurance coverage during the rental period.

The section exempts owners who rent their unit as a short-term rental
if the owner earns $2,500 or less in aggregate annually for all rental
periods.

The section creates penalties for each violation of at least $1,000,
but not more than $25,000, with an additional penalty of up to $1,000
for each day that the violation is not corrected.

Section 2 authorizes this act to take effect on January 1, 2018,
provided that the act shall only apply in counties, cities, towns, or
villages that pass a local law to opt in to the legislation.

 JUSTIFICATION :

The developing sharing economy has led to many different online
platforms that affect various industries in New York State. One
example is home-sharing, which occurs when short-term rentals are
offered on an app or website for fewer than 30 days where the owner
may/may not vacate the property during a guest's stay.  Further, these
online platforms have been proven means of advertising for our
regulated hotels, motels, inns and bed & breakfasts in our State. To
that end, this legislation seeks to level the playing field between
users who market their homes/rooms with the regulated businesses they
are in direct completion with. Because of these online platforms, the
New York State tourism industry and in turn New York State (via the
collection of taxes) is losing critical revenue to short-term rentals.

Currently, short term rental units are largely unregulated in New
York. As personal homes and apartments, these units are not held to
the same taxes or fire and safety regulations as hotels, motels, or
bed and breakfasts. Since these units are not held to the same
standards as other lodging options, there is a concern for the guests
using these home-sharing services and this bill would provide needed
consumer protection.

New York State has become one of the country's top tourist
destinations, with many of its attractions located throughout Upstate
and on Long Island. These destinations draw millions of visitors
annually, creating a need for legitimate lodging options that include
home-sharing. This need creates vital jobs statewide, particularly in
regions where job growth has been stagnant.


This legislation would level the playing field for the tourism
industry, and would provide a regulated setting for short-term rentals
and allow for everyone from homeowners to operators to use these
online market providers while contributing to and protecting the
interests of all New Yorkers as well increasing the overwhelming
impact this industry (tourism) has on the state's economy.

 LEGISLATIVE HISTORY :

This is a new bill

 FISCAL IMPLICATIONS

None

 EFFECTIVE DATE :
This act shall take effect on January 1, 2018, provided that the act
shall only apply in counties, cities, towns, or villages that pass a
local law to opt in to the enactment of this law.

2017-S5978 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5978
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- 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 residence law, in relation to prohibiting
   the short term rental of private dwellings

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  multiple  residence  law  is amended by adding a new
 section 14 to read as follows:
   § 14. PROHIBITED RENTAL. 1. A PRIVATE DWELLING OR APARTMENT SHALL ONLY
 BE USED FOR PERMANENT RESIDENCE  PURPOSES.  FOR  THE  PURPOSES  OF  THIS
 SUBDIVISION,  "PERMANENT  RESIDENCE PURPOSES" SHALL CONSIST OF OCCUPANCY
 OF A DWELLING UNIT BY THE SAME  NATURAL  PERSON  OR  FAMILY  FOR  THIRTY
 CONSECUTIVE DAYS OR MORE, AND A PERSON OR FAMILY SO OCCUPYING A DWELLING
 UNIT SHALL BE REFERRED TO IN THIS SUBDIVISION AS THE PERMANENT OCCUPANTS
 OF  SUCH  DWELLING  UNIT.  THE  FOLLOWING USES OF A DWELLING UNIT BY THE
 PERMANENT OCCUPANTS THEREOF SHALL NOT BE DEEMED TO BE INCONSISTENT  WITH
 THE OCCUPANCY OF SUCH DWELLING UNIT FOR PERMANENT RESIDENCE PURPOSES:
   (A)  OCCUPANCY OF SUCH DWELLING UNIT FOR FEWER THAT THIRTY CONSECUTIVE
 DAYS BY OTHER NATURAL PERSONS LIVING WITHIN THE HOUSEHOLD OF THE  PERMA-
 NENT  OCCUPANTS,  SUCH  AS  HOUSE GUESTS, OR LAWFUL BOARDERS, ROOMERS OR
 LODGERS; OR
   (B) INCIDENTAL AND OCCASIONAL OCCUPANCY  OF  SUCH  DWELLING  UNIT  FOR
 FEWER  THAN  THIRTY  CONSECUTIVE  DAYS BY OTHER NATURAL PERSONS WHEN THE
 PERMANENT OCCUPANTS ARE TEMPORARILY ABSENT FOR PERSONAL REASONS, SUCH AS
 VACATION OR MEDICAL  TREATMENT,  PROVIDED  THAT  THERE  IS  NO  MONETARY
 COMPENSATION PAID TO THE PERMANENT OCCUPANTS FOR SUCH OCCUPANCY; OR
   (C) TO ANY INDIVIDUAL OR OWNER WHO RENTS OUT THEIR PRIVATE DWELLING OR
 APARTMENT  FOR FEWER THAN THIRTY CONSECUTIVE DAYS WHO EARNS NO MORE THAN
 TWENTY-FIVE HUNDRED DOLLARS PER ANNUM IN TOTAL FOR ALL  SUCH  APPLICABLE
 RENTAL PERIODS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03665-01-7

 S. 5978                             2
 
   2.  (A) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRA-
 RY, THE APPLICATION OF THIS SECTION  SHALL  NOT  APPLY  TO  ANY  OF  THE
 FOLLOWING:
   I.  A  PRIVATE  DWELLING OR APARTMENT WHOSE PERMANENT RESIDENT, FAMILY
 MEMBER, OR OWNER REMAINS IN THE PRIVATE DWELLING OR  APARTMENT  FOR  THE
 DURATION  OF  ANY  RENTAL  PERIOD,  PROVIDED  HOWEVER, THAT SUCH PRIVATE
 DWELLING OR APARTMENT IS IN COMPLIANCE WITH THE STANDARDS SET  FORTH  IN
 THE LAW FOR BED AND BREAKFAST ESTABLISHMENTS; OR
   II.  FOR  ANY RENTAL PERIOD LASTING LESS THAN THIRTY CONSECUTIVE DAYS,
 PROVIDED THAT A PERMANENT RESIDENT, FAMILY MEMBER,  OR  OWNER  CAN  SHOW
 PROOF  OF  A  LICENSED  REAL  ESTATE  RENTAL  AGREEMENT  OR CONTRACT, OR
 DOCUMENTATION SHOWING PROPER REPORTING  OF  TAX  COLLECTIONS  FROM  SUCH
 RENTALS,  AND  THE NECESSARY INSURANCE TO SHOW PROPER LIABILITY COVERAGE
 DURING SUCH RENTAL PERIODS.
   (B) FOR PURPOSES OF THIS SECTION PROPER REPORTING OF  TAX  COLLECTIONS
 SHALL INCLUDE APPLICABLE STATE AND LOCAL OCCUPANCY AND SALES TAXES.
   3.  NOTWITHSTANDING  THE  PROVISIONS OF ANY OTHER LAW TO THE CONTRARY,
 ANYONE FOUND IN VIOLATION OF THE PROVISIONS OF  THIS  SECTION  SHALL  BE
 SUBJECT  TO  A  CIVIL  PENALTY OF NOT LESS THAT ONE THOUSAND DOLLARS NOR
 MORE THAN TWENTY-FIVE THOUSAND DOLLARS FOR EACH VIOLATION.  IN  ADDITION
 TO  SUCH  CIVIL PENALTY, A SEPARATE ADDITIONAL PENALTY MAY BE IMPOSED OF
 NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH DAY THAT  THE  VIOLATION  IS
 NOT CORRECTED.
   §  2.  This  act shall take effect January 1, 2018; provided, however,
 that this act shall only apply to a governing body  of  any  county  not
 wholly included within a city, a city with a population of less than one
 million,  or a town or village which enacts a local law to adhere to the
 provisions of this act.

