Rove Compliance & Tax Collection FAQ

Tax Reporting

When deciding whether to partner with Rove for booking services and/or property management, it's crucial to understand the tax implications of Short-Term Rentals (STRs) and Medium-Term Rentals (MTRs). As a booking service and property manager, Rove does not provide legal or tax advice, but we want to provide resources that may help you better understand applicable regulations.

Property owners understand and agree that the information provided on this site is for informational purposes only, and does not constitute legal or tax advice. Property owners must always consult with their tax and other professional advisors, and are in all instances responsible for their individual, property, and other tax reporting obligations and tax liabilities.

Key tax considerations for property rentals:

Accurate Record Keeping. Rove maintains detailed records of all transactions, including income and occupancy details, to assist in accurate tax reporting.
Providing Tax Documentation. Rove will provide homeowners with certain documentation to support their tax filings, including monthly revenue and expense statements, and consolidated annual statements upon request.
Staying Informed on Regulations. Rove makes its best effort to stay up-to-date on rental regulations, ensuring compliance and minimizing potential risks.
Transparency. Rove will provide clear and consistent data to property owners, so that they can accurately report their taxes.
Consult a Tax Professional. While Rove provides assistance and resources, you should always consult with a qualified tax professional to ensure you're meeting all your tax obligations.
Owner Responsibility. Ultimately, homeowners are responsible for accurately filing and paying all taxes applicable to their rental property.

Rove's Approach to Tax Reporting in New York City:

Guests who book Rove listings in New York City will pay the following taxes as part of their reservation and Rove will remit to the respective tax authorities:

State Sales Tax: 7-8.875% of the listing price including any cleaning fee and guest fees, for reservations 179 nights and shorter. For detailed information, visit the New York Department of Taxation and Finance website.

Information about state-administered taxes is available on the New York State’s Department of Taxation website. Information about New York City-administered taxes is available on the City’s website.

Rove provides an online booking service and select property management services for medium and long term rentals with a 30+ night minimum rental duration in New York City. All property rentals in New York City (unless exempt) are now subject to the new sales tax for the first 180 days of occupancy until the guest becomes a primary resident.

Rove's Approach to Tax Reporting in Suffolk County:

Guests who book Rove rentals in Suffolk County will pay the following taxes as part of their reservation and Rove will remit to the respective tax authorities:

Suffolk County Sales and Use Tax: 4.375%
Metropolitan Commuter Transportation District Tax (MCTD): 0.375%
New York State Sales and Use Tax 4.00%
Permanent Resident Tax Exemptions:
- Rentals of 1-29 days: subject to all 3 taxes (county sales, state sales, county occupancy)
- Rentals of 30-89 days: subject to sales tax only (county sales, state sales) but not occupancy tax due to permanent resident status for this tax being stays of 30+ days.
- Rentals of 90+ days: not subject to any of the taxes above due to permanent resident status exemption.

Suffolk County local sales tax is 4.375%; Suffolk County also falls within the MCTD, so an additional 0.375% tax is imposed. Therefore, the full state + local sales tax rate for Suffolk County is 8.75%. The State of New York is implementing a new property owner and booking service registry for short term rentals. The registry requires owners and booking services, such as Rove, to maintain and report certain information. The registry is still being developed, and we will provide updates as they become available.

Further reading

A. Host Obligations

Under Real Property Law § 447-b(2), 447-c(2), STR hosts must:

Register each STR unit with Suffolk County
Maintain records for 2 years following the end of the calendar year, including:
- Dates of stay
- Guest count
- Total cost
- Itemized taxes collected
- Unit registration information
- Registrations are valid for 2 years

The Owner is solely responsible for consulting with a qualified tax professional to determine any additional tax obligations that may apply beyond state and local sales taxes collected by the booking platform. Owners are encouraged to consult with a qualified tax professional to determine if any additional tax obligations apply beyond state and local sales taxes collected by the booking platform. These may include, but are not limited to, occupancy taxes, hotel taxes, property taxes, or other taxes.

B. Booking Service Obligations (Rove)

Under Real Property Law § 447-b(3), a booking service must:

Must collect and maintain data for 2 years following the end of the calendar year on every STR unit stay facilitated, including:
- Dates, guest count, cost
- Sales and occupancy tax amounts
- Host legal name and unit registration number
- Quarterly report to each applicable county (Jan 1, Apr 1, Jul 1, Oct 1)

Verification (Real Property Law § 447-c(2)(d)):

The county in which the short-term rental unit is located or the multi-county registry that includes such county shall make available to booking services the data necessary to allow booking services to verify the registration status of a short-term rental unit and that the unit is associated with the short-term rental host who registered the unit.
Rove may not facilitate bookings for unregistered STRs

Consent Requirement:

Rove should require host consent to collect and submit the data required by law.

Booking Service Registration:

Counties may create a registry for booking services, but it is not mandatory under the current law.

[1] See Short-Term Rental Registration, NYC 311, https://portal.311.nyc.gov/article/?kanumber=KA-03559.

Take note, there are significant penalties for failure to register, including but not limited to revocation of the owner’s registration, and barring the owner from registering for 12 months.

New York’s STR registry requires Rove to collect and report certain data regarding STRs in New York State. Rove will collect data related to all STR unit guest stays facilitated by Rove within the state, and will report such information to the State of New York. This information will be reported by Rove to the State and/or County, as applicable, in accordance with any reporting obligations. By listing through Rove, property owners and hosts consent to Rove collecting and producing this data to the applicable County and the State of New York. Property owners and each listed unit must also have a current registration with the applicable county once the registry becomes available, and will be required to provide registration information to Rove for reporting purposes.

For more information on the registry requirements and tax implications on short term rentals in the State of New York, see Senate Bill S820, and consult with your attorney and tax advisor if there are any questions.

Last updated April 21, 2025. The foregoing materials have been prepared and provided for general information purposes only. The information presented does not constitute and is not intended to be legal or tax advice, may not be current, and is subject to change without notice. We do not represent or warrant that such information is or will be always up-to-date, complete, or accurate. Rove will make efforts to update information as it becomes available, but you agree that we are not liable to you or others, in any way or for any damages of any kind or under any theory, arising from this site, or your access to or use of or reliance on the information in or through this site.