Bill Text: NY S04899 | 2019-2020 | General Assembly | Introduced
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Bill Title: Relates to the regulation of short-term rental units; authorizes short-term rental units and requires short-term rental hosts to register each unit with the division of housing and community renewal; establishes that 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.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S04899 Detail]
Download: New_York-2019-S04899-Introduced.html
Bill Title: Relates to the regulation of short-term rental units; authorizes short-term rental units and requires short-term rental hosts to register each unit with the division of housing and community renewal; establishes that 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.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S04899 Detail]
Download: New_York-2019-S04899-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4899 2019-2020 Regular Sessions IN SENATE March 28, 2019 ___________ Introduced by Sens. SKOUFIS, CARLUCCI, HARCKHAM, SAVINO, THOMAS -- 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 dwelling law and the tax law, in relation to the regulation of short-term rental units; and to amend chapter 161 of the laws of 1970, relating to enabling any city having a population of one million or more to impose and collect taxes on the occupancy of hotel rooms in such city, in relation to authorizing any city agency administering certain taxes to enter into voluntary agreements to permit the collection and remittance of such taxes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph 1 of paragraph a of subdivision 8 of section 4 2 of the multiple dwelling law, as amended by chapter 225 of the laws of 3 2010, is amended to read as follows: 4 (1) (A) occupancy of such dwelling unit for fewer than thirty consec- 5 utive days by other natural persons living within the household of the 6 permanent occupant such as house guests or lawful boarders, roomers or 7 lodgers; [or] 8 (B) incidental and occasional occupancy of such dwelling unit for 9 fewer than thirty consecutive days by other natural persons when the 10 permanent occupants are temporarily absent for personal reasons such as 11 vacation or medical treatment, provided that there is no monetary 12 compensation paid to the permanent occupants for such occupancy; or 13 (C) occupancy of such dwelling as a short-term rental unit pursuant to 14 article seven-D of this chapter. 15 § 2. The multiple dwelling law is amended by adding a new article 7-D 16 to read as follows: 17 ARTICLE 7-D 18 SHORT-TERM RENTAL UNITS 19 Section 288. Definitions. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10115-01-9S. 4899 2 1 289. Short-term rental units authorized. 2 290. Registration. 3 291. Requirements of hosting platforms. 4 292. Regulations. 5 § 288. Definitions. For the purposes of this article, the following 6 terms shall have the following meanings: 7 1. "Short-term rental unit" means an entire dwelling unit, or a room, 8 group of rooms, other living or sleeping space, or any other space, made 9 available for rent by guests for less than thirty consecutive days. 10 2. "Short-term rental host" means an owner or tenant of a short-term 11 rental unit who rents such unit to guests. 12 3. "Hosting platform" means a person or entity who, pursuant to an 13 agreement with a short-term rental host: 14 (a) provides a platform for compensation through which unaffiliated 15 third party short-term rental hosts can offer to rent short-term rental 16 units; and 17 (b) collects a fee in connection with either: 18 (i) providing the forum in which, or by means of which, the offer of 19 occupancy of a short-term rental unit is accepted; or 20 (ii) providing the forum in which a short-term rental host can list or 21 advertise space in a short-term rental unit. 22 § 289. Short-term rental units authorized. 1. A short-term rental host 23 may operate a dwelling unit as a short-term rental unit provided such 24 dwelling unit: 25 (a) is registered in accordance with section two hundred ninety of 26 this article; 27 (b) is not used to provide single room occupancy as defined by subdi- 28 vision sixteen of section four of this chapter; 29 (c) includes a conspicuously posted evacuation diagram identifying all 30 means of egress from the unit and the building in which it is located; 31 (d) includes a conspicuously posted list of emergency phone numbers 32 for police, fire, and poison control; and 33 (e) is insured for at least two hundred fifty thousand dollars to 34 protect against third party claims of property damage or bodily injury 35 that arise out of the operation of a short-term rental unit. Insurance 36 provided by hosting platforms can satisfy this requirement. 