2017-S5978A - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Multiple Residence Law
Laws Affected:: Add Art 2-A §§20 - 24, Mult Res L; amd §§1101, 1105, 1131 & 1132, add §1200, Tax L

2017-S5978A - Summary

Establishes regulations for the short term rental of private dwellings; defines terms; requires registration and safety precautions.

2017-S5978A - Sponsor Memo

                                
 
BILL NUMBER: S5978A

SPONSOR: FUNKE
 
TITLE OF BILL:  An act to amend the multiple residence law and the tax
law, in relation to short-term residential rental of private dwellings

 
PURPOSE:

This legislation would regulate and establish standards for short term
rentals of private dwellings in New York State, that also requires a
level regulatory framework for such rentals and existing bed and break-
fast establishments.

 
SUMMARY OF PROVISIONS:

Section 1: adds a new article 2-A to the multiple residence law. It
provides for definitions, a registration process, exception language and
penalties.

Section 2: amends the tax law for purposes of collecting tax on short-
term rental units

Section 3: amends the tax law to add rent for occupancy of a room or
rooms from a hosting platform as taxable

Section 4: amends the tax law to add hosting platforms to the list of
those who are required to collect tax

Section 5: amends the tax law specifying the role of a hosting platform
in collecting taxes and retaining records

Section 6: amends the tax law by changing the definition of a "hotel" to
include short-term rental units

Section 7: provides for a county, city, town or village government to
enact a local law prohibiting or limiting the listing or use of short-
term residential rental units

Section 8: provides an effective date of 120 days after it becomes law

 
JUSTIFICATION:

The developing sharing economy has led to many different online plat-
forms that affect various industries in New York State. One example is
home-sharing, which occurs when short-term rentals are offered on an app
or website for fewer than 30 days where the owner may/may not vacate the
property during a guest's stay. This legislation seeks to level the
playing field between users who market their homes/rooms on short-term
rental platforms with the regulated businesses in the tourism industry
that provide regulated lodging options to consumers throughout the
State. Since online platforms are not required to pay sales and occupan-
cy taxes throughout New York, the tourism industry and, in turn New York
State (via the collection of taxes) is losing critical revenue to unreg-
ulated and untaxed short-term rentals.

Short term rental units are largely unregulated in New York.  As
personal homes and apartments, the units are not held to the same occu-
pancy and sales tax requirements or fire and safety regulations as
hotels, motels, or bed and breakfasts. Therefore, there is a legitimate
safety concern for the guests using short-term rental services that this
legislation addresses. The bill also addresses tax concerns that will
bring additional revenue to the State and local governments through
occupancy and sales tax collection.

New York State has become one of the country's top tourist destinations,
with many of its attractions located throughout Upstate and on Long
Island. These destinations draw millions of visitors annually, creating
a need for legitimate lodging options that include home-sharing. This
need creates vital jobs statewide, particularly in regions where job
growth has been stagnant.

This legislation would level the playing field for the tourism industry,
and would provide a regulated setting for short-term rentals statewide.
Further, the legislation protects the interests of all New Yorkers, and
will increase the already overwhelming impact that the tourism industry
has on New York's economy.

 
LEGISLATIVE HISTORY:

This is a new bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2017-S5978A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5978--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  --  recommitted  to  the Committee on Housing,
   Construction and Community Development in accordance with Senate  Rule
   6,  sec. 8 -- committee discharged, bill amended, 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:
 
   Section 1. The multiple residence law is amended by adding a new arti-
 cle 2-A to read as follows:
                                ARTICLE 2-A
                    SHORT-TERM RESIDENTIAL RENTAL UNITS
 SECTION 20. DEFINITIONS.
         21. SHORT-TERM RESIDENTIAL RENTAL UNITS; REGULATION.
         22. REGISTRATION.
         23. EXCEPTION.
         24. PENALTIES.
   § 20. DEFINITIONS. FOR THE PURPOSES OF  THIS  ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "SHORT-TERM RESIDENTIAL RENTAL UNIT" MEANS AN ENTIRE DWELLING UNIT,
 OR  A ROOM, GROUP OF ROOMS, OTHER LIVING OR SLEEPING SPACE, OR ANY OTHER
 SPACE, MADE AVAILABLE FOR RENT BY GUESTS FOR LESS  THAN  THIRTY  CONSEC-
 UTIVE DAYS, WHERE:
   (A)  THE UNIT IS OFFERED FOR TOURIST OR TRANSIENT USE BY THE PERMANENT
 RESIDENT OF THE RESIDENTIAL UNIT;
   (B) THE PERMANENT RESIDENT IS A NATURAL PERSON; AND
   (C) THE PERMANENT RESIDENT HAS REGISTERED  THE  RESIDENTIAL  UNIT  AND
 MAINTAINS  GOOD  STANDING  ON THE SHORT-TERM RESIDENTIAL RENTAL REGISTRY
 MAINTAINED BY THE DEPARTMENT OF STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03665-06-8

