Airbnb doesn’t have to cough up records relating to its New York “hosts,” even though many may be violating the law by subletting their apartments through the online home-sharing service, an upstate judge ruled Tuesday.
Acting Albany Supreme Court Justice Gerald Connolly quashed a subpoena issued by state Attorney General Eric Schneiderman on grounds that it’s “overly broad” and “seeks materials that are irrelevant to the inquiry at hand.”
In a 12-page decision, Connolly said that Schneiderman demanded Airbnb records covering the entire state, even though only hosts in New York City are suspected of evading hotel taxes of nearly 15 percent and breaking a law that bans short-term rentals when the primary resident isn’t home.
But Connolly rejected Airbnb’s claim that there was no legal basis for Schneiderman’s subpoena, saying “there is evidence that a substantial number of hosts may be in violation of the Multiple Dwelling Law and/or New York State and/or New York City tax provisions.”
“The record before the court indicates that there are hosts regularly using their apartments to provide lodging to guests who may not be complying with the state and local tax registration and/or collection requirements,” he wrote.
In a statement, San Francisco-based Airbnb called the ruling “good news for New Yorkers who simply want to share their home and the city they love.”
“Now, it’s time for us to work together. Airbnb hosts and the attorney general share a common goal: we all want to make New York a better place to live, work and visit,” the company added.
“We look forward to continuing to work with the Attorney General’s Office to make New York stronger for everyone.
A Schneiderman spokesman said the subpoena would be re-written and re-issued this week to deal with the “narrow technical issue” that Connolly cited.
“The judge’s decision specifically found evidence that a ‘substantial’ number of Airbnb hosts may be violating the tax laws and the law that prohibits illegal hotels,” spokesman Matt Mittenthal said. “This comes as no surprise, given that Airbnb itself removed some 2,000 New York-based listings from its site.”
“Our office is committed to enforcing a law that provides vital protections for building residents and tourists alike,” he added.