37 2. A short-term rental host may only operate a rent-stabilized dwell- 38 ing unit as a short-term rental unit if the annual rent generated from 39 short-term rent does not exceed the annual legal rent for the unit as 40 defined by the division of housing and community renewal; provided 41 however, that a violation of this subdivision shall not be a ground for 42 eviction under the rent stabilization code unless the short-term rental 43 host has received two prior violations under the rent stabilization 44 code. 45 3. A short-term rental host may not operate a dwelling unit as a 46 short-term rental unit if the unit is a rent-controlled unit subject to 47 the local emergency rent control act or chapter seven of subtitle S of 48 title nine of New York's compilation of codes, rules, and regulations, 49 an income-based public housing unit, or a dwelling unit paid for with 50 vouchers or other monetary subsidies, in whole or in part, from a 51 government entity. 52 4. A short-term rental host shall not operate more than one class A 53 multiple dwelling unit as a short-term rental unit unless the units are 54 at the same address, including apartment number, if applicable.S. 4899 3 1 5. Occupancies of a short-term rental unit shall be subject to taxes 2 and fees pursuant to articles twenty-eight and twenty-nine of the tax 3 law and applicable local laws. 4 6. Short-term rental hosts shall maintain records related to guest 5 stays for one year, including the date of each booking and the identity 6 and number of guests, and records related to their registration as 7 short-term rental hosts with the division of housing and community 8 renewal. 9 7. Hosting platforms shall maintain records related to guest stays for 10 one year, including the date of each booking and the identity and number 11 of guests. Hosting platforms shall make all relevant records available 12 to the division of housing and community renewal consistent in response 13 to valid legal process. 14 § 290. Registration. 1. Short-term rental hosts shall be required to 15 register each short-term rental unit with the division of housing and 16 community renewal. 17 2. Registrations shall be valid for two years, after which time the 18 short-term rental host may renew his or her registration in a manner 19 prescribed by the division of housing and community renewal. The divi- 20 sion of housing and community renewal may revoke the registration of a 21 short-term rental host upon a determination that the short-term rental 22 host has violated any provision of this article at least three times in 23 two calendar years, and may determine that the short-term rental host 24 shall be ineligible for registration for a period of up to twelve months 25 from the date the third violation is determined to have occurred. 26 3. The division of housing and community renewal shall set a fee for 27 short-term rental registration not to exceed one hundred dollars, with 28 revenue dedicated to enforcement of short-term rental laws. 29 4. Hosting platforms are authorized to facilitate the registration 30 process by collecting the required information and transmitting it to 31 the division of housing and community renewal for processing. 32 § 291. Requirements of hosting platforms. Hosting platforms shall: 33 1. create a dedicated means by which complaints can be submitted by 34 short-term rental hosts, guests, and community members. These means 35 shall be available twenty-four hours a day, seven days a week. 36 2. provide the division of housing and community renewal and the New 37 York city mayor's office of special enforcement with anonymized statis- 38 tics on a quarterly basis regarding the short-term rental of properties 39 on their platforms in cities with a population of one million or more. 40 Such report shall be submitted within thirty days following the end of 41 each calendar quarter in which it operates as a hosting platform in a 42 manner to be determined by the division of housing and community 43 renewal. The information to be disclosed shall include: 44 (a) statistics regarding each short-term rental unit that was rented 45 on the platform during the previous quarter, including city, borough, 46 zip code, listing type (such as whether the listing is for an entire or 47 shared property), the number of nights rented for the reporting period, 48 the number of nights rented for the calendar year, and the total amount 49 of revenue submitted to the short-term rental host in connection with 50 the rental of the unit in question. Information regarding the number of 51 nights rented shall be reported in ranges of twenty-five. Information 52 regarding the total amount of revenue shall be reported in ranges of ten 53 thousand