Short-term rentals are set to undergo significant changes in Saratoga Springs, as the City Council prepares to launch a new licensing system next week. This initiative follows a New York State law mandating that all rental listing services provide rental information to the state, which has already begun collecting sales tax from these rentals.

City officials revealed that while sales tax is being collected, there is currently no occupancy tax due to a specific exemption for Saratoga Springs that is pending resolution at the state level. The city has sent out approximately 1,100 letters to property owners, alerting them to their obligations under the new law. Officials noted a gap of about 7-8% between observed rental activity and identified properties, indicating that some listings may not be actively rented.

The new licensing system will require hosts to register their properties, with inspections prioritized for non-primary residences. Chief Dolan emphasized the importance of these inspections to ensure safety standards are met. The city anticipates a compliance rate of around 78% within the first two months of the portal's launch, with hopes that most hosts will register before the end of the year.

As the city gears up for this rollout, officials are committed to clear communication with property owners, including FAQs and potential office hours to address questions. The licensing process is expected to streamline operations and enhance revenue collection, with the first licenses valid through May 2026. The city is optimistic about the financial implications, projecting a steady influx of revenue as the new system takes effect.