Airbnb filed two lawsuits against New York City on Thursday, blasting a local law requiring hosts to register their rentals with the city.
The lawsuit from Airbnb pleads with the New York Supreme Court to rule against the “invalid and unenforceable” regulation “because they are arbitrary and capricious and violate federal and New York law.”
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In an emailed statement from Airbnb, the hospitality giant claimed the regulations are “punitive and burdensome,” adding the lawsuit comes “after exhausting all available paths for a sensible solution” with New York City.
Local Law 18 was passed in January 2022 and went into effect in January 2023, requiring booking companies such as Airbnb, Vrbo, Booking.com, and more that host renters for less than 30 consecutive days to register with the Mayor’s Office of Special Enforcement.
The lawsuit states more than 5,500 short-term rentals, hosting more than 10,000 guests, are set for the first week of July. There are around 42,000 Airbnb listings in the city, according to InsideAirbnb.
California is also moving forward with regulations affecting Airbnb, voting in the Senate to pass a bill imposing a 15% tax on short-term rentals.
Senate Bill 584, the Laborforce Housing Financing Act, would provide assistance to low- and middle-income housing construction.
The bill defines short-term rentals as not exceeding 30 days, and if approved, the tax would begin in 2025.
“The increase in short-term rentals used as a business requires we examine the impact they present, whether opportunities or limitations, for our housing market,” sponsor state Sen. Monique Limon said in a statement.
According to the final regulations, monetary fines and penalty violations of Local Law 18 will begin when the rule is enforced in July, with the portal to register rental spaces opening up in March.
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“By imposing onerous registration requirements that will have a chilling effect on aspiring hosts, the City will foreseeably drive Airbnb’s business counterparties out of the marketplace,” the lawsuit states.
The Washington Examiner reached out to Airbnb and the Office of Special Enforcement for comment.