Op-Ed: Bring fairness and transparency to short-term rentals

Guest Editorial from the New York State Hospitality & Tourism Association

Let us be the first to say that New York state's tourism industry needs short-term rentals (like Airbnb and VRBO) to be successful. A record 303 million travelers visited the great state of New York in 2023, and they need places to stay. But for New York’s tourism industry to be successful and sustainable, we need a better system to manage the growth of the short-term rental industry.

Short-term lodging accommodations outside of New York City accounted for more than $1 billion in revenue in 2023. But unlike any other billion-dollar industry, short-term rentals operate with virtually no oversight. The rapid grown of the short-term rental industry has left communities struggling with inconsistent regulations and enforcement challenges and has aggravated the housing crisis by causing a reduction in the availability of long-term housing, driving up costs, and displacing residents.

Additionally, unlike traditional hotels, short-term rentals provide little to no support to communities in the form of sales tax. Visitors who stay in short-term rentals use community resources like roads, bridges, fire and police, but contribute virtually no revenue to support and maintain those services, placing more of the burden on local taxpayers.

Fortunately, this year, state legislators from both parties came together to pass a bill, S.885-C (Hinchey) / A.4130-C (Fahy), that would begin to remedy this situation by creating a statewide registration system for short-term rentals and requiring the collection of sales and occupancy taxes generated from such rentals.

Creating a unified statewide registry of short-term rentals will provide communities with a clear picture of local housing landscapes and a better understanding of the revenue they generate, as well as their impacts on local services, like fire and EMS service. Additionally, by requiring the collection of sales and occupancy taxes, the legislation will level the playing field between hotels and short-term rentals and generate revenue for counties and municipalities that fund critical investments in tourism, economic development, public safety and infrastructure. This also ends a $550 million hole that’s been created in local government coffers on missed revenue from occupancy and sales taxes for our local communities.

By bringing clarity and consistency to the market, this forward-thinking legislation promises to benefit communities, enhance safety, and support local economies across the state. The long-term sustainability of the tourism industry, and the communities that it supports, depends on action to control what has become an untenable situation.

We at the New York State Hospitality & Tourism Association (NYSHTA) and New York State Association of Counties, and county leaders across the state, strongly support this legislation. We’re joined in our support by the New York Stare Conference of Mayors (NYCOM), the Association of Towns of the State of New York, business councils, and housing advocates from across the state in urging Gov. Hochul to sign this bill into law.

Mark Dorr, president of the New York State Hospitality & Tourism Association

Benjamin Boykin II, president of the New York State Association of Counties