The new statute imposes a fine of $7,500 against any apartment occupant who violates the law of New York State by renting an apartment for less than 30 days. New York law makes illegal the act of renting such an apartment if—and this is an important "if"—the owner of the apartment does not remain in residence throughout the rental.
Let me repeat that: As the owner of an apartment, you can rent a room or a spare bed in that apartment to a transient visitor so long as you yourself remain in residence. But you can't rent the entire apartment to such a tourist if you yourself are not remaining in that apartment throughout the rental.
Based on that distinction, the authorities in New York claim that 75% of all Airbnb rentals in New York are currently illegal. Apparently, a full 75% of all Airbnb users will not use Airbnb unless the rental is for the entire apartment. They simply don't want to stay in an apartment whose owner can walk down the corridors of it in his/her shorts/panty and t-shirt.
And why is New York's recent action so important? It is because numerous other cities in America and around the world are waging similar battles against Airbnb, and may well be encouraged by New York's specific response or by New York's determination to drastically reduce the use of Airbnb.