Overview

Alexandria Bay, NY allows short-term rentals, but with specific regulatory requirements. The village has no dedicated short-term rental ordinance, but hosts must comply with state regulations and local zoning laws. Short-term rental operations are generally treated as either "Bed and Breakfast" or "Cottage, Rental" uses under the village zoning code, both of which require special permits or site plan review depending on the zoning district.

How to Start a Short-Term Rental Business in Alexandria Bay

Step 1: Determine Zoning Compliance

Before investing, verify your property's zoning district classification. Alexandria Bay has five zoning districts:

• Residential (RES) - Single-family, duplex, and multi-family residences
• Marine Residential (MR) - Single-family residences with water access protection
• Business (B) - General retail, service, and entertainment uses
• Marine Development (MD) - Water-related resort activities
• Downtown Overlay (DO) - Special guidelines for downtown areas

Step 2: Choose Your Operation Type

Under Alexandria Bay zoning, short-term rentals typically fall into two categories:

Bed and Breakfast:

• Operated within a single-family residential structure
• Must be the principal residence of the operator
• Bedrooms rented for overnight lodging
• Food may be served to registered guests only

Rental Cottage:

• Small, detached dwelling unit
• Rented to overnight guests or longer duration on seasonal basis
• Usually located on larger tracts of land, often waterfront properties

Step 3: Obtain Required Permits

All short-term rental operations require:

• Zoning Permit from the Village
• Certificate of Occupancy (required for any new use)
• Special Use Permit (for Bed & Breakfast in Residential zones)
• Site Plan Review (for most other zoning districts)

Step 4: Tax Registration

• Register for New York State sales tax collection
• Apply for Jefferson County occupancy tax collection
• Obtain any required tax permits from the New York State Department of Taxation and Finance

Required Documents, Permits, Licenses, and Guidelines

Permits and Licenses

1. Zoning Permit - Required for any change of use
2. Special Use Permit - Required for Bed & Breakfast operations in Residential zones
3. Site Plan Review - Required for most non-residential STR operations
4. Certificate of Occupancy - Required before operation begins
5. Sales Tax Registration - Required to collect/remit NYS sales tax
6. Local Business License - Check with village clerk office

Documentation Requirements

• Completed zoning permit application
• Site plan showing property boundaries, structures, parking
• Proof of property ownership
• Floor plans showing bedroom locations
• Parking plan (minimum 2 spaces per dwelling unit)
• Operating plan detailing guest services and management
• Insurance documentation
• Sanitary system approval (septic/well compliance)

Specific Regulations by Jurisdiction

City of Alexandria Bay (Village Level)

Zoning Compliance:

• Residential (RES) Zone: Bed & Breakfast requires Special Use Permit; Rental Cottage not permitted
• Marine Residential (MR) Zone: Both Bed & Breakfast and Rental Cottage require Site Plan Review
• Business (B) Zone: Both require Site Plan Review
• Marine Development (MD) Zone: Both require Site Plan Review

Operational Requirements:

• Maximum building height: 30 feet in RES/MR zones, 50 feet in B zone, 35 feet in MD zone
• Minimum lot size: 15,000 sq ft for residential, 7,500 sq ft for business
• Off-street parking: 2 spaces per dwelling unit minimum
• Waterfront properties must comply with 125-foot minimum setback from neighboring structures
• Shoreline construction must minimize environmental impact

Prohibited Uses:

• Accessory dwellings cannot be used as short-term rentals
• No STR operations allowed in accessory buildings or structures
• Mobile homes and manufactured housing cannot be used for STR operations

Jefferson County Level

• County occupancy taxes apply to short-term rentals
• County health department may regulate septic and well systems
• Building permits required for structural modifications

New York State Level

Tax Requirements:

• 4% New York State sales tax on accommodation charges
• 3% Jefferson County occupancy tax (confirm current rate)
• Additional NYC hotel tax if applicable (not applicable to Alexandria Bay)

State Regulations:

• Must comply with NYS multiple dwelling laws if operating 3+ units
• Fair Housing Act compliance required
• Building safety codes and fire safety regulations apply
• Workers' compensation required if employees are hired

Contact Information

Primary Local Authority

Village of Alexandria Bay

• Phone: (315) 482-9511
• Address: 520 Butternut Street, Alexandria Bay, NY 13607
• Website: villageofalexandriabay.com
• Zoning Enforcement Officer: Contact village office for current officer information

Jefferson County Contacts

Jefferson County Planning Department

• Phone: (315) 785-3133
• Website: co.jefferson.ny.us

Jefferson County Health Department

• Phone: (315) 786-3720
• For septic/well system approvals

New York State Contacts

NYS Department of Taxation and Finance

• Sales Tax Info: (518) 485-2889
• Website: tax.ny.gov

NYS Liquor Authority (if serving alcohol)

• Phone: (518) 473-6600

Source Pages

1. Checkmate Rentals - Alexandria Bay Airbnb Management

   • Primary source for market overview and state-level tax requirements

2. Village of Alexandria Bay Zoning Law (PDF)

   • Complete zoning regulations, use classifications, dimensional requirements, and permitting procedures

Important Investment Considerations

Seasonal Demand: Alexandria Bay experiences significant seasonal variation in demand, with peak occupancy during summer months (June-August). Winter occupancy rates drop substantially due to cold weather and reduced tourism.

Property Types: Waterfront properties and those near attractions like Boldt Castle command premium rates. The village's proximity to the St. Lawrence River and Thousand Islands creates strong seasonal demand.

Regulatory Monitoring: While no specific STR ordinance currently exists, the village has recently updated zoning regulations (December 2023). Monitor for future amendments that may specifically address short-term rental operations.

Market Competition: Competition exists from established property management companies and traditional accommodation providers (hotels, motels). Success depends on property quality, location, and professional management.

Infrastructure Requirements: Properties must meet public health requirements for water/septic systems. Additional parking requirements may limit viable locations in the downtown core.

This guide represents current regulations as of the provided sources. Investors should verify current requirements with local authorities before making investment decisions.