New Short-Term Rental Tax Law Shakes Up Hudson Valley & Catskills Airbnb Market

New York State has enacted first-of-its-kind legislation to regulate short-term rentals (STRs) statewide – a move with major implications for popular vacation rental areas like the Hudson Valley and Catskills. Senate Bill S885 (Hinchey) and its chapter amendment (designated Chapter 99 of the Laws of 2025) establish a statewide short-term rental registry along with new tax collection and data reporting requirements (NY State Senate Bill 2023-S885B) (NYSAC Issues: Short-Term Rentals).

New Short-Term Rental Tax Law Shakes Up Hudson Valley & Catskills Airbnb Market – by Maxwell Alexander, EIC, Hudson Valley Style Magazine

Signed by Governor Kathy Hochul in late 2024 and finalized in early 2025, this law aims to bring transparency and accountability to platforms like Airbnb and VRBO, ensuring they pay their fair share of taxes and share key data with local governments (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov) (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov). For hosts in Dutchess, Greene, Ulster, Orange, and Columbia counties, the heart of the Hudson Valley/Catskills STR boom, these changes mark the start of a more regulated — and complex — era for vacation rentals.

New Short-Term Rental Tax Law Shakes Up Hudson Valley & Catskills Airbnb Market – by Maxwell Alexander, EIC, Hudson Valley Style Magazine

Statewide Short-Term Rental Registry and New Tax Requirements

S885C/A4130C, sponsored by Senator Michelle Hinchey (D–Hudson Valley) and Assemblymember Patricia Fahy, created New York’s first statewide Short-Term Rental Registry (First-Of-Its-Kind Short-Term Rental Law Signed by Governor Hochul). Under the new law, all short-term rental operators will be required to register in order to legally list their properties. In fact, hosts who fail to register with their county will be barred from listing on any booking platform – platforms like Airbnb must verify a host’s registry number with the county before allowing a listing (NYSAC Issues: Short-Term Rentals). This ensures every STR is on the books. The registry system was designed to give communities a county-by-county view of the explosive growth in STRs and help manage associated housing and tax issues (First-Of-Its-Kind Short-Term Rental Law Signed by Governor Hochul) (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov).

Crucially, the law also mandates new tax collection rules starting in 2025. Beginning March 1, 2025, every short-term rental booking must include sales tax collection – this means hosts or the platforms must collect New York’s 4% state sales tax plus any applicable local sales taxes on the rental income (NYSAC Issues: Short-Term Rentals). Prior to this law, many upstate Airbnb hosts operated in a gray area, and counties struggled to capture all the taxes owed on STR stays. Now, those taxes are obligatory: short-term rentals are subject to the same sales taxes as hotels. In the words of NYS Association of Counties President Benjamin Boylin, the legislation “places short-term rentals on a level playing field alongside hotels and motels and [generates] local revenue from visitors” for essential services (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov).

The law also tackles occupancy taxes (often called “bed taxes” or hotel taxes). It gives counties the option to require platforms to collect their local hotel occupancy tax on STR bookings – but only if the county establishes a registry and passes a local law opting in (NYSAC Issues: Short-Term Rentals) (NYSAC Issues: Short-Term Rentals). Many Hudson Valley and Catskills counties already levy an occupancy tax on hotel rooms (for example, Dutchess County’s 4-5% hotel tax (Hotel Occupancy Tax – Dutchess County, NY) and Ulster County’s “bed tax”), and this new state framework allows them to apply those taxes to Airbnb-style rentals as well. Counties must update their local laws to include short-term rentals in the tax, but once they do, Airbnb and similar services will be legally required to collect and remit those occupancy taxes on each booking (NYSAC Issues: Short-Term Rentals). In short, if you rent out a home in these counties, your guests will start paying the same taxes as if they booked a hotel. This closes a longtime loophole and is projected to bring in significant revenue that was previously going uncollected – an estimated $550 million in unpaid sales and occupancy taxes statewide over the last five years (First-Of-Its-Kind Short-Term Rental Law Signed by Governor Hochul).