dollars; and 54 (b) statistics regarding each short-term rental host who rented a 55 short-term rental unit on the platform during the previous quarter, 56 including:S. 4899 4 1 (i) the number of distinct addresses simultaneously advertised as 2 short-term rentals during the prior reporting period for each short-term 3 rental host simultaneously advertising more than one distinct address as 4 a short-term rental during the reporting period; and 5 (ii) the number of such distinct addresses simultaneously rented as 6 short-term rentals during the reporting period for each short-term 7 rental host simultaneously advertising more than one distinct address as 8 a short-term rental during the reporting period. Hosting platforms 9 shall not have the obligation to disclose any listing or host-level 10 information if the disclosure could reasonably lead to the identifica- 11 tion of a specific property or short-term rental host. 12 3. maintain records of all transactions in cities with a population of 13 a million or more for a period of twelve months. 14 4. inform short-term rental hosts of the registration requirement and, 15 if requested to do so, collect and transmit the required information to 16 the division of housing and community renewal on behalf of the short- 17 term rental host. 18 § 292. Regulations. The division of housing and community renewal 19 shall promulgate regulations necessary and appropriate to enforce this 20 article, including regulations to facilitate the registration of short- 21 term rental hosts and to facilitate information sharing between and 22 among the division, hosting platforms, and other enforcement agencies. 23 § 3. Section 304 of the multiple dwelling law is amended by adding a 24 new subdivision 1-b to read as follows: 25 1-b. a. Every person who shall violate or assist in the violation of 26 any provision of sections two hundred eighty-nine or two hundred ninety 27 of this chapter shall be guilty of an offense, and any person found to 28 have committed three or more offenses of such sections may be prohibited 29 from operating a short-term rental unit for a period of one year. 30 b. The maximum fine for violating subdivision four of section two 31 hundred eighty-nine of this chapter shall be one thousand dollars for a 32 first offense; four thousand dollars for the second offense; and seven 33 thousand five hundred dollars for the third or any subsequent offense. 34 The maximum fine for violating subdivision two of section two hundred 35 eighty-nine of this chapter shall be the difference between the annual 36 rent generated by the short-term rental and the annual legal rent, plus 37 an additional fine of fifty dollars for the first offense, one hundred 38 dollars for the second offense, and two hundred fifty dollars for the 39 third offense. The maximum fine for violating subdivision three of 40 section two hundred eighty-nine of this chapter shall be the amount of 41 revenue generated from the short-term rental plus an additional fine of 42 fifty dollars for the first offense, one hundred dollars for the second 43 offense, and two hundred fifty dollars for the third offense. The maxi- 44 mum fine for all other provisions of sections two hundred eighty-nine or 45 two hundred ninety of this chapter shall be fifty dollars for a first 46 offense; one hundred dollars for the second offense; and two hundred 47 fifty dollars for the third or any subsequent offense. 48 c. Any violation under this subdivision shall not be a crime and the 49 penalty or punishment imposed therefor shall not be deemed for any 50 purpose a penal or criminal penalty or punishment, and shall not impose 51 any disability upon or affect or impair the credibility as a witness, or 52 otherwise, of any person convicted thereof. 53 § 4. Subdivision (c) of section 1101 of the tax law, as added by chap- 54 ter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by 55 section 2 and paragraph 8 as added by section 3 of part AA of chapter 57 56 of the laws of 2010, and paragraph 5 as amended by chapter 575 of theS. 4899 5 1 laws of 1965, is amended and two new paragraphs 9 and 10 are added to 2 read as follows: 3 (c) When used in this article for the purposes of the tax imposed 4 under subdivision (e) of section eleven hundred five, and subdivision 5 (a) of section eleven hundred four, the following terms shall mean: 6 (1) Hotel. A building or portion of it which is regularly used and 7 kept open as such for the lodging of guests. The term "hotel" includes 8 an apartment hotel, a motel, boarding house or club, whether or not 9 meals are served, and short-term rental units. 10 (2) Occupancy. The use or possession, or the right to the use or 11 possession, of any room in a hotel. "Right to the use or possession" 12 includes the rights of a room remarketer as described in paragraph eight 13 of this subdivision. 