 S. 5978--A                          2
 
   2. "SHORT-TERM RENTAL HOST" MEANS AN OWNER OR TENANT OF  A  SHORT-TERM
 RENTAL UNIT WHO RENTS SUCH UNIT TO GUESTS.
   3.  "HOSTING  PLATFORM"  MEANS  A PERSON OR ENTITY WHO, PURSUANT TO AN
 AGREEMENT WITH A SHORT-TERM RENTAL HOST:
   (A) PROVIDES A PLATFORM FOR COMPENSATION  THROUGH  WHICH  UNAFFILIATED
 THIRD  PARTY SHORT-TERM RENTAL HOSTS CAN OFFER TO RENT SHORT-TERM RENTAL
 UNITS; AND
   (B) COLLECTS A FEE IN CONNECTION WITH EITHER:
   (I) PROVIDING THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE  OFFER  OF
 OCCUPANCY OF A SHORT-TERM RENTAL UNIT IS ACCEPTED; OR
   (II) PROVIDING THE FORUM IN WHICH A SHORT-TERM RENTAL HOST CAN LIST OR
 ADVERTISE SPACE IN A SHORT-TERM RENTAL UNIT.
   § 21. SHORT-TERM RESIDENTIAL RENTAL UNITS; REGULATION. 1. A SHORT-TERM
 RENTAL  HOST  MAY  OPERATE  A  DWELLING UNIT AS A SHORT-TERM RESIDENTIAL
 RENTAL UNIT PROVIDED SUCH DWELLING UNIT:
   (A) IS REGISTERED IN ACCORDANCE WITH SECTION TWENTY-TWO OF THIS  ARTI-
 CLE;
   (B)  IS NOT USED TO PROVIDE SINGLE ROOM OCCUPANCY AS DEFINED BY SUBDI-
 VISION FORTY-FOUR OF SECTION FOUR OF THIS CHAPTER;
   (C) INCLUDES A CONSPICUOUSLY POSTED EVACUATION DIAGRAM IDENTIFYING ALL
 MEANS OF EGRESS FROM THE UNIT AND THE BUILDING IN WHICH IT IS LOCATED;
   (D) INCLUDES A CONSPICUOUSLY POSTED LIST OF  EMERGENCY  PHONE  NUMBERS
 FOR POLICE, FIRE, AND POISON CONTROL;
   (E) HAS A WORKING FIRE-EXTINGUISHER; AND
   (F) IS INSURED BY AN INSURER LICENSED TO WRITE INSURANCE IN THIS STATE
 FOR  AT LEAST THE VALUE OF THE DWELLING, PLUS A MINIMUM OF THREE HUNDRED
 THOUSAND DOLLARS COVERAGE FOR THIRD PARTY CLAIMS OF PROPERTY  DAMAGE  OR
 BODILY  INJURY  THAT  ARISE  OUT OF THE OPERATION OF A SHORT-TERM RENTAL
 UNIT. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  NO  LICENSED  INSURER
 SHALL BE REQUIRED TO PROVIDE SUCH COVERAGE.
   2.  OCCUPANCIES  OF A SHORT-TERM RENTAL UNIT SHALL BE SUBJECT TO TAXES
 AND FEES PURSUANT TO ARTICLES TWENTY-EIGHT AND TWENTY-NINE  OF  THE  TAX
 LAW AND APPLICABLE LOCAL LAWS.
   3.  SHORT-TERM  RENTAL  HOSTS  SHALL MAINTAIN RECORDS RELATED TO GUEST
 STAYS FOR ONE YEAR, INCLUDING THE DATE OF EACH BOOKING AND THE  IDENTITY
 AND  NUMBER  OF  GUESTS,  AND  RECORDS  RELATED TO THEIR REGISTRATION AS
 SHORT-TERM RENTAL HOSTS WITH  THE  DIVISION  OF  HOUSING  AND  COMMUNITY
 RENEWAL.
   4. HOSTING PLATFORMS SHALL MAINTAIN RECORDS RELATED TO GUEST STAYS FOR
 ONE YEAR, INCLUDING THE DATE OF EACH BOOKING AND THE IDENTITY AND NUMBER
 OF  GUESTS.  HOSTING PLATFORMS SHALL MAKE ALL RELEVANT RECORDS AVAILABLE
 TO THE DEPARTMENT OF STATE CONSISTENT IN RESPONSE TO VALID  LEGAL  PROC-
 ESS.
   5.  SHORT-TERM  RENTAL  HOSTS  MAY  ONLY LIST ONE UNIT ON A SHORT-TERM
 RENTAL PLATFORM.
   § 22. REGISTRATION. 1. SHORT-TERM RENTAL HOSTS SHALL  BE  REQUIRED  TO
 REGISTER A SHORT-TERM RESIDENTIAL UNIT WITH THE DEPARTMENT OF STATE.
   2.  REGISTRATION  SHALL  BE  VALID FOR TWO YEARS, AFTER WHICH TIME THE
 SHORT-TERM RENTAL HOST MAY RENEW HIS OR HER  REGISTRATION  IN  A  MANNER
 PRESCRIBED  BY  THE  DEPARTMENT  OF  STATE.  THE DEPARTMENT OF STATE MAY
 REVOKE THE REGISTRATION OF A SHORT-TERM RENTAL HOST UPON A DETERMINATION
 THAT THE SHORT-TERM RENTAL HOST HAS VIOLATED ANY PROVISION OF THIS ARTI-
 CLE AT LEAST THREE TIMES IN TWO CALENDAR YEARS, AND MAY  DETERMINE  THAT
 THE  SHORT-TERM  RENTAL  HOST SHALL BE INELIGIBLE FOR REGISTRATION FOR A
 PERIOD OF UP TO TWELVE MONTHS FROM  THE  DATE  THE  THIRD  VIOLATION  IS
 DETERMINED TO HAVE OCCURRED.

 S. 5978--A                          3
 
   3.  THE DEPARTMENT OF STATE SHALL SET A FEE FOR SHORT-TERM RESIDENTIAL
 RENTAL UNIT REGISTRATION.
   §  23.  EXCEPTION.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO
 THE CONTRARY, THIS ARTICLE SHALL NOT APPLY TO:
   1. A PRIVATE DWELLING OR APARTMENT WHOSE  PERMANENT  RESIDENT,  FAMILY
 MEMBER,  OR  OWNER  REMAINS IN THE PRIVATE DWELLING OR APARTMENT FOR THE
 DURATION OF ANY RENTAL  PERIOD,  PROVIDED  HOWEVER,  THAT  SUCH  PRIVATE
 DWELLING  OR  APARTMENT IS IN COMPLIANCE WITH THE STANDARDS SET FORTH IN
 THE LAW FOR BED AND BREAKFAST ESTABLISHMENTS; OR
   2. INCIDENTAL AND OCCASIONAL OCCUPANCY OF SUCH DWELLING UNIT FOR FEWER
 THAN THIRTY CONSECUTIVE DAYS BY OTHER NATURAL PERSONS WHEN THE PERMANENT
 OCCUPANTS ARE TEMPORARILY ABSENT FOR PERSONAL REASONS, SUCH AS  VACATION
 OR  MEDICAL  TREATMENT,  PROVIDED THAT THERE IS NO MONETARY COMPENSATION
 PAID TO THE PERMANENT OCCUPANTS FOR SUCH OCCUPANCY; OR
   3. TO ANY INDIVIDUAL OR OWNER WHO RENTS OUT THEIR PRIVATE DWELLING  OR
 APARTMENT  FOR FEWER THAN THIRTY CONSECUTIVE DAYS WHO EARNS NO MORE THAN
 TWENTY-FIVE HUNDRED DOLLARS PER ANNUM IN TOTAL FOR ALL  SUCH  APPLICABLE
 RENTAL PERIODS.
   §  24.  PENALTIES.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO
 THE CONTRARY, ANYONE FOUND IN VIOLATION OF THE PROVISIONS OF THIS  ARTI-
 CLE  SHALL  BE  SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN ONE THOUSAND
 DOLLARS NOR MORE THAN TWENTY-FIVE THOUSAND DOLLARS FOR  EACH  VIOLATION.
 IN  ADDITION TO SUCH CIVIL PENALTY, A SEPARATE ADDITIONAL PENALTY MAY BE
 IMPOSED OF NOT MORE THAN ONE THOUSAND DOLLARS  FOR  EACH  DAY  THAT  THE
 VIOLATION IS NOT CORRECTED.
   § 2. Subdivision (c) of section 1101 of the tax law, as added by chap-
 ter  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, is amended to read as follows:
   (c)  When  used  in  this  article for the purposes of the tax imposed
 under subdivision (e) of section eleven hundred five  OF  THIS  ARTICLE,
 AND  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE, the
 following terms shall mean:
   (1) Hotel. A building or portion of it which  is  regularly  used  and
 kept  open  as such for the lodging of guests. The term "hotel" includes
 an apartment hotel, a motel, boarding house  or  club,  whether  or  not
 meals are served, AND SHORT-TERM RENTAL UNITS.
   (2)  Occupancy.  The  use  or  possession,  or the right to the use or
 possession, of any room in a hotel. "Right to  the  use  or  possession"
 includes the rights of a room remarketer as described in paragraph eight
 of this subdivision.
   (3)  Occupant.  A person who, for a consideration, uses, possesses, or
 has the right to use or possess, any room in a hotel  under  any  lease,
 concession,  permit, right of access, license to use or other agreement,
 or otherwise. "Right to use or possess" includes the rights  of  a  room
 remarketer as described in paragraph eight of this subdivision.
   (4)  Operator. Any person operating a hotel. Such term shall include a
 room remarketer and such room remarketer shall be deemed  to  operate  a
 hotel,  or  portion  thereof,  with respect to which such person has the
 rights of a room remarketer.
   (5) Permanent resident. Any occupant of any room or rooms in  a  hotel
 for  at  least  ninety  consecutive days shall be considered a permanent
 resident with regard to the period of such occupancy.
   (6) Rent. The consideration  received  for  occupancy,  including  any
 service or other charge or amount required to be paid as a condition for