Data Reporting Obligations: No More “Under the Radar” Rentals

Beyond taxes, New York’s law imposes new data reporting obligations on rental platforms. Each quarter, booking platforms must report key metrics to the NYS Department of State, including the number of bookings in each county, the rental addresses/locations, total nights booked, guest counts, and taxes collected (First-Of-Its-Kind Short-Term Rental Law Signed by Governor Hochul) (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov). Counties that set up a local STR registry will receive even more detailed quarterly reports for their jurisdiction (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov). This data-sharing is a breakthrough for local officials who, until now, often had to guess at or scrape together information on how many Airbnbs operate in their area.

For the Hudson Valley and Catskills – where STR growth has been dramatic – this transparency is especially significant. In communities like Woodstock (Ulster County), it’s estimated that up to 11% of homes were being used as short-term rentals when counting unregistered listings (Increase in short-term rentals puts the squeeze on local budgets – Hudson Valley One). Local governments have struggled to identify illegal listings and assess their impact. Companies like Airbnb historically were “cagey about providing their data, even to municipalities” (Increase in short-term rentals puts the squeeze on local budgets – Hudson Valley One), hampering enforcement of local rules. Now, with the state-mandated registry and reporting, every rental will be accounted for. Town and county officials in Ulster, Dutchess, Greene, Orange, Columbia and beyond will for the first time have a clear window into the STR activity in their communities. They’ll know how many rentals are active, where they are, and how frequently they’re rented, which can inform zoning decisions and housing policy. As Senator Hinchey noted, “for the first time, communities will have the tools to grasp the true scope of short-term rentals,” enabling them to balance the tourism economy with housing needs (First of its kind: Short-term rental registry is state law in New York – Hudson Valley One) (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov).

From a host’s perspective, these reporting rules mean there is no hiding in the shadows. Every Airbnb booking in the state will be logged and reported to government authorities. Hosts who may have been operating “under the radar” without paying taxes or complying with local laws will now be exposed by the data. Compliance is no longer optional – it’s being automated. Platforms will likely require hosts to provide their county registry ID and will include all relevant taxes in the checkout for guests. Hosts can expect new prompts from Airbnb/Vrbo to confirm they are registered and in compliance, or else face deactivation. The era when a casual host could simply list a spare room online and treat it as side income without oversight is coming to an end, especially in the highly-trafficked Hudson Valley and Catskills region.

Implications for Hudson Valley & Catskills Hosts and Counties

The Hudson Valley and Catskills – including Dutchess, Greene, Ulster, Orange, and Columbia counties – have become hotbeds of short-term rentals in recent years, as city dwellers flocked to the region’s scenic getaways. Local officials have voiced concerns that the STR boom was driving up home prices and straining housing supply for residents (First of its kind: Short-term rental registry is state law in New York – Hudson Valley One) (Increase in short-term rentals puts the squeeze on local budgets – Hudson Valley One). Not coincidentally, the new registry law was championed by upstate legislators and welcomed by local governments eager for more control. “The Hudson Valley and communities across New York have been counting on us to get this bill across the finish line,” Senator Hinchey said upon its passage (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov). Indeed, these counties stand to gain both better housing data and much-needed tax revenue from the changes.

For counties, the immediate benefit is financial: STR platforms will now collect state and local sales taxes on every short-term rental stay and remit those funds to New York State, which then distributes the local share back to counties (NYSAC Issues: Short-Term Rentals). This means Dutchess, Orange, Ulster, Greene, Columbia and their towns will see a boost in sales tax receipts attributable to Airbnb-style rentals. Additionally, if they haven’t already, each county can opt to amend its lodging tax law to include short-term rentals and require platforms to collect the nightly occupancy tax from guests (NYSAC Issues: Short-Term Rentals) (NYSAC Issues: Short-Term Rentals). Given the popularity of weekend rentals in the Catskills ski towns and Hudson Valley river towns, those occupancy taxes could substantially increase tourism funding for these counties. Ulster County, for example, which already has a 2% occupancy tax on STRs, recorded hundreds of thousands of dollars in STR tax revenue in recent years ([PDF] Understanding Short-Term Rentals – Dutchess County Government) – now, with the state mandate, compliance will be near-universal, and revenues could climb further without relying on voluntary agreements with platforms. Counties will, however, need to set up the administrative infrastructure for the registry (which the law allows them to fund via charging registration fees to hosts (NYSAC Issues: Short-Term Rentals)).