14 (3) Occupant. A person who, for a consideration, uses, possesses, or 15 has the right to use or possess, any room in a hotel under any lease, 16 concession, permit, right of access, license to use or other agreement, 17 or otherwise. "Right to use or possess" includes the rights of a room 18 remarketer as described in paragraph eight of this subdivision. 19 (4) Operator. Any person operating a hotel. Such term shall include a 20 room remarketer and such room remarketer shall be deemed to operate a 21 hotel, or portion thereof, with respect to which such person has the 22 rights of a room remarketer. 23 (5) Permanent resident. Any occupant of any room or rooms in a hotel 24 for at least ninety consecutive days shall be considered a permanent 25 resident with regard to the period of such occupancy. 26 (6) Rent. The consideration received for occupancy, including any 27 service or other charge or amount required to be paid as a condition for 28 occupancy, valued in money, whether received in money or otherwise and 29 whether received by the operator [or], a hosting platform, a room 30 remarketer or another person on behalf of [either] any of them. Rent 31 shall not include a separately stated fee or similar charge paid by the 32 occupant to the hosting platform for: (i) providing the forum in which, 33 or by means of which, the offer of occupancy is accepted, including an 34 internet website or similar forum; (ii) arranging for the exchange of 35 information or messages between the occupant and the operator of the 36 hotel; or (iii) facilitating payment between the occupant and the opera- 37 tor of the hotel. 38 (7) Room. Any room or rooms of any kind in any part or portion of a 39 hotel, which is available for or let out for any purpose other than a 40 place of assembly. 41 (8) Room remarketer. A person who reserves, arranges for, conveys, or 42 furnishes occupancy, whether directly or indirectly, to an occupant for 43 rent in an amount determined by the room remarketer, directly or indi- 44 rectly, whether pursuant to a written or other agreement. Such person's 45 ability or authority to reserve, arrange for, convey, or furnish occu- 46 pancy, directly or indirectly, and to determine rent therefor, shall be 47 the "rights of a room remarketer". A room remarketer is not a permanent 48 resident with respect to a room for which such person has the rights of 49 a room remarketer. This term does not include a hosting platform. 50 (9) Short-term rental unit. A room, group of rooms, or other living or 51 sleeping space, or any other space let to occupants, including but not 52 limited to private dwellings, residences, or buildings used as resi- 53 dences. 54 (10) Hosting platform. A person or entity who, pursuant to an agree- 55 ment with an operator of a hotel:S. 4899 6 1 (i) provides a platform for compensation through which an unaffiliated 2 third party hotel operator offers to rent space in a hotel; and 3 (ii) collects a fee in connection with either: 4 (A) providing the forum in which, or by means of which, the offer of 5 occupancy of a hotel room is accepted; or 6 (B) providing the forum in which a hotel operator can list or adver- 7 tise space in a hotel for occupancy. 8 § 5. Subdivision (e) of section 1105 of the tax law is amended by 9 adding a new paragraph 3 to read as follows: 10 (3) The rent for every occupancy of a room or rooms in a hotel offered 11 for rent through a hosting platform, as defined in paragraph ten of 12 subdivision (c) of section eleven hundred one of this article, regard- 13 less of whether it is furnished, limited to a single family occupancy, 14 or provides housekeeping, food, or other common hotel services, includ- 15 ing, but not limited to, entertainment or planned activities. 16 § 6. Subdivision (a) of section 1104 of the tax law, as added by chap- 17 ter 3 of the laws of 2004, is amended to read as follows: 18 (a) Imposition. In addition to any other fee or tax imposed by this 19 article or any other law, on and after April first, two thousand five, 20 there is hereby imposed within the territorial limits of a city with a 21 population of a million or more and there shall be paid a unit fee on 22 every occupancy of a unit in a hotel in such city subject to tax under 23 paragraphs one through three of subdivision (e) of section eleven 24 hundred five of this part at the rate of one dollar and fifty cents per 25 unit per day, except that such unit fee shall not be imposed upon (1) 26 occupancy by a permanent resident or (2) where the rent per unit is not 27 more than at the rate of two dollars per day. 28 § 7. Subdivision 1 of section 1131 of the tax