Washington Co. amends its Occupancy Tax so all short-term rentals must pay 4%

By Caroline Martindale, Chronicle Staff Writer

The Washington County Board of Supervisors approved an amendment to the its Occupancy Tax law on Aug. 16 to require a 4% tax be collected anywhere a fee is imposed for an overnight stay regardless of how many units are available.

The law specifies short-term rentals — a dwelling rented for fewer than 30 consecutive days.

“Our existing local law (Chapter 102 of the Laws of 2009) covers hotels, motels and short-term rentals with four or more units,” Washington County Treasurer Al Nolette told The Chronicle.

Under current law, rentals with fewer than four units aren’t required to collect Occupancy Tax, although the county has “a voluntary agreement with Airbnb,” Mr. Nolette said. “So, anybody who has Airbnb in Washington County, and the client books through Airbnb, will voluntarily collect the 4% [tax].”

Airbnb is the only short-term rental booking platform with a voluntary tax collection agreement with the County.

There is doubt whether Airbnb will continue the current arrangement.

“Our understanding from NYSAC (New York State Association of Counties) is that Airbnb is slowly not renewing contracts,” Laura Oswald, Washington County’s Economic Development Director told The Chronicle.

At the Agency and Planning meeting on June 25, Ms. Oswald said Airbnb used to have over 30 voluntary collection agreements with counties across the state but it had strunk to only half a dozen.

Washington County re-wrote the Occupancy Tax law to protect its revenues after a bill regulating short term rentals was delivered by the state legislators to Governor Kathy Hochul.

It’s awaiting her signature.

S885B/A4130A would create a short-term rental registry and collect Occupancy Tax through a state agency.

The State and short-term rental owner would keep a record of all overnight stays to be given quarterly to the municipality where the host is registered.

The bill requires all short-term rentals to register with the state and pay a fee. The registration would be renewed every two years.

Ms. Oswald told The Chronicle if the Governor signs the law, it would increase Occupancy Tax and Sales Tax revenue and allow the county to collect Occupancy tax from other booking platforms like Vrbo. However, it would come with the loss of the Airbnb contract.

Ms. Oswald said, “There is a possibility that they could cancel our agreement, which if the new law goes into effect, would automatically happen anyway.”

Washington County’s contract allows either party to cancel with 30 days notice. “But for us, that would mean a loss of revenue between the time Airbnb cancelled the agreement and the time there were any new revenues that were collected as a result of the new legislation.”

Mr. Nolette said Washington County makes more money in its voluntary contract with Airbnb than traditional Occupancy taxes.

In the 2023 tax year, the county received $17,819 in occupancy tax from hotels, motels and short-term rentals and $117,232 from Airbnb. The money collected is added to the tourism budget.

Fort Ann is the only town in Washington County with its own short-term rental registry. The county only collects Occupancy Tax from Fort Ann’s Airbnbs per the voluntary tax contracts.

If Governor Hochul signs the bill, Fort Ann will keep its own registry, superseding that of the state. However, it will be the rental owners’ responsibility to release their collection reports to the state instead of the booking platforms.

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