1) Overview: Are Short-Term Rentals Allowed in Phoenicia?

Short-term rentals are allowed in Phoenicia, provided you obtain and maintain a license from the Town of Shandaken and complete county/state registration. Phoenicia is a hamlet within the Town of Shandaken in Ulster County, New York. STRs are defined as rentals of fewer than 30 days. The Town of Shandaken administers licensing, inspection, and local rules; Ulster County governs occupancy tax registration and collections; New York State governs sales tax.

Important licensing realities for investors:

• Owner/Non-Resident licenses are capped. As of the latest town notice, the cap is reached and no new Owner/Non-Resident licenses are being issued. This means new non-resident investors cannot obtain a license at this time unless and until the cap is reopened or adjusted.
• Owner/Primary (owner lives on-site and is present during rentals) and Owner/Secondary (owner lives elsewhere in Shandaken and is present during rentals) licenses remain available.

Practically, this creates a two-tiered market:

• Primary and secondary residents can obtain licenses (and should confirm current availability and application procedures with the Town).
• New non-resident investors cannot enter until the cap is lifted or allocations increase.

State-level overlay: New York State requires registration and collection/remittance of sales tax and, for many counties, an occupancy tax. Ulster County’s occupancy tax applies to STRs. Hosts must also comply with New York’s tenant-safety and local fire/building codes.

Bottom line for investors:

• If you do not already live in Shandaken, expect a significant barrier to entry due to the non-resident cap.
• If you are an existing local resident or plan to relocate and meet residency/presence requirements, licensing is possible.

2) How to Start a Short-Term Rental Business in Phoenicia

Given the licensing constraints, your first step is to determine eligibility.

• For new non-resident investors: Confirm with the Town of Shandaken whether the non-resident cap has reopened. If not, hold or pivot to markets without caps.
• For owners relocating to Shandaken: Verify whether you can meet the “Owner/Primary” or “Owner/Secondary” criteria and be present during rentals.

If eligible, follow this roadmap:

1. Pre-acquisition and property fit

• Confirm zoning allows STRs in the property’s zone; STRs must be in existing single-family or two-family dwellings.
• Check access, utilities, and seasonal road conditions for year-round operations.
• Engage the Building/Zoning Department early to discuss any code considerations.

2. License application

• Submit the Town of Shandaken STR application for the appropriate category (Owner/Primary or Owner/Secondary).
• Provide the required documents listed below and schedule the required inspection.

3. Ulster County registration

• Complete the Ulster County Hotel and Motel Room Occupancy Tax registration and obtain a Certificate of Authority for tax collection and remittance.

4. State tax setup

• Register with the New York State Department of Taxation and Finance for sales and any other applicable taxes.

5. Insurance and safety

• Secure insurance with STR-specific coverage (landlord, homesharing, STR, or business liability). Platform-only insurance is not accepted.
• Install and verify smoke alarms, carbon monoxide detectors, fire extinguishers, clear exit markings, visible address numbers, and ensure emergency calling capability.

6. Neighbor notification and mapping

• The Town will notify adjacent/abutting property owners by certified mail. Expect a 30‑day input period before license issuance. The Town bills for each mailing.
• Provide a simple hand-drawn property map showing boundaries and landmarks (for guest guidance and trespass avoidance).

7. Operations setup

• Establish cleaning protocols, maintenance schedules, local vendor relationships, guest communications, and a rapid-response plan to meet the 30-minute phone/1‑hour in-person response requirement.

8. Ongoing compliance

• Renew licenses annually, pass any required inspections, collect and remit taxes on schedule, and maintain required documentation on-site.

3) Required Documents, Permits, Licenses, and Guidelines

Core documents and proof required to operate:

• Town of Shandaken STR License (must be current and posted).
• Ulster County Hotel/Motel Room Occupancy Tax Registration (Certificate of Authority).
• Proof of insurance that includes landlord/STR/homesharing/business liability coverage. Platform insurance alone is not accepted.
• Proof of at least one year of property ownership for homes purchased after June 9, 2022.
• Local contact designation with ability to respond within 30 minutes by phone and in person within one hour.
• Property map (hand-drawn acceptable) showing boundaries and landmarks to avoid trespassing.
• Floor plan (to scale) identifying rooms and dimensions with exits and windows marked.
• Emergency contact information posted in a conspicuous location, including 911 address and owner/manager contact details.
• Fire and life-safety compliance documentation (installation and maintenance records for required devices).
• “Good Neighbor” informational handout prepared by the Town for distribution to guests.
• Wildlife-resistant garbage storage or secure indoor storage; guests cannot be instructed to take trash with them.
• Evidence of Ulster County registration form submission per county instructions.