law, as amended by 29 section 1 of part X of chapter 59 of the laws of 2018, is amended to 30 read as follows: 31 (1) "Persons required to collect tax" or "person required to collect 32 any tax imposed by this article" shall include: every vendor of tangible 33 personal property or services; every recipient of amusement charges; 34 [and] every operator of a hotel[.]; and hosting platforms where the 35 hosting platform voluntarily consents to assume the tax collection and 36 remittance responsibilities of an operator of a hotel unless relieved of 37 such obligation pursuant to paragraph four of subdivision (l) of section 38 eleven hundred thirty-two of this part. Said terms shall also include 39 any officer, director or employee of a corporation or of a dissolved 40 corporation, any employee of a partnership, any employee or manager of a 41 limited liability company, or any employee of an individual proprietor- 42 ship who as such officer, director, employee or manager is under a duty 43 to act for such corporation, partnership, limited liability company or 44 individual proprietorship in complying with any requirement of this 45 article, or has so acted; and any member of a partnership or limited 46 liability company. Provided, however, that any person who is a vendor 47 solely by reason of clause (D) or (E) of subparagraph (i) of paragraph 48 (8) of subdivision (b) of section eleven hundred one of this article 49 shall not be a "person required to collect any tax imposed by this arti- 50 cle" until twenty days after the date by which such person is required 51 to file a certificate of registration pursuant to section eleven hundred 52 thirty-four of this part. 53 § 8. Section 1132 of the tax law is amended by adding a new subdivi- 54 sion (l) to read as follows: 55 (l)(1) A hosting platform may enter into a voluntary agreement with 56 the commissioner, under which the hosting platform shall collect andS. 4899 7 1 remit taxes on occupancies of rentals of hotels on or after the effec- 2 tive date of the voluntary agreement; provided however, that when a 3 hosting platform enters into such a voluntary agreement, it shall be 4 required to (i) collect from the occupants the applicable taxes arising 5 from such occupancies; (ii) comply with all the provisions of this arti- 6 cle and article twenty-nine of this chapter and any regulations adopted 7 pursuant thereto; (iii) register to collect tax under section eleven 8 hundred thirty-four of this part; and (iv) retain records and informa- 9 tion as required by the commissioner and cooperate with the commissioner 10 to ensure the proper collection and remittance of tax imposed, 11 collected, or required to be collected under this article and article 12 twenty-nine of this chapter. 13 (2) In carrying out the obligations imposed under this section, a 14 hosting platform shall have all the duties, benefits, and entitlements 15 of a person required to collect tax under this article and article twen- 16 ty-nine of this chapter with respect to the occupancies giving rise to 17 the tax obligation, including the right to accept a certificate or other 18 documentation from an occupant substantiating an exemption or exclusion 19 from tax, as if such hosting platform were the operator of the hotel 20 with respect to such occupancy, including the right to receive the 21 refund authorized by subdivision (e) of this section and the credit 22 allowed by subdivision (f) of section eleven hundred thirty-seven of 23 this part. 24 (3) No hosting platform shall be required to list any operator of a 25 hotel on any return required to be filed under this article and article 26 twenty-nine of this chapter or under any regulations adopted pursuant 27 thereto. Audits of any hosting platform shall be conducted solely on the 28 basis of the tax identification number associated with each hosting 29 platform and shall not be conducted directly or indirectly on any opera- 30 tor of a hotel or any occupant to whom occupancy is rented from an oper- 31 ator of a hotel, nor shall any hosting platform be required to disclose 32 any personally identifiable information relating to any operator of a 33 hotel or occupant to whom occupancy is rented from an operator of a 34 hotel. 35 (4) An operator of a hotel is not a person required to collect tax for 36 purposes of this part with respect to taxes imposed upon occupancies of 37 hotels if: 38 (i) the operator of the hotel can show that the occupancy was facili- 39 tated by a hosting platform who is registered to collect tax pursuant to 40 section eleven hundred thirty-four of this part; and 41 (ii) the operator of the hotel accepted from the hosting platform a 42 properly completed certificate of collection in a form prescribed by the 43 commissioner certifying that the hosting platform has agreed to assume 44 the tax collection and filing responsibilities of the operator of the 45 hotel; and 46 (iii) any failure of the hosting platform to collect the proper amount 47 of tax with respect to such occupancy was not the result of the operator 48 of the hotel providing incorrect information to the hosting platform, 49 whether intentional or unintentional. 