Bill Text: NY S05978 | 2017-2018 | General Assembly | Amended
Bill Title: Establishes regulations for the short term rental of private dwellings; defines terms; requires registration and safety precautions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-06-05 - PRINT NUMBER 5978B [S05978 Detail]
Download: New_York-2017-S05978-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5978--B 2017-2018 Regular Sessions IN SENATE 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: 1 Section 1. The multiple residence law is amended by adding a new arti- 2 cle 2-A to read as follows: 3 ARTICLE 2-A 4 SHORT-TERM RESIDENTIAL RENTAL UNITS 5 Section 20. Definitions. 6 21. Short-term residential rental units; regulation. 7 22. Registration. 8 23. Exception. 9 24. Penalties. 10 § 20. Definitions. For the purposes of this article, the following 11 terms shall have the following meanings: 12 1. "Short-term residential rental unit" means an entire dwelling unit, 13 or a room, group of rooms, other living or sleeping space, or any other 14 space, made available for rent by guests for less than thirty consec- 15 utive days, where: 16 (a) the unit is offered for tourist or transient use by the permanent 17 resident of the residential unit; 18 (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. LBD03665-09-8S. 5978--B 2 1 (c) the permanent resident has registered the residential unit and 2 maintains good standing on the short-term residential rental registry 3 maintained by the department of state. 4 2. "Short-term rental host" means an owner or tenant of a short-term 5 rental unit who rents such unit to guests. 6 3. "Hosting platform" means a person or entity who, pursuant to an 7 agreement with a short-term rental host: 8 (a) provides a platform for compensation through which unaffiliated 9 third party short-term rental hosts can offer to rent short-term rental 10 units; and 11 (b) collects a fee in connection with either: 12 (i) providing the forum in which, or by means of which, the offer of 13 occupancy of a short-term rental unit is accepted; or 14 (ii) providing the forum in which a short-term rental host can list or 15 advertise space in a short-term rental unit. 16 § 21. Short-term residential rental units; regulation. 1. A short-term 17 rental host may operate a dwelling unit as a short-term residential 18 rental unit provided such dwelling unit: 19 (a) is registered in accordance with section twenty-two of this arti- 20 cle; 21 (b) is not used to provide single room occupancy as defined by subdi- 22 vision forty-four of section four of this chapter; 23 (c) includes a conspicuously posted evacuation diagram identifying all 24 means of egress from the unit and the building in which it is located; 25 (d) includes a conspicuously posted list of emergency phone numbers 26 for police, fire, and poison control; 27 (e) has a working fire-extinguisher; and 28 (f) is insured by an insurer licensed to write insurance in this state 29 or procured by a duly licensed excess line broker pursuant to section 30 two thousand one hundred eighteen of the insurance law for at least the 31 value of the dwelling, plus a minimum of three hundred thousand dollars 32 coverage for third party claims of property damage or bodily injury that 33 arise out of the operation of a short-term rental unit. Notwithstanding 34 any other provision of law, no insurer shall be required to provide such 35 coverage. 36 2. Occupancies of a short-term rental unit shall be subject to taxes 37 and fees pursuant to articles twenty-eight and twenty-nine of the tax 38 law and applicable local laws. 39 3. Short-term rental hosts shall maintain records related to guest 40 stays for one year, including the date of each booking and the identity 41 and number of guests, and records related to their registration as 42 short-term rental hosts with the division of housing and community 43 renewal. 44 4. Hosting platforms shall maintain records related to guest stays for 45 one year, including the date of each booking and the identity and number 46 of guests. Hosting platforms shall make all relevant records available 47 to the department of state consistent in response to valid legal proc- 48 ess. 49 5. Short-term rental hosts may only list one unit on a short-term 50 rental platform. 51 § 22. Registration. 1. Short-term rental hosts shall be required to 52 register a short-term residential unit with the department of state. 53 2. Registration shall be valid for two years, after which time the 54 short-term rental host may renew his or her registration in a manner 55 prescribed by the department of state. The department of state may 56 revoke the registration of a short-term rental host upon a determinationS. 5978--B 3 1 that the short-term rental host has violated any provision of this arti- 2 cle at least three times in two calendar years, and may determine that 3 the short-term rental host shall be ineligible for registration for a 4 period of up to twelve months from the date the third violation is 5 determined to have occurred. 6 3. The department of state shall set a fee for short-term residential 7 rental unit registration. 8 § 23. Exception. Notwithstanding the provisions of any other law to 9 the contrary, this article shall not apply to: 10 1. a private dwelling or apartment whose permanent resident, family 11 member, or owner remains in the private dwelling or apartment for the 12 duration of any rental period, provided however, that such private 13 dwelling or apartment is in compliance with the standards set forth in 14 the law for bed and breakfast establishments; or 15 2. incidental and occasional occupancy of such dwelling unit for fewer 16 than thirty consecutive days by other natural persons when the permanent 17 occupants are temporarily absent for personal reasons, such as vacation 18 or medical treatment, provided that there is no monetary compensation 19 paid to the permanent occupants for such occupancy; or 20 3. to any individual or owner who rents out their private dwelling or 21 apartment for fewer than thirty consecutive days who earns no more than 22 twenty-five hundred dollars per annum in total for all such applicable 23 rental periods. 