 S. 5978--A                          4
 
 occupancy,  valued  in money, whether received in money or otherwise and
 whether received by the  operator  [or],  A  HOSTING  PLATFORM,  a  room
 remarketer or another person on behalf of [either] ANY of them.
   (7)  Room.  Any  room or rooms of any kind in any part or portion of a
 hotel, which is available for or let out for any purpose  other  than  a
 place of assembly.
   (8)  Room remarketer. A person who reserves, arranges for, conveys, or
 furnishes occupancy, whether directly or indirectly, to an occupant  for
 rent  in  an amount determined by the room remarketer, directly or indi-
 rectly, whether pursuant to a written or other agreement. Such  person's
 ability  or  authority to reserve, arrange for, convey, or furnish occu-
 pancy, directly or indirectly, and to determine rent therefor, shall  be
 the  "rights of a room remarketer". A room remarketer is not a permanent
 resident with respect to a room for which such person has the rights  of
 a room remarketer.  THIS TERM DOES NOT INCLUDE A HOSTING PLATFORM.
   (9) SHORT-TERM RENTAL UNIT. A ROOM, GROUP OF ROOMS, OR OTHER LIVING OR
 SLEEPING  SPACE,  OR ANY OTHER SPACE LET TO OCCUPANTS, INCLUDING BUT NOT
 LIMITED TO PRIVATE DWELLINGS, RESIDENCES, OR  BUILDINGS  USED  AS  RESI-
 DENCES.
   (10)  HOSTING  PLATFORM. A PERSON OR ENTITY WHO, PURSUANT TO AN AGREE-
 MENT WITH AN OPERATOR OF A HOTEL:
   (I) PROVIDES A PLATFORM FOR COMPENSATION THROUGH WHICH AN UNAFFILIATED
 THIRD PARTY HOTEL OPERATOR OFFERS TO RENT SPACE IN A HOTEL; AND
   (II) COLLECTS A FEE IN CONNECTION WITH EITHER:
   (A) PROVIDING THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE  OFFER  OF
 OCCUPANCY OF A HOTEL ROOM IS ACCEPTED; OR
   (B)  PROVIDING  THE FORUM IN WHICH A HOTEL OPERATOR CAN LIST OR ADVER-
 TISE SPACE IN A HOTEL FOR OCCUPANCY.
   § 3. Subdivision (e) of section 1105 of the  tax  law  is  amended  by
 adding a new paragraph 3 to read as follows:
   (3) THE RENT FOR EVERY OCCUPANCY OF A ROOM OR ROOMS IN A HOTEL OFFERED
 FOR  RENT  THROUGH  A  HOSTING  PLATFORM, AS DEFINED IN PARAGRAPH TEN OF
 SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS  ARTICLE,  REGARD-
 LESS  OF  WHETHER IT IS FURNISHED, LIMITED TO A SINGLE FAMILY OCCUPANCY,
 OR PROVIDES HOUSEKEEPING, FOOD, OR OTHER COMMON HOTEL SERVICES,  INCLUD-
 ING, BUT NOT LIMITED TO, ENTERTAINMENT OR PLANNED ACTIVITIES.
   § 4. Subdivision 1 of section 1131 of the tax law, as amended by chap-
 ter 576 of the laws of 1994, is amended to read as follows:
   (1)  "Persons  required to collect tax" or "person required to collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal property or services; every  recipient  of  amusement  charges;
 [and]  every  operator  of  a  hotel[.];  AND  HOSTING  PLATFORMS UNLESS
 RELIEVED OF SUCH OBLIGATION PURSUANT TO PARAGRAPH THREE  OF  SUBDIVISION
 (L)  OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART. Said terms shall
 also include any officer, director or employee of a corporation or of  a
 dissolved  corporation,  any  employee of a partnership, any employee or
 manager of a limited liability company, or any employee of an individual
 proprietorship who as such officer, director,  employee  or  manager  is
 under a duty to act for such corporation, partnership, limited liability
 company  or  individual proprietorship in complying with any requirement
 of this article; and any member of a partnership  or  limited  liability
 company.    Provided, however, that any person who is a vendor solely by
 reason of clause (D) or (E) of subparagraph  (i)  of  paragraph  (8)  of
 subdivision  (b) of section eleven hundred one OF THIS ARTICLE shall not
 be a "person required to collect any tax imposed by this article"  until
 twenty  days  after  the date by which such person is required to file a

 S. 5978--A                          5
 
 certificate of registration pursuant to section eleven  hundred  thirty-
 four OF THIS PART.
   §  5.  Section 1132 of the tax law is amended by adding a new subdivi-
 sion (l) to read as follows:
   (L)(1) A HOSTING PLATFORM SHALL BE REQUIRED TO (I)  COLLECT  FROM  THE
 OCCUPANTS  THE  APPLICABLE  TAXES  ARISING  FROM  SUCH OCCUPANCIES; (II)
 COMPLY WITH ALL THE PROVISIONS OF THIS ARTICLE AND  ARTICLE  TWENTY-NINE
 OF  THIS  CHAPTER  AND  ANY  REGULATIONS ADOPTED PURSUANT THERETO; (III)
 REGISTER TO COLLECT TAX UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS
 PART; AND (IV) RETAIN RECORDS AND INFORMATION AS REQUIRED BY THE COMMIS-
 SIONER  AND  COOPERATE  WITH  THE  COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE OF TAX IMPOSED, COLLECTED, OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) IN CARRYING OUT THE OBLIGATIONS  IMPOSED  UNDER  THIS  SECTION,  A
 HOSTING  PLATFORM  SHALL HAVE ALL THE DUTIES, BENEFITS, AND ENTITLEMENTS
 OF A PERSON REQUIRED TO COLLECT TAX UNDER THIS ARTICLE AND ARTICLE TWEN-
 TY-NINE OF THIS CHAPTER WITH RESPECT TO THE OCCUPANCIES GIVING  RISE  TO
 THE TAX OBLIGATION, INCLUDING THE RIGHT TO ACCEPT A CERTIFICATE OR OTHER
 DOCUMENTATION  FROM AN OCCUPANT SUBSTANTIATING AN EXEMPTION OR EXCLUSION
 FROM TAX, AS IF SUCH HOSTING PLATFORM WERE THE  OPERATOR  OF  THE  HOTEL
 WITH  RESPECT  TO  SUCH  OCCUPANCY,  INCLUDING  THE RIGHT TO RECEIVE THE
 REFUND AUTHORIZED BY SUBDIVISION (E) OF  THIS  SECTION  AND  THE  CREDIT
 ALLOWED  BY  SUBDIVISION  (F)  OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF
 THIS PART.
   (3) AN OPERATOR OF A HOTEL IS NOT A PERSON REQUIRED TO COLLECT TAX FOR
 PURPOSES OF THIS PART WITH RESPECT TO TAXES IMPOSED UPON OCCUPANCIES  OF
 HOTELS IF:
   (I)  THE OPERATOR OF THE HOTEL CAN SHOW THAT THE OCCUPANCY WAS FACILI-
 TATED BY A HOSTING PLATFORM WHO IS REGISTERED TO COLLECT TAX PURSUANT TO
 SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART; AND
   (II) THE OPERATOR OF THE HOTEL ACCEPTED FROM THE  HOSTING  PLATFORM  A
 PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE
 COMMISSIONER  CERTIFYING  THAT THE HOSTING PLATFORM HAS AGREED TO ASSUME
 THE TAX COLLECTION AND FILING RESPONSIBILITIES OF THE  OPERATOR  OF  THE
 HOTEL; AND
   (III) ANY FAILURE OF THE HOSTING PLATFORM TO COLLECT THE PROPER AMOUNT
 OF TAX WITH RESPECT TO SUCH OCCUPANCY WAS NOT THE RESULT OF THE OPERATOR
 OF  THE  HOTEL  PROVIDING INCORRECT INFORMATION TO THE HOSTING PLATFORM,
 WHETHER INTENTIONAL OR UNINTENTIONAL.
   THIS PROVISION SHALL BE  ADMINISTERED  IN  A  MANNER  CONSISTENT  WITH
 SUBPARAGRAPH  (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS
 IF A CERTIFICATE OF COLLECTION WERE A RESALE  OR  EXEMPTION  CERTIFICATE
 FOR  PURPOSES  OF  SUCH  SUBPARAGRAPH,  INCLUDING  WITH  REGARD  TO  THE
 COMPLETENESS OF SUCH CERTIFICATE OF COLLECTION AND  THE  TIMING  OF  ITS
 ACCEPTANCE  BY  THE  OPERATOR  OF THE HOTEL; PROVIDED HOWEVER, THAT WITH
 REGARD TO ANY OCCUPANCIES SOLD BY AN OPERATOR  OF  THE  HOTEL  THAT  ARE
 FACILITATED  BY A HOSTING PLATFORM WHO IS AFFILIATED WITH SUCH OPERATOR,
 THE OPERATOR SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT  FOR
 SUCH  HOSTING PLATFORM FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN
 HUNDRED THIRTY-ONE OF THIS PART.
   (4) THE COMMISSIONER MAY, IN HIS OR HER  DISCRETION  DEVELOP  STANDARD
 LANGUAGE,  OR APPROVE LANGUAGE DEVELOPED BY A HOSTING PLATFORM, IN WHICH
 THE HOSTING PLATFORM OBLIGATES ITSELF TO COLLECT THE TAX  ON  BEHALF  OF
 ALL THE OPERATORS OF HOTELS.
   (5)  IN THE EVENT AN OPERATOR OF A HOTEL IS A ROOM REMARKETER, AND ALL
 OTHER PROVISIONS OF THIS SUBDIVISION ARE MET SUCH THAT A  HOSTING  PLAT-

