Overview: Are Short-Term Rentals Allowed in Grahamsville, NY?

Yes, short-term rentals are allowed in Grahamsville, New York. However, Grahamsville does not have specific short-term rental regulations. The hamlet follows general Sullivan County requirements and New York State housing and zoning laws. As of 2025, the regulatory environment combines county-level room tax requirements with new state-level legislation that provides a framework for STR operations and tax collection.

How to Start a Short-Term Rental Business in Grahamsville

1. County Registration and Tax Compliance

Every operator who collects occupancy tax must register with the Sullivan County Treasurer's Office by filing an application for a Certificate of Authority.

Key Steps:

• Obtain Certificate of Authority to collect the 5% occupancy tax
• Display certificate prominently where guests can see it
• File quarterly room tax returns regardless of activity
• Maintain records for minimum of two years

2. State Compliance (Effective 2025)

New York State's STR legislation (S.885C/A.4130C, amended by S.820/A.5686) establishes:

• Platform tax collection requirements (4% state sales tax + local taxes)
• County registry authorization (local discretion)
• Tax remittance through state Department of Tax and Finance

3. General Requirements

• Ensure property meets health and safety standards
• Comply with general housing and zoning laws
• Check homeowners association rules if applicable
• Maintain appropriate insurance coverage

Required Documents, Permits, Licenses, and Guidelines

Sullivan County Requirements

1. Application for Certificate of Authority to Collect Room Tax

   • Required for all lodging facilities collecting occupancy tax
   • Must be prominently displayed to all occupants
   • Non-transferable and must be surrendered upon business cessation

2. Quarterly Room Tax Returns

   • Must be filed every quarter whether or not tax is due
   • Due dates: March 20, June 20, September 20, December 20
   • Late penalty: 5% per month or portion thereof

3. Supporting Documents

   • Bi-annual recertification form (2025-2026 form available)
   • Records of all occupancies and rent paid/charged/due (minimum 2 years)

State Requirements

• Compliance with new NY STR legislation (S.885C/A.4130C)
• Platform registration may be required for hosting platforms
• Tax collection and remittance through authorized channels

Specific Regulations for Grahamsville, Sullivan County, and New York State

Grahamsville (Town of Olive)

Current Status: No specific STR regulations

• Must comply with general housing and zoning laws
• Health and safety standards apply
• County-level room tax requirements apply (5% occupancy tax)
• Property must meet residential standards

Sullivan County

Room Tax Requirements:

• Tax Rate: 5% on all lodging facility occupancies
• Application: Certificate of Authority required
• Filing Frequency: Quarterly returns mandatory
• Penalties: 5% monthly late fee
• Record Keeping: Minimum 2-year retention
• Exemptions: Permanent residents and exempt organizations

Key County Contact:

• Sullivan County Treasurer – Room Tax Division
• Address: 100 North Street, PO Box 5012, Monticello, NY 12701

New York State

New STR Legislation (Effective 2025):

• Platform Tax Collection: 4% state sales tax + local taxes collected by platforms
• County Authorization: Counties may establish local registries
• Implementation Timeline: Varies by county's existing authority and local law amendments
• Tax Distribution: State remits local taxes to counties through normal sales tax distribution

Platform Obligations:

• Collect and remit state sales tax (4%) + local taxes
• Begin collection March 1, 2025 (for counties with existing authority)
• May require registry participation depending on county decisions

Contact Information for Local Authority

Primary Contact: Sullivan County Treasurer

Phone: (845) 794-3000 Address:

• 100 North Street, PO Box 5012
• Monticello, NY 12701

Room Tax Division Contact:

• Submit Room Tax Returns and remittances to the Sullivan County Treasurer – Room Tax Division
• Same address as above

State-Level Support

New York State Association of Counties (NYSAC)

• Phone: (518) 465-1473
• Fax: (518) 465-0506
• Email: STR@nysac.org
• Address: 515 Broadway, Suite 402, Albany, NY 12207

Important Source Links

Sullivan County Resources

• Sullivan County Room Tax Information
• Sullivan County Room Tax Law
• Application for Certificate of Authority
• Room Tax Return Form
• 2025-2026 Bi-Annual Recertification Form
• NYS Law Regulating Short-Term Rentals (S820)

State Resources

• NYSAC Short-Term Rentals Information
• NYS Senate Bill S.885C
• Chapter Amendment S.820/A.5686
• STR Implementation FAQ

Additional Regulatory Context

• Country House Realty STR Regulation Analysis
• Grahamsville Vacation Rental Market Overview

Investment Considerations for Grahamsville STRs

Advantages:

• No specific STR bans or restrictive local laws
• Rural location with natural attractions (Catskills, reservoirs)
• Access to New York City market (2-hour drive)
• No permit caps like neighboring towns

Compliance Priorities:

1. Register with Sullivan County Treasurer for room tax collection
2. Ensure proper occupancy tax collection (5%)
3. Maintain compliance with state STR legislation
4. Verify HOA restrictions if applicable
5. Meet health and safety standards for residential properties

Operational Notes:

• Peak season runs fall foliage (September-November) and summer months
• Winter demand is lower due to harsh weather conditions
• Property maintenance crucial in mountain climate
• Detailed guest communication essential in rural location

This regulatory framework provides a relatively favorable environment for STR investment in Grahamsville compared to neighboring municipalities with stricter controls. The primary compliance focus is on tax collection and basic property standards rather than permit limitations or occupancy caps.