Regulation & Licensing · 2026
What the Law Requires in Ellicottville
Start with the state, which taxes a short stay the way it taxes a hotel room. Under New York's short-term rental law, which became law on December 24, 2024, and the chapter amendment signed on February 28, 2025, state and local sales tax applies from March 1, 2025, to the rent for a short-term rental unit, which the Tax Department describes as all or part of a building used to lodge guests, from a house, apartment, condo or cabin to a single room, whenever the rent is more than $2 a unit per day. The combined rate in Cattaraugus County, which takes in Ellicottville and Great Valley, is 8 percent. A booking service that arranges a stay must register with the Tax Department and collect the tax, and an owner whose every booking runs through such a service doesn't have to register, provided the service has issued Form ST-155, its Booking Service Certificate of Collection, or publishes an agreement saying it collects. Take even some bookings directly and you need your own sales tax registration, with returns due on the schedule you're assigned, quarterly, monthly or annually, even for periods with no sales. Airbnb collects state and local sales tax on New York reservations of 89 nights or fewer outside New York City, cleaning fee included. The same legislation set up county short-term rental registries: according to the New York State Association of Counties, the registry provisions took effect around September 25, 2025, every county outside New York City must keep a registry unless it opted out by local law by about June 25, 2026, registry counties receive quarterly booking reports from the platforms, and a platform faces fines of $500 a day per violation once a county's registry exists. Cattaraugus County's occupancy-tax page doesn't mention a registry, so ask the county before you list whether it runs one.
Cattaraugus County adds its own occupancy tax of 5 percent under the Cattaraugus County Occupancy Tax Law, Local Law 21 of 2003, on any facility that lodges guests overnight, and the treasurer's list of facilities includes cabins, condominiums, cottages and tourist homes. Operators register with the treasurer at least 20 days before they open, receive a Certificate of Authority to display at the property and file a return every quarter whether or not any tax was collected: by March 20 for December through February, June 20 for March through May, September 20 for June through August and December 20 for September through November, with a separate registration for each location. Airbnb lists the county's 5 percent hotel and motel tax among the taxes it collects, on reservations of 59 nights or fewer, and the treasurer says most Airbnb properties in the county have it remitted for them every quarter, while owners listing on Vrbo or other sites will most likely need to remit it themselves.
The Town and the Village each license rentals under their own zoning law, so first confirm which one covers your address. In the Town of Ellicottville, the rules come from Local Law No. 1 of 2025, a zoning amendment the Town Board adopted on February 19, 2025, set to take effect on March 1, 2025, or once filed with the Secretary of State if that came later, and which gave existing rentals 90 days to comply. A short-term rental is any stay under 30 consecutive days, and it's allowed in all of the Town's zoning districts but one, only with a short-term rental license. A license runs for a year and expires on February 28 no matter when it was issued, renewals are due within the 60 days before that, and the Building Official inspects before a license is issued and may inspect again before a renewal. The law separates a principal dwelling, where someone lives at least 184 days a year, from a secondary dwelling, a second home or an investment house. There's no limit on licenses for principal dwellings, but the yearly number of licenses for secondary dwellings is based on the count issued in the law's first year, and no owner may hold more than one secondary-dwelling license unless the others were issued in that first year and renewed every year since. The Town's April 2025 application lists a non-refundable fee of $200 for a principal dwelling, with two proofs of residency, and $700 for a secondary dwelling. A license belongs to the owner and the site: it expires automatically on a sale or transfer of the property, a new owner applies with a new fee, and no license is issued or renewed while code cases, fines or Town liens are outstanding.
The Town's license also fixes the guest count by formula: two guests per bedroom that meets the state fire and building code, plus two for the house, so a five-bedroom home is licensed for at most twelve overnight guests, and between 6 a.m. and 10 p.m. no more than twice that number may be on the property. An efficiency unit gets one guest per 120 square feet, up to three. The inspection looks for working smoke alarms in every bedroom, outside each sleeping area and on every story, including the basement; a fire extinguisher in the kitchen and at each main exit; carbon monoxide detection within 10 feet of the entrance to sleeping areas and in any room with a fuel-burning appliance; vented fireplaces, inserts and heaters; clear exits; sound wiring; and an exterior door or an egress window in every bedroom. While the house is rented, an owner or contact person must answer around the clock and get to the property within an hour of a complaint, and the neighbors next door must have that person's number and yours. The license number has to appear prominently in every listing and advertisement, any listing that shows up in a platform search for stays under 30 days counts as short-term rental advertising, and you can't advertise more guests than the license allows. The law also allows one booking per property per day, requires every car to park on the property rather than on the lawn or the street, asks for covered trash with weekly pickup, bars campers, RVs and tents as extra sleeping space, and bans weddings, banquets and corporate events: the house is for overnight lodging only. Inside, post the license number, the owner's and contact person's details, the guest limit, the trash, noise and parking rules and local emergency information, and use a rental agreement that lets you cancel at least a full week before arrival if the license is suspended or revoked. Operating or advertising without a license carries a fine of $1,000 to $2,000; other violations carry up to $1,000, then $1,000 to $2,000 and $2,000 to $4,000 for repeats within five years, each day counts as a separate violation, unpaid fines can be added to the property's Town taxes, and an owner whose license is revoked waits a year to apply again.
The Village of Ellicottville runs its own short-term rental license. Under its current application, short-term rentals are allowed only in the districts its land use tables permit, in Section 3B of the Village Zoning Law, Local Law 1 of 2019; the license runs from January 1 to December 31 and must be renewed every year; it isn't transferable and lapses with any sale or transfer of the property; and the license number must be posted on every platform and inside the rental. Every car parks on site, never on the street or the lawn, the number of vehicles can't exceed the permitted occupancy, and vehicles that seat 12 or more, RVs and trailers aren't allowed. Trash follows the village's rules and schedule, noise follows the Village Noise Ordinance, Local Law 6 of 2006, and a local contact within 25 miles must be reachable at all times. The fee is $400 for a studio to two bedrooms, $750 for three or four and $1,000 for five or more, with a notarized affidavit; Airbnb's help page for the village still shows older fees of $75 to $200, so go by the village's own form.
The Town of Great Valley posts a short-term rental law and a license application on its planning and zoning page. Under that text, rentals are allowed in every zoning district and on every day of the year, with an annual license from the code enforcement officer after an on-site inspection, a local contact who lives or keeps a business within 60 minutes and is available at all times, a certificate of insurance for short-term or vacation rental use, confirmation that you're set up for the county hotel tax and state sales tax, the license number and maximum occupancy on every listing and posted within ten feet of the main entrance, on-site parking, no vehicles that seat 12 or more and no RVs or trailers. Occupancy is set at the inspection, and fees run from $100 for a studio or one bedroom to $400 for four bedrooms or more. The posted copy is still headed 'Proposed Local Law No. 1-2022', so confirm the adopted text and current fees with the town. Condominium and homeowners associations around the ski areas can be stricter than any of these laws, and the Town of Ellicottville's application asks whether a deed or association restriction applies. Use this section for orientation, not as legal advice: check the current rules with the Town, the Village, Great Valley, Cattaraugus County and the state, and read your association's documents, before you list. Cavmir handles the marketing side, while licensing, inspections and tax returns remain the owner's job, ideally with a local attorney and accountant.