 S. 5978--A                          6

 FORM  IS  OBLIGATED  TO  COLLECT  TAX,  AND  DOES IN FACT COLLECT TAX AS
 EVIDENCED BY THE BOOKS AND RECORDS OF SUCH HOSTING  PLATFORM,  THEN  THE
 PROVISIONS OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS
 ARTICLE SHALL BE APPLICABLE.
   §  6.  The  tax law is amended by adding a new section 1200 to read as
 follows:
   § 1200. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "HOTEL" SHALL MEAN A BUILD-
 ING OR PORTION OF SUCH BUILDING WHICH IS REGULARLY USED AND KEPT OPEN AS
 SUCH  FOR THE LODGING OF GUESTS, INCLUDING: (I) AN APARTMENT HOTEL; (II)
 A MOTEL, (III) A BOARDING HOUSE  OR  CLUB,  WHETHER  OR  NOT  MEALS  ARE
 SERVED,  AND  (IV)  SHORT-TERM  RESIDENTIAL  RENTAL  UNITS AS DEFINED IN
 SUBDIVISION ONE OF SECTION TWENTY OF THE MULTIPLE RESIDENCE LAW.
   § 7. Notwithstanding any other provisions of law to  the  contrary,  a
 county,  city, town, or village government may enact a local law prohib-
 iting or limiting the listing or use of  short-term  residential  rental
 units.
   § 8. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

2017-S5978B (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Multiple Residence Law
Laws Affected:: Add Art 2-A §§20 - 24, Mult Res L; amd §§1101, 1105, 1131 & 1132, add §1200, Tax L

2017-S5978B (ACTIVE) - Summary

Establishes regulations for the short term rental of private dwellings; defines terms; requires registration and safety precautions.

2017-S5978B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5978B

SPONSOR: FUNKE
 
TITLE OF BILL:  An act to amend the multiple residence law and the tax
law, in relation to short-term residential rental of private dwellings

 
PURPOSE:

This legislation would regulate and establish standards for short term
rentals of private dwellings in New York State, that also requires a
level regulatory framework for such rentals and existing bed and break-
fast establishments.

 
SUMMARY OF PROVISIONS:

Section 1: adds a new article 2-A to the multiple residence law. It
provides for definitions, a registration process, exception language and
penalties.

Section 2: amends the tax law for purposes of collecting tax on short-
term rental units

Section 3: amends the tax law to add rent for occupancy of a room or
rooms from a hosting platform as taxable

Section 4: amends the tax law to add hosting platforms to the list of
those who are required to collect tax

Section 5: amends the tax law specifying the role of a hosting platform
in collecting taxes and retaining records

Section 6: amends the tax law by changing the definition of a "hotel" to
include short-term rental units

Section 7: provides for a county, city, town or village government to
enact a local law prohibiting or limiting the listing or use of short-
term residential rental units

Section 8: provides an effective date of 120 days after it becomes law

 
JUSTIFICATION:

The developing sharing economy has led to many different online plat-
forms that affect various industries in New York State. One example is
home-sharing, which occurs when short-term rentals are offered on an app
or website for fewer than 30 days where the owner may/may not vacate the
property during a guest's stay. This legislation seeks to level the
playing field between users who market their homes/rooms on short-term
rental platforms with the regulated businesses in the tourism industry
that provide regulated lodging options to consumers throughout the
State. Since online platforms are not required to pay sales and occupan-
cy taxes throughout New York, the tourism industry and, in turn New York
State (via the collection of taxes) is losing critical revenue to unreg-
ulated and untaxed short-term rentals.

Short term rental units are largely unregulated in New York. As personal
homes and apartments, the units are not held to the same occupancy and
sales tax requirements or fire and safety regulations as hotels, motels,
or bed and breakfasts. Therefore, there is a legitimate safety concern
for the guests using short-term rental services that this legislation
addresses. The bill also addresses tax concerns that will bring addi-
tional revenue to the State and local governments through occupancy and
sales tax collection.

New York State has become one of the country's top tourist destinations,
with many of its attractions located throughout Upstate and on Long
Island. These destinations draw millions of visitors annually, creating
a need for legitimate lodging options that include home-sharing. This
need creates vital jobs statewide, particularly in regions where job
growth has been stagnant.

This legislation would level the playing field for the tourism industry,
and would provide a regulated setting for short-term rentals statewide.
Further, the legislation protects the interests of all New Yorkers, and
will increase the already overwhelming impact that the tourism industry
has on New York's economy.

 
LEGISLATIVE HISTORY:

This is a new bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2017-S5978B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5978--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  --  recommitted  to  the Committee on Housing,
   Construction and Community Development in accordance with Senate  Rule
   6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said  committee  --  committee  discharged,
   bill  amended,  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:
 
   Section 1. The multiple residence law is amended by adding a new arti-
 cle 2-A to read as follows:
                                ARTICLE 2-A
                    SHORT-TERM RESIDENTIAL RENTAL UNITS
 SECTION 20. DEFINITIONS.
         21. SHORT-TERM RESIDENTIAL RENTAL UNITS; REGULATION.
         22. REGISTRATION.
         23. EXCEPTION.
         24. PENALTIES.
   § 20. DEFINITIONS. FOR THE PURPOSES OF  THIS  ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "SHORT-TERM RESIDENTIAL RENTAL UNIT" MEANS AN ENTIRE DWELLING UNIT,
 OR  A ROOM, GROUP OF ROOMS, OTHER LIVING OR SLEEPING SPACE, OR ANY OTHER
 SPACE, MADE AVAILABLE FOR RENT BY GUESTS FOR LESS  THAN  THIRTY  CONSEC-
 UTIVE DAYS, WHERE:
   (A)  THE UNIT IS OFFERED FOR TOURIST OR TRANSIENT USE BY THE PERMANENT
 RESIDENT OF THE RESIDENTIAL UNIT;
   (B) THE PERMANENT RESIDENT IS A NATURAL PERSON; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03665-09-8

