Colonie, NY Home Business: Zoning Restrictions (2026)

New York law treats home occupations as a zoning matter under Town Law Article 16. Section 261 authorizes Colonie to regulate the use of buildings and to designate uses permitted by right, by special-use permit, or by site plan in each zoning district. Chapter 190 typically permits a customary home occupation as an accessory use in residential districts subject to standards including: a percentage of floor area cap (commonly 25 to 30 percent of the dwelling) devoted to the business, no alteration of the residential character of the exterior, no non-resident employees or only one non-resident employee, limited customer traffic, no outdoor storage of materials or equipment, no noise audible at the property line beyond ordinary residential levels, and signage limited to a small non-illuminated identification sign. Major home occupations (e.g., medical practices, instructional studios with multiple students, contractor offices with employees and equipment storage) typically require a special-use permit from the Planning Board (or Town Board) under NY Town Law §274-b with a noticed public hearing. The reviewing board applies compatibility standards and may attach conditions including limits on hours, customer count, off-street parking, and screening. Home occupations must also comply with any Town business registration obligations and any state professional licensing administered by the NY State Education Department (for licensed professions) or NY Department of State.