Airbnb fights Hochul on short-term rental registry amid housing crisis (2024)

Gov. Kathy Hochul is deciding whether to sign a bill that would require Airbnb hosts to register their short-term rental units every two years and allow municipalities to collect sales and occupancy taxes on short-term rentals.

As she does, Airbnb and its hosts are pushing against it, saying short-term rentals help hosts earn extra income, are often the only lodging option for travelers in rural areas and aren't the cause of the housing crisis.

The bill, from state Sen. Michelle Hinchey and Assembly Member Patricia Fahy, passed the State Senate and Assembly in the final days of the 2024 legislative session.

Hinchey agreed that Airbnbs are an important component of the tourism economy, are a source of income for homeowners and provided needed lodging in rural communities and other places that do not have sufficient hotel rooms.

But she said the rapidly growing short-term rental industry has exacerbated the housing crisis by reducing available housing, driving up costs and supplanting residents.

"Housing supply is scarce everywhere, and the rise of (short-term rentals) is strangling what little we have left, driving up costs and displacing families because they can no longer afford to live here," she said.

A registry would give municipalities a clearer picture of how Airbnbs are affecting their communities and would raise much-needed tax revenue, she said.

Fahy said the legislation is necessary in what is estimated to be a $1 billion industry outside of New York City.

"It levels the playing field for hotels and motels by extending sales and occupancy taxes to (short-term rentals), creates a statewide registry to track (them) throughout the state, and establishes basic safety standards," she said.

But Airbnb said a state registry isn't necessary.

"Regulations are best handled at the local level to address the needs of individual communities," said Nathan Rotman, Northeast policy lead at Airbnb.

Airbnb is not to blame for the worsening housing crisis, he said. In fact, laws regulating short-term rentals have been in place in New York City for a year, but rent keeps rising and vacancy rates there remain the same, he said. Airbnb said the average host rents out their property only 51 nights per year.

Rotman called the bill "duplicative, unnecessary and cumbersome."

"Over 200 jurisdictions in New York already have short-term rental regulations in place at the local level, and short-term rentals have generated over $1.2 billion in tax revenue in New York State in 2023, alone," Rotman said. "Airbnb has long advocated for a sensible regulatory system that protects economic opportunity and drives tourism forward.”

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Beulah's General Store closing

After eight years in business, Beulah's General Store will close. The gift shop at 726 Main St. in East Aurora is hosting a going-out-of-business sale with increasingly discounted prices.

"I wish I could say that it has been a difficult decision to make to close the store but the reality is my life has shifted and unfolded so beautifully that it is very clear to me I am on the right path," the retailer posted to its Facebook page.

"With the completion of our horse farm, welcoming my horses home, raising three teenagers, and several other factors, I am beyond excited to start this next slower, more intentional chapter," the post said.

Dispensary opens in North Tonawanda

North Tonawanda has its first legal cannabis dispensary.

Satisfied Mind opened at 31 Webster St. in the former Pulp 716 comic book store. That makes it the 15th adult-use cannabis dispensary to open in Western New York.

Six Flags Darien Lake ranks 4th for value

It may come as a surprise to those who have grumbled about concession prices on recent trips to Six Flags Darien Lake, but the park has been ranked fourth-best value among Six Flags parks by intelligence company QR Code Generator. The company ranked parks using criteria including ticket prices, operating hours, number of attractions and shows, food and parking costs, park size, crowd levels and wait times for popular rides.

Each park was rated on a scale of 100, with Six Flags Over Darien Lake scoring 56.57.

Gate ticket prices at Darien Lake are $74.99 The 480-acre park offers 44 attractions, with an average crowd at 62% capacity in August. The most popular attraction, Ride of Steel, typically has a wait time of around 36 minutes.

In the top spot was Six Flags Great Escape in Queensbury, followed by La Ronde in Quebec and Six Flags Over Georgia in Georgia.

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ICYMI

Five reads from Buffalo Next:

1. Orchard Park officials hope proposed zoning law changes will spur development around the new Buffalo Bills stadium.

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5. Canisius University is making progress in its push to adapt to the changing college landscape.

The Buffalo Next team gives you the big picture on the region’s economic revitalization. Email tips to buffalonext@buffnews.com or reach Buffalo Next Editor David Robinson at 716-849-4435.