Sales tax on short-term rental unit occupancy

A booking service that facilitates the sale of a short-term rental unit occupancy located within New York State must register with the Tax Department as a New York State sales tax vendor, and is responsible for collecting New York State and local sales tax and if applicable, the unit fee, on all sales of short-term rental unit occupancies it facilitates for an operator.

A booking service has all the obligations and rights of a sales tax vendor under the Tax Law, including, but not limited to:

• obtaining a Certificate of Authority;
• collecting tax;
• filing returns;
• remitting the tax due; 
• the right to accept exemption certificates; and
• the right to receive a refund.

A booking service must also:

• provide a properly completed Form ST-155, Booking Service Certificate of Collection, to its operators within 90 days of sales of short-term rental unit occupancies it facilitates; or
• have a publicly available agreement with its operators that includes the following statement or one that is substantially similar:
  [Booking service name] is a registered New York State sales tax vendor and will collect sales tax and applicable unit fees on all sales of short-term rental unit occupancy within New York State that it facilitates.
• keep records and cooperate with the Tax Department to ensure proper collection and remittance.

Liability relief for booking services

A booking service is relieved of liability for failure to collect the correct amount of tax and if applicable, unit fees, to the extent it can show the error was due to incorrect or insufficient information provided by the operator. If the booking service and operator are affiliated, this relief of liability does not apply.

An operator of a short-term rental unit located within New York State must register with the Tax Department as a New York State sales tax vendor and is responsible for collecting New York State and local sales tax and the unit fee on the sale of a short-term rental unit occupancy, unless:

• the operator will only rent out its own property for 3 days or less in a calendar year and not use a booking service to facilitate the sales, or
• a booking service will facilitate all sales of short-term rental unit occupancy.

If the occupancy is facilitated by a booking service, the operator is not responsible for collecting sales tax or the unit fee on the sale of the short-term rental unit occupancy only if the operator has:

• received Form ST-155, Booking Service Certificate of Collection, from the booking service, or
• a publicly available agreement with its booking service stating the booking service will collect sales tax and unit fees on these sales.

The operator must keep the Booking Service Certificate of Collection and records about its sales of occupancy facilitated by booking services.

Liability relief for operators

An operator is relieved of liability to collect tax on the sale of a short-term rental unit occupancy if:

• the sale was facilitated by a booking service;
• the operator and booking service have a properly completed Form ST-155, Booking Service Certificate of Collection (or the booking service has a publicly available agreement);
• any failure of the booking service to collect the proper amount of tax on a sale of a short-term rental unit occupancy was not the result of the operator providing the booking service with incorrect information; and
• the operator and booking service are not affiliated.

If an operator gives incorrect information to the booking service about a sale, the Tax Department may bill the operator for the sales tax due on that sale, plus any applicable penalties and interest.

A booking service or operator required to register as a sales tax vendor that is not already registered may do so using New York Business Express.

For more information, see Register as a sales tax vendor.

A booking service or operator registered for sales tax purposes in New York State must file sales and use tax returns and remit the tax due quarterly, part-quarterly (monthly), or annually with the department by the due date, even if it did not make any taxable sales or purchases during the reporting period.

For more information, see Tax Bulletin Filing Requirements for Sales and Use Tax Returns (TB-ST-275) and File sales tax returns.

Reporting sales of occupancy

Booking services, and registered operators reporting sales not facilitated by a booking service

• Sales outside of New York City, Nassau, and Niagara Counties: Report sales in the appropriate jurisdiction of your main sales tax return under Taxable sales and services.
• Sales within New York City: Report sales and unit fees on Schedule N, Taxes on Selected Sales and Services in New York City.
• Sales within Nassau or Niagara Counties: Report sales on Schedule A, Taxes on Selected Sales and Services in Nassau and Niagara Counties.

Registered operators whose sales were facilitated by a booking service for the entire reporting period

• Include these sales in your Gross sales and services and Nontaxable sales figures only.

