KEY TAKEAWAYS
- Albany County voted to apply a hotel-style occupancy tax to short-term rentals
- County officials say the measure will help level the playing field between STRs and hotels
- The tax rollout depends on a new STR registry system currently being developed with Deckard Technologies
A New York county has signed off on approval to start taxing short-term rentals.
On Monday, the Albany County Legislature approved a 6.5 percent hotel occupancy tax on STRs, extending a levy that previously applied only to traditional hotels and motels, according to “The Daily Gazette.”
On the upside for operators, the tax won’t take effect until a county-wide registry is established.
The legislation passed along party lines, with all Republican members voting against the measure.
The county estimates the tax could bring in almost $1 million annually once fully implemented.
Data from AirDNA shows that Albany County has about 717 listings with revenue of around $1.4 million.
Operators must register with the county’s Department of Management and Budget to receive a certificate of authority allowing them to collect the tax from guests.
The legislature is in talks with Deckard Technologies, an STR management database, to create an accessible registry to ensure STR operators comply with the law.
The tax will be billed separately from sales tax and must appear as a distinct line item on guest invoices.
Debate grows over fairness of new STR tax
County legislator Paul Bergdorf, who opposed the measure, called it an unnecessary burden on small business owners.
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At the same time, bill sponsor Lynne Lekakis defended the tax, arguing that exempting owner-occupied properties would create an unfair advantage.
“Short-term rentals “are across so many platforms you can’t keep track,” Lekakis said bluntly.
Lekakis argued that there was a lack of financial accountability for short-term rental operators, as they aren’t required to pay the same taxes as hotels despite similar services.
The county legislature also defended the measure in a Facebook post that said by expanding the Hotel Occupancy Tax, it would “level the playing field” for STRs and local hotels.
“The change will garner new tax revenue to fund county and local services,” the post said.
Less than 30% of STRs in the county are identified as a “private room,” usually meaning the owner lives in the home or building, according to data from Airroi.
Hosts should monitor updates from Albany County on the registry launch timeline, as the tax obligation hinges on that system going live.
