Hotel, Motel and Short-Term Rental Occupancy Tax

Operators of hotels, motels, and short-term rentals (STRs) in Ulster County are responsible for collecting a 4% occupancy tax from occupants as a separate charge from the nightly room rent.

Hotel/Motel

Step 1.Register with the County

If you operate a hotel, motel and STR located within Ulster County, you must file an application for a Certificate of Authority to collect the tax from occupants within three days of commencing business. Learn more

Step 2.Display your Certificate of Authority

Once you receive your Certificate of Authority, you must prominently display it at your lodging where it will be seen by all occupants and persons seeking occupancy.

Step 3.Collect Tax

Occupancy tax must be stated and charged separately from the rent, and shown separately on any record of the transaction.

Step 4.Keep Records

You must keep detailed records of every occupancy, including the rent paid and the tax payable. You must keep these records available for inspection by the Commissioner of Finance for a period of three years. 

Step 5.File Quarterly Returns

Every quarter, you must submit a return certifying the amount of rental income and occupancy tax you collected. Registered operators will be sent the return forms to submit at the end of each quarter. Returns are due on the following schedule:

  • Dec – Feb 28/29: Return due by March 20
  • Mar 1 – May 31: Return due by June 20
  • Jun 1 – Aug 31: Return due by September 20
  • Sep 1 – Nov 30: Return due by December 20

If you rent your property on AirBnB and AirBnB collects the tax on your behalf, you are still required to file the quarterly return. AirBnB will pay the taxes directly to the County.

All other operators must file the return, and also include payment for taxes due to Ulster County as calculated on the return.

Learn more 

STRs

Step 1.Register with the County

If you operate a hotel, motel and STR located within Ulster County, you must file an application for a Certificate of Authority to collect the tax from occupants within three days of commencing business. Learn more

Step 2.Display your Certificate of Authority

Once you receive your Certificate of Authority, you must prominently display it at your lodging where it will be seen by all occupants and persons seeking occupancy.

Step 3.Collect Tax or ensure that booking services collect tax

Booking Services such as Airbnb and VRBO now collect occupancy taxes directly from your guests, and remit payment to Ulster County. However, you are responsible for collecting and remitting any tax from occupancies not facilitated by a booking service, including any privately arranged bookings.

Step 4.Keep Records

You must keep detailed records of every occupancy, including the rent paid and the tax payable. You must keep these records available for inspection by the Commissioner of Finance for a period of three years. Reports from your booking services which include the required information are sufficient.

Step 5.File Quarterly Returns

Even if you owe no tax or if booking services collected and remitted all tax, every quarter, you must submit a return certifying the amount of rental income and occupancy tax you collected. Registered operators will be sent the return forms to submit at the end of each quarter. Returns are due on the following schedule:

  • Dec – Feb 28/29: Return due by March 20
  • Mar 1 – May 31: Return due by June 20
  • Jun 1 – Aug 31: Return due by September 20
  • Sep 1 – Nov 30: Return due by December 20

If you rent your property on AirBnB and AirBnB collects the tax on your behalf, you are still required to file the quarterly return. AirBnB will pay the taxes directly to the County.

All other operators must file the return, and also include payment for taxes due to Ulster County as calculated on the return.

Learn more 

Occupants (guests) of hotels, motels, and STRs pay the tax.

 

Operators of hotels, motels, and STRs in Ulster County are responsible for collecting the occupancy tax from occupants as a separate charge from the nightly room rent.

An operator is anyone who provides lodging on an overnight basis, including traditional hotels and motels, apartment hotels, bed and breakfasts, vacation and STRs, whether or not they are a business or a private individual, or if the accommodation is in a private residence.

Operators are liable for the collection of the tax on behalf of the County and for payment of the tax to the County. The Commissioner of Finance of Ulster County is responsible for administering and collecting the tax from the operators.

Operators are required to file quarterly returns with the Commissioner of Finance including payment of any occupancy tax due on a quarterly basis.

If an operator uses a booking service such as Airbnb or VRBO to facilitate bookings of a STR, the booking service will collect and remit the taxes to Ulster County, but the operator is still required to file an occupancy tax return reporting the rental income and taxes collected.

Failure to obtain and display a certificate of authority is a misdemeanor punishable by a fine of not more than $1,000 and/or imprisonment for not more than one year.

Any payment after the 1st of the second month after the end of quarter it applies to shall be subject to a penalty of 5% per month plus interest of 1% per month.

If tax is paid late, penalties accrue at 5% per month and interest accrues at 1% per month. The date at which late payments are subject to interest and penalties for each quarter are:

  • Dec 1 – Feb 28/29: Interest and Penalties begin April 1
  • Mar 1 – May 31: Interest and Penalties begin July 1
  • Jun 1 – Aug 31: Interest and Penalties begin October 1 
  • Sep 1 – Nov 30: Interest and Penalties begin January 1

Any person occupying a room for at least 90 consecutive days shall be considered a permanent resident and shall be exempt from paying the tax.

Occupancies by governments or other non-profit organizations exempt from sales tax may also be exempt if they provide a valid NYS sales tax exemption certificate to the operators.

Failure to file an occupancy tax return is a misdemeanor punishable by a fine of not more than $1,000 and/or imprisonment for not more than one year.

Contact Us

Phone

(845) 340-4052

Email

str-tax@ulstercountyny.gov

Documents & More Info

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