Penalties and interest

A booking service or operator registered for sales tax purposes in New York State must file returns and remit the tax due by the due date to avoid penalty and interest. Use the Penalty and Interest Calculator to calculate the late filing and late payment penalties and interest due.

For more information on penalties applicable to sales tax vendors, see Sales tax penalties and interest.

For information on records that must be kept, see Tax Bulletin Recordkeeping Requirements for Sales Tax Vendors (TB-ST-770).

Other charges and fees, such as service fees, host fees, cleaning fees, extra person charges, pet fees, and fees for the rental of recreation equipment may be taxable as part of the charge for occupancy, or may otherwise be taxable. See Tax Bulletin Hotel and motel occupancy (TB-ST-331).

A guest must pay state and local sales tax on the sale of a short-term rental unit occupancy until that guest is considered a permanent resident by staying in the rental unit for 90 consecutive days. In New York City only, a guest must pay the local sales tax until that guest has stayed for at least 180 consecutive days. A business meeting certain conditions may also qualify as a permanent resident. See Tax Bulletin Hotel and motel occupancy (TB-ST-331).

A sale of short-term rental unit occupancy may be made tax free if the purchaser gives the booking service or operator a properly completed exemption certificate. In this case, the purchaser is also exempt from the unit fee. See Tax Bulletin Hotel and motel occupancy (TB-ST-331).

A booking service is a person who agrees to facilitate the sale of a short-term rental unit occupancy for an operator by:

• providing a forum for operators to make a sale or accept an offer of sale, including a shop, store, or booth, an internet website, mobile device application, catalog, or similar forum; and
• collecting (or an affiliate collecting) the rent paid by a customer to an operator for the short-term rental unit occupancy, or contracting with a third party to collect such rent.

The term booking service does not include a room remarketer when it facilitates hotel occupancy. Persons that meet the definition of a room remarketer will continue to collect and remit tax on hotel occupancy in accordance with the rules applicable to room remarketers. For more information on room remarketers, see TSB-M-16(2)S, Sales Tax Exemption for Rent Paid by a Room Remarketer to a Hotel Operator.

An operator is any person operating a short-term rental unit.

A booking service and operator are affiliated if:

• one person has an ownership interest of more than 5%, whether direct or indirect, in another; or
• an ownership interest of more than 5%, whether direct or indirect, is held in each person by another person or by a group of affiliated persons.

A short-term rental unit is all or a portion of a building used for the lodging of guests. It includes, but is not limited to:

• a house,
• an apartment,
• a condominium,
• a cooperative unit,
• a cabin,
• a cottage,
• a bungalow,
• a similar furnished living unit, or
• one or more rooms therein.

In a short-term rental unit:

• sleeping accommodations are provided for the lodging of paying occupants,
• the typical occupants are transients or travelers, and
• the relationship between the operator and occupant is not that of a landlord or tenant.

It is not necessary that meals are served. It does not matter if amenities, including but not limited to daily housekeeping services, concierge services, or linen services, are provided or not.

In New York City, a short-term rental unit also includes all or any portion of a building that is a short-term rental, as that term is defined in § 26-3101 of chapter 31 of title 26 of the administrative code of the city of New York.

Occupancy is the use or possession, or the right to the use or possession, of any room in a short-term rental unit.

An occupant is a person who, for a consideration, uses, possesses, or has the right to use or possess, any room in a short-term rental unit under any lease, concession, permit, right of access, license to use or other agreement, or otherwise.

A permanent resident is any occupant of any room or rooms in a short-term rental unit for at least 90 consecutive days without interruption. In New York City only, an occupant must have stayed for at least 180 consecutive days without interruption. For the unit fee, an occupant is a permanent resident when they have stayed for at least 90 consecutive days without interruption.

Rent is the consideration received for occupancy, including any service or other charge or amount required to be paid as a condition for occupancy, valued in money, whether received in money or otherwise and whether received or collected by the booking service, operator, or another person on behalf of them.