 S. 5978--B                          2
 
   (C) THE PERMANENT RESIDENT HAS REGISTERED  THE  RESIDENTIAL  UNIT  AND
 MAINTAINS  GOOD  STANDING  ON THE SHORT-TERM RESIDENTIAL RENTAL REGISTRY
 MAINTAINED BY THE DEPARTMENT OF STATE.
   2.  "SHORT-TERM  RENTAL HOST" MEANS AN OWNER OR TENANT OF A SHORT-TERM
 RENTAL UNIT WHO RENTS SUCH UNIT TO GUESTS.
   3. "HOSTING PLATFORM" MEANS A PERSON OR ENTITY  WHO,  PURSUANT  TO  AN
 AGREEMENT WITH A SHORT-TERM RENTAL HOST:
   (A)  PROVIDES  A  PLATFORM FOR COMPENSATION THROUGH WHICH UNAFFILIATED
 THIRD PARTY SHORT-TERM RENTAL HOSTS CAN OFFER TO RENT SHORT-TERM  RENTAL
 UNITS; AND
   (B) COLLECTS A FEE IN CONNECTION WITH EITHER:
   (I)  PROVIDING  THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE OFFER OF
 OCCUPANCY OF A SHORT-TERM RENTAL UNIT IS ACCEPTED; OR
   (II) PROVIDING THE FORUM IN WHICH A SHORT-TERM RENTAL HOST CAN LIST OR
 ADVERTISE SPACE IN A SHORT-TERM RENTAL UNIT.
   § 21. SHORT-TERM RESIDENTIAL RENTAL UNITS; REGULATION. 1. A SHORT-TERM
 RENTAL HOST MAY OPERATE A DWELLING  UNIT  AS  A  SHORT-TERM  RESIDENTIAL
 RENTAL UNIT PROVIDED SUCH DWELLING UNIT:
   (A)  IS REGISTERED IN ACCORDANCE WITH SECTION TWENTY-TWO OF THIS ARTI-
 CLE;
   (B) IS NOT USED TO PROVIDE SINGLE ROOM OCCUPANCY AS DEFINED BY  SUBDI-
 VISION FORTY-FOUR OF SECTION FOUR OF THIS CHAPTER;
   (C) INCLUDES A CONSPICUOUSLY POSTED EVACUATION DIAGRAM IDENTIFYING ALL
 MEANS OF EGRESS FROM THE UNIT AND THE BUILDING IN WHICH IT IS LOCATED;
   (D)  INCLUDES  A  CONSPICUOUSLY POSTED LIST OF EMERGENCY PHONE NUMBERS
 FOR POLICE, FIRE, AND POISON CONTROL;
   (E) HAS A WORKING FIRE-EXTINGUISHER; AND
   (F) IS INSURED BY AN INSURER LICENSED TO WRITE INSURANCE IN THIS STATE
 OR PROCURED BY A DULY LICENSED EXCESS LINE BROKER  PURSUANT  TO  SECTION
 TWO  THOUSAND ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW FOR AT LEAST THE
 VALUE OF THE DWELLING, PLUS A MINIMUM OF THREE HUNDRED THOUSAND  DOLLARS
 COVERAGE FOR THIRD PARTY CLAIMS OF PROPERTY DAMAGE OR BODILY INJURY THAT
 ARISE  OUT OF THE OPERATION OF A SHORT-TERM RENTAL UNIT. NOTWITHSTANDING
 ANY OTHER PROVISION OF LAW, NO INSURER SHALL BE REQUIRED TO PROVIDE SUCH
 COVERAGE.
   2. OCCUPANCIES OF A SHORT-TERM RENTAL UNIT SHALL BE SUBJECT  TO  TAXES
 AND  FEES  PURSUANT  TO ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THE TAX
 LAW AND APPLICABLE LOCAL LAWS.
   3. SHORT-TERM RENTAL HOSTS SHALL MAINTAIN  RECORDS  RELATED  TO  GUEST
 STAYS  FOR ONE YEAR, INCLUDING THE DATE OF EACH BOOKING AND THE IDENTITY
 AND NUMBER OF GUESTS, AND  RECORDS  RELATED  TO  THEIR  REGISTRATION  AS
 SHORT-TERM  RENTAL  HOSTS  WITH  THE  DIVISION  OF HOUSING AND COMMUNITY
 RENEWAL.
   4. HOSTING PLATFORMS SHALL MAINTAIN RECORDS RELATED TO GUEST STAYS FOR
 ONE YEAR, INCLUDING THE DATE OF EACH BOOKING AND THE IDENTITY AND NUMBER
 OF GUESTS. HOSTING PLATFORMS SHALL MAKE ALL RELEVANT  RECORDS  AVAILABLE
 TO  THE  DEPARTMENT OF STATE CONSISTENT IN RESPONSE TO VALID LEGAL PROC-
 ESS.
   5. SHORT-TERM RENTAL HOSTS MAY ONLY LIST  ONE  UNIT  ON  A  SHORT-TERM
 RENTAL PLATFORM.
   §  22.  REGISTRATION.  1. SHORT-TERM RENTAL HOSTS SHALL BE REQUIRED TO
 REGISTER A SHORT-TERM RESIDENTIAL UNIT WITH THE DEPARTMENT OF STATE.
   2. REGISTRATION SHALL BE VALID FOR TWO YEARS,  AFTER  WHICH  TIME  THE
 SHORT-TERM  RENTAL  HOST  MAY  RENEW HIS OR HER REGISTRATION IN A MANNER
 PRESCRIBED BY THE DEPARTMENT OF  STATE.  THE  DEPARTMENT  OF  STATE  MAY
 REVOKE THE REGISTRATION OF A SHORT-TERM RENTAL HOST UPON A DETERMINATION

 S. 5978--B                          3
 
 THAT THE SHORT-TERM RENTAL HOST HAS VIOLATED ANY PROVISION OF THIS ARTI-
 CLE  AT  LEAST THREE TIMES IN TWO CALENDAR YEARS, AND MAY DETERMINE THAT
 THE SHORT-TERM RENTAL HOST SHALL BE INELIGIBLE FOR  REGISTRATION  FOR  A
 PERIOD  OF  UP  TO  TWELVE  MONTHS  FROM THE DATE THE THIRD VIOLATION IS
 DETERMINED TO HAVE OCCURRED.
   3. THE DEPARTMENT OF STATE SHALL SET A FEE FOR SHORT-TERM  RESIDENTIAL
 RENTAL UNIT REGISTRATION.
   §  23.  EXCEPTION.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO
 THE CONTRARY, THIS ARTICLE SHALL NOT APPLY TO:
   1. A PRIVATE DWELLING OR APARTMENT WHOSE  PERMANENT  RESIDENT,  FAMILY
 MEMBER,  OR  OWNER  REMAINS IN THE PRIVATE DWELLING OR APARTMENT FOR THE
 DURATION OF ANY RENTAL  PERIOD,  PROVIDED  HOWEVER,  THAT  SUCH  PRIVATE
 DWELLING  OR  APARTMENT IS IN COMPLIANCE WITH THE STANDARDS SET FORTH IN
 THE LAW FOR BED AND BREAKFAST ESTABLISHMENTS; OR
   2. INCIDENTAL AND OCCASIONAL OCCUPANCY OF SUCH DWELLING UNIT FOR FEWER
 THAN THIRTY CONSECUTIVE DAYS BY OTHER NATURAL PERSONS WHEN THE PERMANENT
 OCCUPANTS ARE TEMPORARILY ABSENT FOR PERSONAL REASONS, SUCH AS  VACATION
 OR  MEDICAL  TREATMENT,  PROVIDED THAT THERE IS NO MONETARY COMPENSATION
 PAID TO THE PERMANENT OCCUPANTS FOR SUCH OCCUPANCY; OR
   3. TO ANY INDIVIDUAL OR OWNER WHO RENTS OUT THEIR PRIVATE DWELLING  OR
 APARTMENT  FOR FEWER THAN THIRTY CONSECUTIVE DAYS WHO EARNS NO MORE THAN
 TWENTY-FIVE HUNDRED DOLLARS PER ANNUM IN TOTAL FOR ALL  SUCH  APPLICABLE
 RENTAL PERIODS.
   §  24.  PENALTIES.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO
 THE CONTRARY, ANYONE FOUND IN VIOLATION OF THE PROVISIONS OF THIS  ARTI-
 CLE  SHALL  BE  SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN ONE THOUSAND
 DOLLARS NOR MORE THAN TWENTY-FIVE THOUSAND DOLLARS FOR  EACH  VIOLATION.
 IN  ADDITION TO SUCH CIVIL PENALTY, A SEPARATE ADDITIONAL PENALTY MAY BE
 IMPOSED OF NOT MORE THAN ONE THOUSAND DOLLARS  FOR  EACH  DAY  THAT  THE
 VIOLATION IS NOT CORRECTED.
   § 2. Subdivision (c) of section 1101 of the tax law, as added by chap-
 ter  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, is amended to read as follows:
   (c)  When  used  in  this  article for the purposes of the tax imposed
 under subdivision (e) of section eleven hundred five  OF  THIS  ARTICLE,
 AND  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE, the
 following terms shall mean:
   (1) Hotel. A building or portion of it which  is  regularly  used  and
 kept  open  as such for the lodging of guests. The term "hotel" includes
 an apartment hotel, a motel, boarding house  or  club,  whether  or  not
 meals are served, AND SHORT-TERM RENTAL UNITS.
   (2)  Occupancy.  The  use  or  possession,  or the right to the use or
 possession, of any room in a hotel. "Right to  the  use  or  possession"
 includes the rights of a room remarketer as described in paragraph eight
 of this subdivision.
   (3)  Occupant.  A person who, for a consideration, uses, possesses, or
 has the right to use or possess, any room in a hotel  under  any  lease,
 concession,  permit, right of access, license to use or other agreement,
 or otherwise. "Right to use or possess" includes the rights  of  a  room
 remarketer as described in paragraph eight of this subdivision.
   (4)  Operator. Any person operating a hotel. Such term shall include a
 room remarketer and such room remarketer shall be deemed  to  operate  a
 hotel,  or  portion  thereof,  with respect to which such person has the
 rights of a room remarketer.