For hosts in the region, the law brings new obligations and adjustments. First, every host will need to register their rental with the county (or applicable registry authority). The specifics may vary by county, but generally this means filling out an application for a permit or registration number for each STR property, possibly paying a fee, and providing details about the home. Hosts in many Hudson Valley towns are already familiar with permitting – for instance, towns like Woodstock, New Paltz, and Kingston have local STR permit laws. Now, even in areas that didn’t have local registration, a county-level registration may be required. No listing will go live on Airbnb without a valid registry ID once the system is in effect (NYSAC Issues: Short-Term Rentals). Hosts who operate in multiple counties (say you have one cabin in Ulster and another in Greene) might have to register in each county separately.

Secondly, hosts will see automatic tax deductions on their payouts for the required sales and possibly occupancy taxes. Airbnb and Vrbo will add the appropriate taxes on top of the nightly rate charged to guests, then remit it to the state, so hosts should prepare for slightly higher guest-facing prices (to account for, say, an 8% sales tax and a 2-4% occupancy tax depending on the county). Importantly, hosts must ensure their listings are updated to charge these taxes. According to guidance from the NYS Association of Counties, any existing bookings that occur after the law’s start date will need to have taxes added even if they were booked under old rules (NYSAC Issues: Short-Term Rentals). This is a critical detail for hosts: if you pre-sold dates in spring 2025 without charging tax, you are still responsible for remitting the required taxes on those stays. In practice, platforms may handle this automatically, but it’s wise to double-check.

There’s also a record-keeping aspect. The state law requires maintaining certain records, and with quarterly reports being generated, hosts should keep tidy booking logs as well. Alluvion Vacations’ Director of Hospitality Experience, Dino Alexander – a NYS Licensed Real Estate Broker who oversees many rentals in the Hudson Valley – notes that staying on the right side of these new rules will require diligence. “Understanding local regulations is not just a necessity, it’s a commitment to maintaining the charm and safety of our beloved regions,” says Alexander (Navigating Vacation Rental Compliance in the Hudson Valley and Catskills: Expert Tips from the Pros | Hudson Valley Style Magazine). In other words, compliance isn’t about bureaucracy for its own sake; it’s about protecting the community and the guest experience. By mandating things like fire safety checks (often part of local permit processes) and tax contribution to local coffers, the new system intends to make STRs more sustainable in communities.

Why Amateur Hosts Will Struggle – and How the Industry is Professionalizing

For “casual” Airbnb hosts who have been managing one or two properties on their own, these added layers of compliance may feel overwhelming. What was once as simple as creating a listing and welcoming guests now entails navigating a web of regulations: getting registered, understanding tax rules, adjusting listing pricing for taxes, and ensuring one’s property meets any applicable safety or zoning requirements. The margin for error is shrinking – a missed registration renewal or failure to collect tax could result in penalties or de-listing. As Dino Alexander points out, “Compliance isn’t just about following rules; it’s about creating a safe and enjoyable environment for everyone involved.” (Navigating Vacation Rental Compliance in the Hudson Valley and Catskills: Expert Tips from the Pros | Hudson Valley Style Magazine) This professional mindset is something every host will need to adopt, but not every host has the time or expertise to do so.

Professional vacation rental management services have therefore become more crucial than ever for those who want to stay in the STR game. Companies like Alluvion Vacations (which operates across the Hudson Valley and Catskills) specialize in handling all these compliance and operational burdens on behalf of owners. For a percentage of the rental income, a professional manager will ensure your property is properly registered, licensed, and tax-compliant, and will keep up with ever-changing laws. This kind of service is increasingly invaluable because New York’s new rules essentially turn hosting into a business that must be managed professionally, not just a hobby. “Managing a vacation rental property can be a full-time job, especially if you have multiple properties,” an STR management primer in Hudson Valley Style Magazine explains (Pros and Cons of Short-Term Rental Property Management: Manage Your Vacation Rental Property Yourself or Hire a Property Manager? | Hudson Valley Style Magazine). The pros list is long: time savings, expertise, marketing, 24/7 guest support – and now, add legal compliance to that list of benefits (Pros and Cons of Short-Term Rental Property Management: Manage Your Vacation Rental Property Yourself or Hire a Property Manager? | Hudson Valley Style Magazine).