A room is any room or rooms of any kind in any part or portion of a short-term rental unit, which is available for or let out for any purpose other than a place of assembly.

Is sales tax due on a short-term rental unit occupancy where the sale was made prior to March 1, 2025, but the occupancy will occur on or after that date?

Sales tax is not due on the sale if the entire amount of rent was collected prior to March 1, 2025.

The rent on a sale of a short-term rental unit occupancy is being paid in installment payments. One payment was made prior to March 1, 2025, one payment was made on March 1, 2025, and the remaining payments are due after that. When is sales tax collected?

Sales tax must be collected on payments made on and after March 1, 2025.

A short-term rental unit in New York State was rented by an occupant for 120 consecutive days. The full charge for occupancy was paid in advance. Since the occupant will meet the definition of a permanent resident, do I have to collect sales tax?

If the full amount of the rent charged is paid before occupancy begins, you must collect state and local sales tax on that amount, even though the occupant has the right to occupy the room for more than 90 consecutive days. Once the occupant has reached 90 days of occupancy, you may credit the occupant’s account or refund the tax already paid. If you do not credit the account or refund the tax, the occupant may apply directly to New York State for a refund. For more information, the occupant should see Tax Bulletin How to apply for a refund of Sales and Use Tax (TB-ST-350).

A short-term rental unit in New York City was rented by an occupant for 200 consecutive days. The charge for occupancy will be paid on a weekly basis. Since the occupant will meet the definition of a permanent resident, do I have to collect sales tax?

If the rent charged is paid weekly or on some other recurrent basis, you must collect the unit fee and state and local sales tax on that amount even though the occupant has the right to occupy the room for more than 180 consecutive days. Once the occupant has reached 90 days of consecutive occupancy, you may stop collecting the state sales tax and unit fee and credit the occupant's account or refund the state sales tax and unit fee already paid. Once the occupant has stayed for 180 consecutive days, you may stop collecting the city sales tax and credit the occupant’s account or refund the city sales tax already paid. If you do not credit the account or refund the tax, the occupant may apply directly to New York State for a refund. For more information, the occupant should see Tax Bulletin How to apply for a refund of Sales and Use Tax (TB-ST-350).

As a booking service, do I collect tax on sales I facilitate for all operators or only those located in New York State?  

You must collect tax on all sales of short-term rental units in New York State, regardless of the location of the operator. This includes operators located in and outside New York State.

Does the requirement to collect sales tax on third-party sales of short-term rental units apply only to online booking services?

No. A physical business, such as a real estate office, store, or booth, a mobile device application, or catalog may also be included under the definition of a booking service if it is facilitating sales of short-term rental unit occupancy. If you have one of these, you and your operators should review the requirements concerning the Booking Service Certificate of Collection and reporting sales on your periodic sales tax returns.

What is a Certificate of Collection and why do I need one?

Each booking service facilitating sales of short-term rental unit occupancy must issue you, the operator, a Booking Service Certificate of Collection. This lets you know you do not have a sales tax collection requirement on sales the booking service facilitates. It also allows you to document why you did not collect tax on sales of short-term rental unit occupancy. Alternatively, the booking service can provide a publicly available agreement specifying the booking service will collect sales tax on all sales of short-term rental unit occupancies in New York State it facilitates.

I am an operator of a short-term rental unit located in New York State and all sales of occupancy are facilitated by a booking service. Do I need to register as a sales tax vendor?

You do not need to register as a sales tax vendor if you have received Form ST-155, Booking Service Certificate of Collection, from the booking service or there is a publicly available agreement specifying the booking service will collect sales tax on all sales of short-term rental unit occupancies in New York State it facilitates.

I am an operator that rents out my own property for 3 or fewer days a year and I do not use a booking service. Do I need to register as a sales tax vendor?

No, you do not need to register. There is an exemption to the registration requirement for an operator that rents out their own property for 3 or fewer days a year.