 S. 5978--B                          4
 
   (5) Permanent resident. Any occupant of any room or rooms in  a  hotel
 for  at  least  ninety  consecutive days shall be considered a permanent
 resident with regard to the period of such occupancy.
   (6)  Rent.  The  consideration  received  for occupancy, including any
 service or other charge or amount required to be paid as a condition for
 occupancy, valued in money, whether received in money or  otherwise  and
 whether  received  by  the  operator  [or],  A  HOSTING PLATFORM, a room
 remarketer or another person on behalf of [either] ANY of them.
   (7) Room. Any room or rooms of any kind in any part or  portion  of  a
 hotel,  which  is  available for or let out for any purpose other than a
 place of assembly.
   (8) Room remarketer. A person who reserves, arranges for, conveys,  or
 furnishes  occupancy, whether directly or indirectly, to an occupant for
 rent in an amount determined by the room remarketer, directly  or  indi-
 rectly,  whether pursuant to a written or other agreement. Such person's
 ability or authority to reserve, arrange for, convey, or  furnish  occu-
 pancy,  directly or indirectly, and to determine rent therefor, shall be
 the "rights of a room remarketer". A room remarketer is not a  permanent
 resident  with respect to a room for which such person has the rights of
 a room remarketer.  THIS TERM DOES NOT INCLUDE A HOSTING PLATFORM.
   (9) SHORT-TERM RENTAL UNIT. A ROOM, GROUP OF ROOMS, OR OTHER LIVING OR
 SLEEPING SPACE, OR ANY OTHER SPACE LET TO OCCUPANTS, INCLUDING  BUT  NOT
 LIMITED  TO  PRIVATE  DWELLINGS,  RESIDENCES, OR BUILDINGS USED AS RESI-
 DENCES.
   (10) HOSTING PLATFORM. A PERSON OR ENTITY WHO, PURSUANT TO  AN  AGREE-
 MENT WITH AN OPERATOR OF A HOTEL:
   (I) PROVIDES A PLATFORM FOR COMPENSATION THROUGH WHICH AN UNAFFILIATED
 THIRD PARTY HOTEL OPERATOR OFFERS TO RENT SPACE IN A HOTEL; AND
   (II) COLLECTS A FEE IN CONNECTION WITH EITHER:
   (A)  PROVIDING  THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE OFFER OF
 OCCUPANCY OF A HOTEL ROOM IS ACCEPTED; OR
   (B) PROVIDING THE FORUM IN WHICH A HOTEL OPERATOR CAN LIST  OR  ADVER-
 TISE SPACE IN A HOTEL FOR OCCUPANCY.
   §  3.  Subdivision  (e)  of  section 1105 of the tax law is amended by
 adding a new paragraph 3 to read as follows:
   (3) THE RENT FOR EVERY OCCUPANCY OF A ROOM OR ROOMS IN A HOTEL OFFERED
 FOR RENT THROUGH A HOSTING PLATFORM, AS  DEFINED  IN  PARAGRAPH  TEN  OF
 SUBDIVISION  (C)  OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, REGARD-
 LESS OF WHETHER IT IS FURNISHED, LIMITED TO A SINGLE  FAMILY  OCCUPANCY,
 OR  PROVIDES HOUSEKEEPING, FOOD, OR OTHER COMMON HOTEL SERVICES, INCLUD-
 ING, BUT NOT LIMITED TO, ENTERTAINMENT OR PLANNED ACTIVITIES.
   § 4. Subdivision 1 of section 1131 of  the  tax  law,  as  amended  by
 section  1  of  part  X of chapter 59 of the laws of 2018, is amended to
 read as follows:
   (1) "Persons required to collect tax" or "person required  to  collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal property or services; every recipient of amusement charges; and
 every operator of a hotel; AND HOSTING PLATFORMS UNLESS RELIEVED OF SUCH
 OBLIGATION  PURSUANT  TO  PARAGRAPH  THREE OF SUBDIVISION (L) OF SECTION
 ELEVEN HUNDRED THIRTY-TWO OF THIS PART. Said terms  shall  also  include
 any  officer,  director  or  employee of a corporation or of a dissolved
 corporation, any employee of a partnership, any employee or manager of a
 limited liability company, or any employee of an individual  proprietor-
 ship  who as such officer, director, employee or manager is under a duty
 to act for such corporation, partnership, limited liability  company  or
 individual  proprietorship  in  complying  with  any requirement of this