License notes:

• Licenses are not transferable between properties or owners.
• Neighbors will be notified by certified mail; you will be billed for each mailing by the Town.
• Licenses must be renewed annually, and properties must pass inspections for safety and code compliance.

4) Specific Regulations for Short-Term Rentals: City/Town, County, and State

Town of Shandaken (Phoenicia) rules:

• STRs under 30 days require a STR license.
• License categories and availability:
  • Owner/Primary: Property is owner’s primary residence; owner present during rentals.
  • Owner/Secondary: Owner lives elsewhere in Shandaken; owner present during rentals.
  • Owner/Non-Resident: Not living in Shandaken. This category is capped; the cap is currently met and no new licenses are being issued.
• Owner/manager must respond within 30 minutes by phone and be available in person within one hour to address emergencies.
• Property must be inspected and comply with the Fire Prevention and Building Safety Code.
• Provide the ability for guests to make emergency telephone calls.
• Address number must be visible from the road for guests and emergency services.
• Map of property boundaries/landmarks to be provided to guests.
• Garbage must be stored in wildlife-resistant containers or secured in a sturdy shed/garage at all times.
• Children under 16 are not counted toward occupancy; occupancy limits are based on two guests per bedroom (children under 16 excluded).
• Licenses are non-transferable and not issued for properties owned less than one year (for homes purchased after June 9, 2022).
• Adjacent/abutting property owners receive certified mail notice with a 30‑day input period before license issuance.
• Annual license renewal is required.

County-level (Ulster County):

• All STRs must register for Ulster County’s Hotel and Motel Room Occupancy Tax and obtain a Certificate of Authority. The current rate is 4% of gross rental receipts.
• Hosts must collect and remit the county occupancy tax in accordance with county instructions (generally quarterly filings).

State-level (New York State):

• New York State Sales Tax applies to short-term rentals. The state sales tax rate is 4%. Ulster County also imposes a local sales tax (3%). While platforms may collect some taxes, hosts remain responsible for ensuring all applicable taxes are collected and remitted.
• Compliance with the New York State Fire Prevention and Building Safety Code is required; the Town’s inspection verifies this.

Tax reminders:

• Ulster County occupancy tax filings are typically quarterly and due by the 20th of the month following the end of each quarter.
• Late filings can trigger penalties and interest.
• Maintain detailed records of gross receipts and taxes collected/remitted.

5) Contact Information for Local Authority in Charge of STRs

Town of Shandaken (licensing, inspections, local rules):

• Phone: (845) 688-5004
• Email: shandakenclerk@yahoo.com
• Website: www.shandaken.us
• Address: 7209 Route 28, Shandaken, NY 12480

Ulster County Finance Department (occupancy tax registration and remittance):

• Phone: (845) 340-3431
• Email: str-tax@co.ulster.ny.us
• Website: ulstercountyny.gov/finance/hotel-motel-room-occupancy-tax

New York State Department of Taxation and Finance (sales tax registration and general tax guidance):

• Phone: (518) 485-2889
• Website: www.tax.ny.gov

For applications and payments:

• STR license applications and renewals: shandakenpayments.com
• Online tax payment (town/tax): shandakentax.com

6) Links to Source Pages

• Town of Shandaken Short-Term Rental Licensing page: www.shandaken.gov/short-term-rental-licensing/
• Shandaken STR Law (PDF): www.shandaken.us/wp-content/uploads/2025/02/NEWstr-law-update-3.2024.pdf
• STR Application Form (Owner/Primary and Owner/Secondary): www.shandaken.us/wp-content/uploads/2025/02/STR-App.pdf
• Ulster County Hotel and Motel Room Occupancy Tax page: ulstercountyny.gov/finance/hotel-motel-room-occupancy-tax
• Ulster County STR Registration Form (PDF): ulstercountyny.gov/sites/default/files/documents/Registration%20Form%20New.pdf
• Town of Shandaken Contact Information: www.shandaken.gov/contact-information/
• Online Permit Payments (Town of Shandaken): www.shandakenpayments.com/
• Online Tax Payment (Town of Shandaken): www.shandakentax.com/
• Background article summarizing Phoenicia STR rules (market context and investor overview): local.theoffersheet.com/legal/phoenicia-ny/

Notes:

• Regulatory details are subject to change. Always verify the latest requirements with the Town and County before making investment decisions.
• This guide is informational and not legal or tax advice. Consult the Town of Shandaken, Ulster County Finance, and a qualified tax professional for specific situations.