24 § 24. Penalties. Notwithstanding the provisions of any other law to 25 the contrary, anyone found in violation of the provisions of this arti- 26 cle shall be subject to a civil penalty of not less than one thousand 27 dollars nor more than twenty-five thousand dollars for each violation. 28 In addition to such civil penalty, a separate additional penalty may be 29 imposed of not more than one thousand dollars for each day that the 30 violation is not corrected. 31 § 2. Subdivision (c) of section 1101 of the tax law, as added by chap- 32 ter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by 33 section 2 and paragraph 8 as added by section 3 of part AA of chapter 57 34 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the 35 laws of 1965, is amended to read as follows: 36 (c) When used in this article for the purposes of the tax imposed 37 under subdivision (e) of section eleven hundred five of this article, 38 and subdivision (a) of section eleven hundred four of this article, the 39 following terms shall mean: 40 (1) Hotel. A building or portion of it which is regularly used and 41 kept open as such for the lodging of guests. The term "hotel" includes 42 an apartment hotel, a motel, boarding house or club, whether or not 43 meals are served, and short-term rental units. 44 (2) Occupancy. The use or possession, or the right to the use or 45 possession, of any room in a hotel. "Right to the use or possession" 46 includes the rights of a room remarketer as described in paragraph eight 47 of this subdivision. 48 (3) Occupant. A person who, for a consideration, uses, possesses, or 49 has the right to use or possess, any room in a hotel under any lease, 50 concession, permit, right of access, license to use or other agreement, 51 or otherwise. "Right to use or possess" includes the rights of a room 52 remarketer as described in paragraph eight of this subdivision. 53 (4) Operator. Any person operating a hotel. Such term shall include a 54 room remarketer and such room remarketer shall be deemed to operate a 55 hotel, or portion thereof, with respect to which such person has the 56 rights of a room remarketer.S. 5978--B 4 1 (5) Permanent resident. Any occupant of any room or rooms in a hotel 2 for at least ninety consecutive days shall be considered a permanent 3 resident with regard to the period of such occupancy. 4 (6) Rent. The consideration received for occupancy, including any 5 service or other charge or amount required to be paid as a condition for 6 occupancy, valued in money, whether received in money or otherwise and 7 whether received by the operator [or], a hosting platform, a room 8 remarketer or another person on behalf of [either] any of them. 9 (7) Room. Any room or rooms of any kind in any part or portion of a 10 hotel, which is available for or let out for any purpose other than a 11 place of assembly. 12 (8) Room remarketer. A person who reserves, arranges for, conveys, or 13 furnishes occupancy, whether directly or indirectly, to an occupant for 14 rent in an amount determined by the room remarketer, directly or indi- 15 rectly, whether pursuant to a written or other agreement. Such person's 16 ability or authority to reserve, arrange for, convey, or furnish occu- 17 pancy, directly or indirectly, and to determine rent therefor, shall be 18 the "rights of a room remarketer". A room remarketer is not a permanent 19 resident with respect to a room for which such person has the rights of 20 a room remarketer. This term does not include a hosting platform. 21 (9) Short-term rental unit. A room, group of rooms, or other living or 22 sleeping space, or any other space let to occupants, including but not 23 limited to private dwellings, residences, or buildings used as resi- 24 dences. 25 (10) Hosting platform. A person or entity who, pursuant to an agree- 26 ment with an operator of a hotel: 27 (i) provides a platform for compensation through which an unaffiliated 28 third party hotel operator offers to rent space in a hotel; and 29 (ii) collects a fee in connection with either: 30 (A) providing the forum in which, or by means of which, the offer of 31 occupancy of a hotel room is accepted; or 32 (B) providing the forum in which a hotel operator can list or adver- 33 tise space in a hotel for occupancy. 34 § 3. Subdivision (e) of section 1105 of the tax law is amended by 35 adding a new paragraph 3 to read as follows: 36 (3) The rent for every occupancy of a room or rooms in a hotel offered 37 for rent through a hosting platform, as defined in paragraph ten of 38 subdivision (c) of section eleven hundred one of this article, regard- 39 less of whether it is furnished, limited to a single family occupancy, 40 or provides housekeeping, food, or other common hotel services, includ- 41 ing, but not limited to, entertainment or planned activities. 42 § 4. Subdivision 1 of section 1131 of the tax law, as amended by 43 section 1 of part X of chapter 59 of the laws of 2018, is amended to 44 read as follows: 45 (1) "Persons required to collect tax" or "person required to collect 46 any tax imposed by this article" shall include: every vendor of tangible 47 personal property or services; every recipient of amusement charges; and 48 every operator of a hotel; and hosting platforms unless relieved of such 49 obligation pursuant to paragraph three of subdivision (l) of section 50 eleven hundred thirty-two of this part. Said terms shall also include 51 any officer, director or employee of a corporation or of a dissolved 52 corporation, any employee of a partnership, any employee or manager of a 53 limited liability company, or any employee of an individual proprietor- 54 ship who as such officer, director, employee or manager is under a duty 55 to act for such corporation, partnership, limited liability company or 56 individual proprietorship in complying with any requirement of thisS. 