 S. 5978--B                          5
 
 article, or has so acted; and any member of  a  partnership  or  limited
 liability  company.  Provided,  however, that any person who is a vendor
 solely by reason of clause (D) or (E) of subparagraph (i)  of  paragraph
 (8)  of  subdivision  (b)  of section eleven hundred one of this article
 shall not be a "person required to collect any tax imposed by this arti-
 cle" until twenty days after the date by which such person  is  required
 to file a certificate of registration pursuant to section eleven hundred
 thirty-four of this part.
   §  5.  Section 1132 of the tax law is amended by adding a new subdivi-
 sion (l) to read as follows:
   (L)(1) A HOSTING PLATFORM SHALL BE REQUIRED TO (I)  COLLECT  FROM  THE
 OCCUPANTS  THE  APPLICABLE  TAXES  ARISING  FROM  SUCH OCCUPANCIES; (II)
 COMPLY WITH ALL THE PROVISIONS OF THIS ARTICLE AND  ARTICLE  TWENTY-NINE
 OF  THIS  CHAPTER  AND  ANY  REGULATIONS ADOPTED PURSUANT THERETO; (III)
 REGISTER TO COLLECT TAX UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS
 PART; AND (IV) RETAIN RECORDS AND INFORMATION AS REQUIRED BY THE COMMIS-
 SIONER  AND  COOPERATE  WITH  THE  COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE OF TAX IMPOSED, COLLECTED, OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) IN CARRYING OUT THE OBLIGATIONS  IMPOSED  UNDER  THIS  SECTION,  A
 HOSTING  PLATFORM  SHALL HAVE ALL THE DUTIES, BENEFITS, AND ENTITLEMENTS
 OF A PERSON REQUIRED TO COLLECT TAX UNDER THIS ARTICLE AND ARTICLE TWEN-
 TY-NINE OF THIS CHAPTER WITH RESPECT TO THE OCCUPANCIES GIVING  RISE  TO
 THE TAX OBLIGATION, INCLUDING THE RIGHT TO ACCEPT A CERTIFICATE OR OTHER
 DOCUMENTATION  FROM AN OCCUPANT SUBSTANTIATING AN EXEMPTION OR EXCLUSION
 FROM TAX, AS IF SUCH HOSTING PLATFORM WERE THE  OPERATOR  OF  THE  HOTEL
 WITH  RESPECT  TO  SUCH  OCCUPANCY,  INCLUDING  THE RIGHT TO RECEIVE THE
 REFUND AUTHORIZED BY SUBDIVISION (E) OF  THIS  SECTION  AND  THE  CREDIT
 ALLOWED  BY  SUBDIVISION  (F)  OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF
 THIS PART.
   (3) AN OPERATOR OF A HOTEL IS NOT A PERSON REQUIRED TO COLLECT TAX FOR
 PURPOSES OF THIS PART WITH RESPECT TO TAXES IMPOSED UPON OCCUPANCIES  OF
 HOTELS IF:
   (I)  THE OPERATOR OF THE HOTEL CAN SHOW THAT THE OCCUPANCY WAS FACILI-
 TATED BY A HOSTING PLATFORM WHO IS REGISTERED TO COLLECT TAX PURSUANT TO
 SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART; AND
   (II) THE OPERATOR OF THE HOTEL ACCEPTED FROM THE  HOSTING  PLATFORM  A
 PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE
 COMMISSIONER  CERTIFYING  THAT THE HOSTING PLATFORM HAS AGREED TO ASSUME
 THE TAX COLLECTION AND FILING RESPONSIBILITIES OF THE  OPERATOR  OF  THE
 HOTEL; AND
   (III) ANY FAILURE OF THE HOSTING PLATFORM TO COLLECT THE PROPER AMOUNT
 OF TAX WITH RESPECT TO SUCH OCCUPANCY WAS NOT THE RESULT OF THE OPERATOR
 OF  THE  HOTEL  PROVIDING INCORRECT INFORMATION TO THE HOSTING PLATFORM,
 WHETHER INTENTIONAL OR UNINTENTIONAL.
   THIS PROVISION SHALL BE  ADMINISTERED  IN  A  MANNER  CONSISTENT  WITH
 SUBPARAGRAPH  (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS
 IF A CERTIFICATE OF COLLECTION WERE A RESALE  OR  EXEMPTION  CERTIFICATE
 FOR  PURPOSES  OF  SUCH  SUBPARAGRAPH,  INCLUDING  WITH  REGARD  TO  THE
 COMPLETENESS OF SUCH CERTIFICATE OF COLLECTION AND  THE  TIMING  OF  ITS
 ACCEPTANCE  BY  THE  OPERATOR  OF THE HOTEL; PROVIDED HOWEVER, THAT WITH
 REGARD TO ANY OCCUPANCIES SOLD BY AN OPERATOR  OF  THE  HOTEL  THAT  ARE
 FACILITATED  BY A HOSTING PLATFORM WHO IS AFFILIATED WITH SUCH OPERATOR,
 THE OPERATOR SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT  FOR
 SUCH  HOSTING PLATFORM FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN
 HUNDRED THIRTY-ONE OF THIS PART.

 S. 5978--B                          6
 
   (4) THE COMMISSIONER MAY, IN HIS OR HER  DISCRETION  DEVELOP  STANDARD
 LANGUAGE,  OR APPROVE LANGUAGE DEVELOPED BY A HOSTING PLATFORM, IN WHICH
 THE HOSTING PLATFORM OBLIGATES ITSELF TO COLLECT THE TAX  ON  BEHALF  OF
 ALL THE OPERATORS OF HOTELS.
   (5)  IN THE EVENT AN OPERATOR OF A HOTEL IS A ROOM REMARKETER, AND ALL
 OTHER PROVISIONS OF THIS SUBDIVISION ARE MET SUCH THAT A  HOSTING  PLAT-
 FORM  IS  OBLIGATED  TO  COLLECT  TAX,  AND  DOES IN FACT COLLECT TAX AS
 EVIDENCED BY THE BOOKS AND RECORDS OF SUCH HOSTING  PLATFORM,  THEN  THE
 PROVISIONS OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS
 ARTICLE SHALL BE APPLICABLE.
   §  6.  Subpart  A of part 1 of article 29 of the tax law is amended by
 adding a new section 1200 to read as follows:
   § 1200. DEFINITION. FOR THE PURPOSES OF  THIS  ARTICLE  "HOTEL"  SHALL
 MEAN  A BUILDING OR PORTION OF SUCH BUILDING WHICH IS REGULARLY USED AND
 KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS, INCLUDING: (A) AN APARTMENT
 HOTEL, (B) A MOTEL, (C) A BOARDING HOUSE OR CLUB, WHETHER OR  NOT  MEALS
 ARE  SERVED,  AND  (D) SHORT-TERM RESIDENTIAL RENTAL UNITS AS DEFINED IN
 SUBDIVISION ONE OF SECTION TWENTY OF THE MULTIPLE RESIDENCE LAW.
   § 7. Notwithstanding any other provisions of law to  the  contrary,  a
 county,  city, town, or village government may enact a local law prohib-
 iting or limiting the listing or use of  short-term  residential  rental
 units.
   § 8. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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Deborah_Collet…

9 months ago

§ 21. SHORT-TERM RESIDENTIAL RENTAL UNITS; REGULATION. 1. A SHORT-TERMRENTAL HOST MAY OPERATE A DWELLING UNIT AS A SHORT-TERM RESIDENTIAL RENTAL UNIT PROVIDED SUCH DWELLING UNIT:
…

5. SHORT-TERM RENTAL HOSTS MAY ONLY LIST ONE UNIT ON A SHORT-TERM RENTAL PLATFORM.

Being that the short-term rental is being classified as a Hotel
§ 2. Subdivision (c) of section 1101 of the tax law, as added by chap- ter 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, is amended to read as follows:
…

(1) Hotel. A building or portion of it which is regularly used and
kept open as such for the lodging of guests. The term "hotel" includes
an apartment hotel, a motel, boarding house or club, whether or not
meals are served, AND SHORT-TERM RENTAL UNITS.

Because the proposed Senate Bill S5978A has the basic intention to align Short-Term Rentals with NYS Tourism regulations of the Hotel industry If the restriction is such that a short-term host is limited to advertising ONE UNIT on a platform, the same limit should be applied to all classifications of hotels.

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Senate Bill S5978A

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Sponsored By

Rich Funke

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Bill Amendments

2017-S5978 - Details

2017-S5978 - Summary

2017-S5978 - Sponsor Memo

2017-S5978 - Bill Text download pdf

2017-S5978A - Details

2017-S5978A - Summary

2017-S5978A - Sponsor Memo

2017-S5978A - Bill Text download pdf

2017-S5978B (ACTIVE) - Details

2017-S5978B (ACTIVE) - Summary

2017-S5978B (ACTIVE) - Sponsor Memo

2017-S5978B (ACTIVE) - Bill Text download pdf

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