Stays under 180 days are subject to 8.875% New York State & City sales plus 5.875% (total 14.75%) and $2/night/room occupancy tax plus $1.5/night.
Permanent Residents: New York State and New York City have separate rules regarding the permanent resident exclusion:
1) New York State – if an occupant stays for at least 90 consecutive days they are considered a permanent resident. They are not required to pay the 8.875% and $1.50 per night fee for those days.
2) New York City – if an occupant says for at least 180 consecutive days they are considered a permanent resident. They are not required to pay the 5.875% and $2.00 per room/night fee.
In both circumstances we are required to collect state and local sales taxes on the rent charged regardless if the room is rented under a contract noting the 90 or 180 day stay. Once the occupant becomes a permanent resident of a room (90 days for NYS and 180 days for NYC), no further sales tax is payable with respect to the room provided that the occupant’s days are not interrupted. Once the 90 days has passed NYS sales tax is refundable to the occupant. In NYC, upon completion of 180 consecutive days of occupancy, NYC sales tax paid is also refundable to the occupant.