New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know

New York State has recently passed significant legislation that directly impacts short-term rental (STR) hosts across the Hudson Valley and Catskills. Senate Bill S885B and Chapter 99 of the Laws of 2025 introduce a statewide short-term rental registry and new tax collection requirements that will reshape the vacation rental industry. If you operate a short-term rental in Dutchess, Greene, Ulster, Orange, or Columbia counties, it’s crucial to understand these changes and how they affect your business.

New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know

As of March 1, 2025, all STR operators must comply with mandatory registration, sales tax collection, and data reporting. These changes make it clear that short-term rentals are no longer just a side hustle—every Airbnb or vacation rental listing must now function as a fully licensed and tax-compliant business.

Statewide Short-Term Rental Registry and Tax Requirements

A key component of the new legislation is the New York State Short-Term Rental Registry, which requires all STR operators to register their properties every two years. Airbnb, Vrbo, and other booking platforms will only allow registered properties to be listed, ensuring full compliance with state laws. Failure to register will result in deactivation of listings.

New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know

Additionally, all STRs are now subject to state and local sales tax collection, aligning them with hotels and motels. This means that hosts must charge guests:

  • 4% New York State sales tax
  • Local county sales tax (varies by location)
  • Occupancy tax (if applicable, depending on local laws)

Counties such as Dutchess, Ulster, and Greene already impose hotel occupancy taxes, and the new law ensures that STRs contribute the same revenue as traditional lodging businesses. This eliminates tax loopholes that previously allowed amateur hosts to operate without collecting and remitting taxes.

View the official New York State Senate Bill S885B here.

New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know

How This Affects Short-Term Rental Hosts in the Hudson Valley & Catskills

The data reporting requirements included in this legislation mark another major shift. Airbnb, Vrbo, and other platforms must now report quarterly data to the NYS Department of State, including:

  • The number of short-term rental bookings per county
  • Rental locations and property details
  • Total nights booked and guest occupancy
  • Taxes collected and remitted

For local municipalities in the Hudson Valley and Catskills, this transparency provides valuable insight into STR activity. It also means hosts can no longer operate “under the radar”—all rental income will be logged and reviewed by the state.

Read more about New York’s Short-Term Rental Registry.

New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know

Why This is the Time to Switch to Professional Vacation Rental Management

These new legal and tax requirements make it nearly impossible for amateur hosts to manage short-term rentals alone. The process now involves business registration, tax collection, compliance with local zoning laws, and maintaining detailed financial records—tasks that require expertise in real estate, accounting, and legal compliance.

New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know

According to Dino Alexander, NYS Licensed Real Estate Broker at ALLUVION INC. and Director of Hospitality Experience at Alluvion Vacations, this marks a turning point in the short-term rental industry:

“Managing a vacation rental property is no longer as simple as listing it on Airbnb. With these tax and registration changes, it’s now a full-fledged business operation requiring professional management. Homeowners who want to continue renting successfully should consider working with licensed realtors who specialize in vacation rental compliance and optimization.”

By partnering with a professional vacation rental management company like Alluvion Vacations, a division of ALLUVION INC., hosts can ensure that their properties are fully compliant with new regulations, properly registered, and optimized for maximum revenue. A dedicated management team handles:

  • Registration & permitting with New York State
  • Automated tax collection & filing
  • Marketing & guest experience management
  • Property maintenance & legal compliance

For homeowners in Dutchess, Greene, Ulster, Orange, and Columbia counties, working with experts is now the smartest and safest way to navigate the new legal landscape.

New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know

Dino Alexander’s Take on the New Law and Industry Shift

Dino Alexander, a NYS Licensed Real Estate Broker and Director of Hospitality Experience at Alluvion Vacations, offers insights on the new legislation and its impact on vacation rental hosts:

“This law completely transforms the short-term rental market in New York. We’re seeing a necessary shift from casual hosting to fully professionalized operations. It’s no longer just about listing a property on Airbnb; it’s about compliance, financial management, and delivering a seamless guest experience.”

“Hosts who fail to adapt to these new requirements will struggle to keep their listings active. This is why working with an expert team like Alluvion Vacations is crucial. We take care of everything—registration, tax compliance, marketing, and guest relations—so that property owners can focus on enjoying their investment without the administrative burden.”

For a deeper analysis of how this law impacts Hudson Valley and Catskills vacation rental hosts, check out this detailed breakdown on Hudson Valley Style Magazine.

Final Thoughts: The Future of Short-Term Rentals in NY

The short-term rental market in New York State is evolving rapidly, and the new tax laws signify a shift toward professionalized vacation rental management. With state-mandated registration, sales tax collection, and data reporting, the era of casual Airbnb hosting is over. To continue benefiting from the short-term rental industry, homeowners must treat their properties as fully operational businesses.

For expert guidance and full-service vacation rental management, contact Alluvion Vacations today and ensure your property remains compliant and profitable under the new law.

New York State’s New Short-Term Rental Tax Law: What Hosts Need to Know