We wrote a few days ago about a new law passed in New York, aimed at stopping short-term Airbnb rentals. Based on the new law, those who rent out an entire apartment for a stay shorter than 30 days would be fined $1,000 after first offense, $5,000 after the second one and $7,5000 for their third offense and beyond.
Airbnb turned around and sued the city of New York, Attorney General Eric Schneiderman and Mayor Bill de Blasio on the same day. Following that suit, Bloomberg reports that the city and state of New York said Monday they would hold off enforcing a new law restricting short-term apartment sublets against Airbnb Inc. until the company’s lawsuit over the issue is resolved. That was a reversal from earlier indications that the restrictions would be enforced immediately after New York Governor Andrew Cuomo signed them into law on Friday.
New York City, with more than 100,000 hotel rooms, received $560 million in revenue from so-called bed taxes in 2015, according to a report by the state comptroller’s office. But revenue has begun to edge lower, with officials citing the effect of companies like Airbnb.
New York state’s law prohibits apartment dwellers from advertising their units for short-term rental while they are away. People are allowed to rent a room as long as the resident is staying there too.
In its filing Monday, New York City said it would continue to “take any procedural and administrative steps necessary” to enforce the law if it is ultimately upheld.
The case is Airbnb Inc. v. Schneiderman, 16-cv-08239, U.S. District Court, Southern District of New York (Manhattan).