50 This provision shall be administered in a manner consistent with 51 subparagraph (i) of paragraph one of subdivision (c) of this section as 52 if a certificate of collection were a resale or exemption certificate 53 for purposes of such subparagraph, including with regard to the 54 completeness of such certificate of collection and the timing of its 55 acceptance by the operator of the hotel; provided however, that with 56 regard to any occupancies sold by an operator of the hotel that areS. 4899 8 1 facilitated by a hosting platform who is affiliated with such operator, 2 the operator shall be deemed liable as a person under a duty to act for 3 such hosting platform for purposes of subdivision one of section eleven 4 hundred thirty-one of this part. 5 (5) The commissioner may, in his or her discretion, (i) develop stand- 6 ard language, or approve language developed by a hosting platform, in 7 which the hosting platform obligates itself to collect the tax on behalf 8 of all the operators of hotels; and (ii) provide by regulation or other- 9 wise that the inclusion of such language in an agreement between a host- 10 ing platform and the commissioner as provided for in paragraph one of 11 this subdivision shall, upon notice to the operator, have the same 12 effect as an operator's acceptance of a certificate of collection from a 13 hosting platform under paragraph four of this subdivision. 14 (6) In the event an operator of a hotel is a room remarketer, and all 15 other provisions of this subdivision are met such that a hosting plat- 16 form is obligated to collect tax, and does in fact collect tax as 17 evidenced by the books and records of such hosting platform, then the 18 provisions of subdivision (e) of section eleven hundred nineteen of this 19 article shall be applicable. 20 (7) Information provided by a hosting platform to the commissioner 21 shall be confidential. Such confidential information shall not be 22 disclosed by the commissioner unless the hosting platform has given 23 written consent to make such disclosure or there is an agreement between 24 the hosting platform and the commissioner to make such disclosure. 25 Notwithstanding any law to the contrary, information provided by a host- 26 ing platform shall not be subject to article six of the public officers 27 law and shall not be provided to any other agency of the state, locali- 28 ty, or any other government entity or political subdivision. 29 § 9. Section 1202 of the tax law is amended by adding a new subdivi- 30 sion (h) to read as follows: 31 (h) It is expressly recognized that any county authorized and 32 empowered to impose hotel, motel, or occupancy taxes pursuant to this 33 subpart has the authority to permit the county agency that administers 34 such taxes to enter into voluntary agreements with any person or third 35 party, including but not limited to hosting platforms, to permit such 36 person, third party, or platform to collect and remit such taxes on 37 behalf of the party or parties required to collect and remit them under 38 the applicable statutes. The voluntary agreement shall be evinced by a 39 signed, written agreement between the county agency that administers 40 such taxes and the person or third party assuming the obligation to 41 collect and remit the taxes. 42 § 10. Section 1 of chapter 161 of the laws of 1970, relating to enabl- 43 ing any city having a population of one million or more to impose and 44 collect taxes on the occupancy of hotel rooms in such city, is amended 45 by adding a new subdivision 11 to read as follows: 46 (11) It is expressly recognized that any city agency administering the 47 taxes authorized by this act is permitted to enter into voluntary agree- 48 ments with any person or third party, including but not limited to host- 49 ing platforms, to permit such person, third party, or platform to 50 collect and remit such taxes on behalf of the party or parties required 51 to collect and remit them under the applicable statutes. The voluntary 52 agreement shall be evinced by a signed, written agreement between the 53 city agency responsible for administering the taxes and the person or 54 third party assuming the obligation to collect and remit the taxes. 55 § 11. This act shall take effect on the one hundred twentieth day 56 after it shall have become a law.
