Executive Overview

Short-term rentals are allowed in Newburgh, NY, subject to compliance with local and state regulations. The City of Newburgh has implemented specific tax requirements for short-term rental operations, including a 5% hotel occupancy tax and mandatory registration for a Certificate of Authority. While the city has not enacted comprehensive short-term rental licensing requirements similar to some other New York municipalities, operators must comply with state-level regulations and local tax obligations.

How to Start a Short-Term Rental Business in Newburgh

Step 1: Property Due Diligence

• Zoning Compliance: Verify your property is zoned for short-term rental use (consult local zoning maps and zoning code)
• Building Compliance: Ensure all safety features meet NY State Multiple Dwelling Law requirements
• Insurance: Obtain appropriate property and liability insurance coverage

Step 2: Business Registration Requirements

• Business Registration: Register your STR business at the local level (though forming an LLC is not mandatory)
• EIN Application: Obtain an Employer Identification Number from the IRS if operating as LLC, corporation, or partnership
• Tax Registration: Register with NY State Tax Department for sales tax collection

Step 3: City-Specific Compliance

• Certificate of Authority: Submit Application for Certificate of Authority to City of Newburgh for hotel occupancy tax collection
• Tax Collection Setup: Implement systems to collect and remit the 5% city hotel occupancy tax
• Quarterly Reporting: Establish procedures for quarterly tax returns submission

Required Documents, Permits, Licenses, and Guidelines

Newburgh-Specific Requirements:

1. Certificate of Authority Application

   • Application form available at city website
   • Required for all short-term rental operations
   • Must be obtained before collecting taxes

2. Hotel Occupancy Tax Registration

   • 5% tax rate on overnight stays
   • Quarterly returns required
   • Applies to all short-term rental types including those through online platforms

State-Level Requirements:

1. NY State Sales Tax Registration

   • 4% state sales tax on short-term rental revenue
   • Local sales tax varies by jurisdiction
   • Metropolitan Commuter Transportation District (MCTD) tax applies where applicable (3/8%)

2. Property Information Documents

   • Property address and zoning information
   • Owner ownership documentation
   • Owner residence information
   • Contact details and occupancy information

Specific Regulations for Short-Term Rentals

City of Newburgh Regulations

Hotel Occupancy Tax Requirements:

• Tax Rate: 5% on all overnight stays
• Effective Date: April 1, 2023
• Applies To: Hotels, motels, inns, BnBs, vacation rentals, short-term rentals, and properties rented through online hosting platforms
• Registration: Mandatory Certificate of Authority application
• Reporting: Quarterly tax returns to City of Newburgh

State of New York Regulations

Multiple Dwelling Law (MDL) Classification:

• Class A Multiple Dwelling: Residential buildings for permanent residence. Short-term rentals (under 30 days) are prohibited unless host resides on-site and other conditions are met
• Class B Multiple Dwelling: Hotels, lodging houses, rooming houses. Short-term rentals allowed even without host residence

General State Requirements:

• Definition: Rentals for fewer than 30 consecutive days considered short-term
• Tax Definition: For tax purposes, NY State defines short-term rentals as fewer than 90 consecutive days
• Compliance: All safety requirements apply including smoke detectors, carbon monoxide detectors, and fire extinguishers

Orange County Regulations

County-Level Requirements:

• Local sales tax rates apply in addition to state requirements
• Hotel occupancy tax may apply depending on local regulations
• Building and safety inspections may be required

Contact Information

City of Newburgh

• Address: 83 Broadway, Newburgh, NY 12550
• Phone: 845-569-7300
• Website: www.cityofnewburgh-ny.gov
• Room Occupancy Tax Information: https://www.cityofnewburgh-ny.gov/617/Room-Occupancy-Tax
• Certificate of Authority Application: Application for Certificate of Authority - Hotel Tax

Additional Resources:

• NY State Tax Department: www.tax.ny.gov
• Orange County Government: Contact county offices for local tax and zoning information

Source Pages and References

1. City of Newburgh Hotel Occupancy Tax Announcement: https://www.cityofnewburgh-ny.gov/CivicAlerts.aspx?AID=547
2. New York Short-Term Rental Laws Overview: https://www.gosummer.com/post/new-york-short-term-rental-law
3. Certificate of Authority Application Form: City of Newburgh Application for Certificate of Authority - Hotel Tax
4. City of Newburgh Room Occupancy Tax Information: https://www.cityofnewburgh-ny.gov/617/Room-Occupancy-Tax

Tax Summary for Newburgh STR Operators

Total Tax Obligations:

• City Hotel Occupancy Tax: 5%
• NY State Sales Tax: 4%
• Orange County Sales Tax: Varies by location
• MCTD Tax: 3/8% (where applicable)
• Federal Income Tax: Applicable on net rental income
• State and Local Income Tax: As applicable

Important Notes:

• Taxes must be collected from guests and remitted to appropriate authorities
• Deductions available for business expenses, depreciation, and other legitimate costs
• Quarterly filings required for city hotel occupancy tax
• Annual income tax returns required

Compliance Recommendations

1. Legal Consultation: Consider consulting with local legal experts familiar with Newburgh and Orange County regulations
2. Regular Monitoring: Stay informed about potential changes in local regulations
3. Documentation: Maintain detailed records of all income, expenses, and tax remittances
4. Professional Services: Consider working with tax professionals familiar with STR businesses
5. Insurance: Maintain comprehensive coverage including liability and property damage

This guide provides the essential framework for operating a compliant short-term rental business in Newburgh, NY. Given the evolving nature of STR regulations, operators should regularly verify current requirements with local authorities.