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Airbnb Wars!
Ulster County Holds Back Tax Revision That Holds Back Regulation

REGIONAL – Airbnb is constant. Sign up for it any point, put your site in dormancy, and the requests still come in, especially on the off-chance that you have something to offer come the summer. The Hudson Valley and Catskills are hot, and for many escaping New York City, or headed here from elsewhere to see what all the buzz is about, short term rentals are the best way to get out into the communities many are thinking of one day joining.

We know of local business visionaries aiming for the market in downtown Ellenville. There have been worries about who's renting what in Crawford. In Rochester, regulations have been proposed for those renting out self-contained units with kitchens and bathrooms, rather than in someone's home. The towns of Woodstock, Saugerties and City of Kingston have been rocked by new attempts to stem growing tides of weekend visitors, damage to long-term rental markets, and efforts to make some municipal money off the phenomenon.

According to Ulster County Comptroller Elliott Auerbach, however, equally constant to short term rental's rise in our area is our local legislature's reluctance to look at Airbnb and its other shared economy home rental upstarts' presence as a key economic force. He pointed out in a recent interview that it's been over a year since he submitted legislation to add short term and vacation rentals to the county's "bed tax" laws, and even longer since he reached an agreement with Airbnb management for the industry giant to start voluntarily tracking, collecting, and paying such income to the county.

Ulster County Legislature Chairman Ken Ronk (R-Shawangunk) countered by noting that instead of reluctance, what's been holding things up are legal details. He said that he's waiting for Albany to okay the County to collect the local bed tax from a third party, as in the West Coast-based shared economy giant Airbnb.

Airbnb, for its part, said that the current slowness of action in Ulster County is basically pro forma for an industry still working out its kinks, legislatively, around the state and nation. And according to the company's New York/New England Press Secretary Peter Schottenfels, it's just such issues that will be raised at a state capitol lobbying day being set up for early May.

"Neighboring counties, including Sullivan, have embraced the sharing economy model and are reaping the benefits through bed taxes," Auerbach emailed when asked how his proposed 21st Century Bed Tax legislation of March, 2016 was doing. "Using Airbnb numbers we estimated that the county would realize over $250,000 annually; money that could be reinvested into tourism, shared with municipalities to address local concerns and reduce taxes."

Later, Auerbach talked about how he'd counted over 1,000 short term rental units around the county servicing 54,000 visitors at the minimum. While the majority of those were in Woodstock, Kingston and New Paltz, the phenomenon was growing in Saugerties, Stone Ridge and elsewhere. But according to him, the legislature wasn't buying it.

"I think we're asleep at the wheel. This was THE big issue at the state's Association of Towns meetings two years ago and here we have legislators who still don't believe it's a real economic force," Auerbach added. "They're comfortable with the hotel and motel laws as they are, and aren't ready to acknowledge the changes that the sharing economy are bringing our way. Over a dozen counties have laws like I have proposed already. It's myopic thinking."

Ronk, meanwhile, answered that the comptroller was refusing to look at the time proper process takes, adding that Auerbach's proposal and Airbnb negotiations were an attempt to "get us to backdoor state law" and could risk the county to major lawsuits from Airbnb landlords.

"We are trying to get state authority to collect our bed tax from a third party," the Legislature Chairman reiterated. "Right now, those renting through Airbnb have to pay the county occupancy tax, but because of how home sharing works we can't be certain everyone is paying by the normal ways we do bed tax. Two hundred rooms at a Hampton Inn is easy; they're used to paying the bed tax, as are traditional bed and breakfasts. We don't have the authority at present to accept the Airbnb offer."

Ronk added that he's been speaking with state senators about the authority he wants.

"I imagine that before they adjourn in June we'll be able to get that authority," he said of the Republican side of the state legislature.

"Airbnb already has tax collection agreements in place in twelve counties in New York including Dutchess, Sullivan and Delaware Counties," countered Schottenfels, after speaking to Airbnb headquarters in San Francisco. "An agreement here could be a huge revenue boost for Ulster County, and we are ready to start as soon as they give us the green light."



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