Amateur hosts are likely to struggle with compliance simply due to the complexity. Consider a single homeowner trying to decode the fine print of Chapter 99, file the right paperwork with the county clerk, integrate tax collection into their booking settings, and maybe coordinate safety inspections – all on their own. It’s a lot to handle without a background in property management or law. By contrast, professional managers have systems and teams in place to manage these tasks efficiently (Pros and Cons of Short-Term Rental Property Management: Manage Your Vacation Rental Property Yourself or Hire a Property Manager? | Hudson Valley Style Magazine). They often work directly with local officials and stay ahead of new regulations. In the Hudson Valley, where regulations can differ town by town, that know-how is vital. “With the guidance of experts like Dino Alexander and the support of professional management companies like Alluvion Vacations, navigating the regulations…ensures rentals are both safe and profitable,” one industry publication advises (Navigating Vacation Rental Compliance in the Hudson Valley and Catskills: Expert Tips from the Pros | Hudson Valley Style Magazine). In essence, pros not only keep you legal, but also help maximize your rental’s success in this new environment.

Finally, we are seeing an industry shift toward professionalization. As STR rules tighten, there is a natural consolidation where more properties get managed by dedicated firms rather than mom-and-pop hosts. New York’s law accelerates this trend – it injects a level of oversight that “levels the playing field” (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov) (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov) between STRs and traditional hospitality. That means STR hosts must now operate with similar discipline and standards as hotels. Many savvy homeowners in the Catskills and Hudson Valley are preemptively partnering with management companies to handle the heavy lifting, from compliance to marketing. Dino Alexander, who wears multiple hats in real estate and hospitality, has observed how the DIY approach to hosting is becoming less viable. He notes that being a successful host now “is not just about handing over the keys – it’s about delivering a professional hospitality experience within regulatory guidelines.” That experience includes everything from guest vetting and cleaning protocols to paying taxes on time.

The Bottom Line

For short-term rental hosts in the Hudson Valley and Catskills, 2025 will bring sweeping changes. New York State’s short-term rental registry law (S885/Chapter 99) means increased oversight, required registration, automatic tax collection, and data reporting that cannot be ignored (NY State Senate Bill 2023-S885B) (Hinchey, Fahy Deliver First-of-its-Kind Short-Term Rental Law for New York | NYSenate.gov). While these measures will funnel much-needed revenue to local governments and help protect housing affordability, they also raise the bar for what it takes to operate a legal STR business. Amateur hosts face a steep learning curve to comply with the new rules and avoid penalties. On the flip side, those changes open the door for professional management firms like Alluvion Vacations to step in as compliance experts and strategic partners for homeowners. By entrusting their properties to professionals, hosts can ensure they meet every new requirement – from registry filings to tax remittances – while still providing top-notch guest experiences.

In this new era of regulated short-term rentals, knowledge and professionalism are king. Hosts in Ulster, Dutchess, Greene, Orange, Columbia and beyond should treat their rentals not as a casual side gig, but as a fully fledged hospitality business – one that must follow state and local laws closely. The message from industry experts is clear: get educated, get registered, pay your taxes, or get help from professionals who can do it for you. “Understanding local regulations is not just a necessity… It’s a commitment,” says Dino Alexander (Navigating Vacation Rental Compliance in the Hudson Valley and Catskills: Expert Tips from the Pros | Hudson Valley Style Magazine) – a commitment that will separate those who thrive under the new law from those who may decide hosting is no longer worth the hassle. The Hudson Valley and Catskills STR market is maturing, and those who embrace a professional, compliant approach are poised to continue profiting from the region’s tourism allure, now on a firmer and more sustainable foundation.