NY poised to crack down on illegal Airbnb rentals

New York state may soon enact one of the nation's toughest restrictions on Airbnb, the popular online short-term rental service.

Legislation awaiting action by Democratic Gov. Andrew Cuomo before the end of the month would authorize fines of up to $7,500 for tenants and landlords who advertise rentals that violate a 2010 state occupancy law.

Supporters of the measure say many Airbnb rentals are already prohibited under that law. They say fines will help bring an end to illegal, unlicensed rentals that hurt local hotels and reduce the number of affordable apartments in New York City.

Cuomo hasn't said what he intends to do, and Airbnb is pushing hard for a veto. The San Francisco-based company has proposed regulations intended to prevent property owners from running unlicensed hotels.