5978--B 5 1 article, or has so acted; and any member of a partnership or limited 2 liability company. Provided, however, that any person who is a vendor 3 solely by reason of clause (D) or (E) of subparagraph (i) of paragraph 4 (8) of subdivision (b) of section eleven hundred one of this article 5 shall not be a "person required to collect any tax imposed by this arti- 6 cle" until twenty days after the date by which such person is required 7 to file a certificate of registration pursuant to section eleven hundred 8 thirty-four of this part. 9 § 5. Section 1132 of the tax law is amended by adding a new subdivi- 10 sion (l) to read as follows: 11 (l)(1) A hosting platform shall be required to (i) collect from the 12 occupants the applicable taxes arising from such occupancies; (ii) 13 comply with all the provisions of this article and article twenty-nine 14 of this chapter and any regulations adopted pursuant thereto; (iii) 15 register to collect tax under section eleven hundred thirty-four of this 16 part; and (iv) retain records and information as required by the commis- 17 sioner and cooperate with the commissioner to ensure the proper 18 collection and remittance of tax imposed, collected, or required to be 19 collected under this article and article twenty-nine of this chapter. 20 (2) In carrying out the obligations imposed under this section, a 21 hosting platform shall have all the duties, benefits, and entitlements 22 of a person required to collect tax under this article and article twen- 23 ty-nine of this chapter with respect to the occupancies giving rise to 24 the tax obligation, including the right to accept a certificate or other 25 documentation from an occupant substantiating an exemption or exclusion 26 from tax, as if such hosting platform were the operator of the hotel 27 with respect to such occupancy, including the right to receive the 28 refund authorized by subdivision (e) of this section and the credit 29 allowed by subdivision (f) of section eleven hundred thirty-seven of 30 this part. 31 (3) An operator of a hotel is not a person required to collect tax for 32 purposes of this part with respect to taxes imposed upon occupancies of 33 hotels if: 34 (i) the operator of the hotel can show that the occupancy was facili- 35 tated by a hosting platform who is registered to collect tax pursuant to 36 section eleven hundred thirty-four of this part; and 37 (ii) the operator of the hotel accepted from the hosting platform a 38 properly completed certificate of collection in a form prescribed by the 39 commissioner certifying that the hosting platform has agreed to assume 40 the tax collection and filing responsibilities of the operator of the 41 hotel; and 42 (iii) any failure of the hosting platform to collect the proper amount 43 of tax with respect to such occupancy was not the result of the operator 44 of the hotel providing incorrect information to the hosting platform, 45 whether intentional or unintentional. 46 This provision shall be administered in a manner consistent with 47 subparagraph (i) of paragraph one of subdivision (c) of this section as 48 if a certificate of collection were a resale or exemption certificate 49 for purposes of such subparagraph, including with regard to the 50 completeness of such certificate of collection and the timing of its 51 acceptance by the operator of the hotel; provided however, that with 52 regard to any occupancies sold by an operator of the hotel that are 53 facilitated by a hosting platform who is affiliated with such operator, 54 the operator shall be deemed liable as a person under a duty to act for 55 such hosting platform for purposes of subdivision one of section eleven 56 hundred thirty-one of this part.S. 5978--B 6 1 (4) The commissioner may, in his or her discretion develop standard 2 language, or approve language developed by a hosting platform, in which 3 the hosting platform obligates itself to collect the tax on behalf of 4 all the operators of hotels. 5 (5) In the event an operator of a hotel is a room remarketer, and all 6 other provisions of this subdivision are met such that a hosting plat- 7 form is obligated to collect tax, and does in fact collect tax as 8 evidenced by the books and records of such hosting platform, then the 9 provisions of subdivision (e) of section eleven hundred nineteen of this 10 article shall be applicable. 11 § 6. Subpart A of part 1 of article 29 of the tax law is amended by 12 adding a new section 1200 to read as follows: 13 § 1200. Definition. For the purposes of this article "hotel" shall 14 mean a building or portion of such building which is regularly used and 15 kept open as such for the lodging of guests, including: (a) an apartment 16 hotel, (b) a motel, (c) a boarding house or club, whether or not meals 17 are served, and (d) short-term residential rental units as defined in 18 subdivision one of section twenty of the multiple residence law. 19 § 7. Notwithstanding any other provisions of law to the contrary, a 20 county, city, town, or village government may enact a local law prohib- 21 iting or limiting the listing or use of short-term residential rental 22 units. 23 § 8. This act shall take effect on the one hundred twentieth day after 24 it shall have become a law.
