A07341 authorizes the city of Mount Vernon, in Westchester County, to adopt local laws imposing a hotel and motel occupancy tax of up to 5.875% of the per diem room rate. The bill defines “hotel” and “motel” broadly to include traditional lodging as well as tourist homes, bed-and-breakfasts, short-term rentals, vacation rentals, Airbnbs, clubs, and other transient lodging accommodations. The tax would not apply to permanent residents, defined as guests staying at least 30 consecutive days.
The measure also sets out the administrative framework for collecting, paying, reviewing, and refunding the tax. It allows the city’s chief fiscal officer to administer the tax, permits local laws to require monthly or other periodic returns, and provides procedures for judicial review of tax determinations and refunds under Article 78. Revenues collected under the local law would be deposited into Mount Vernon’s general fund, used first to offset administration costs, and then allocated as the city council determines. The authorization is temporary: each local enactment may last no more than two years, and the state law itself expires on December 31, 2028.
The bill’s impact on state law is narrow but important: it amends the Tax Law to create a special, city-specific authorization for Mount Vernon to levy a local lodging tax that otherwise would not be available without state permission. It also extends the tax base to modern short-term rental platforms and similar transient accommodations, which could affect hotels, motels, landlords, hosts, booking intermediaries, and visitors staying in the city. Exemptions are preserved for certain governmental and nonprofit entities consistent with existing tax-law rules.
Overall sentiment appears favorable. The bill advanced through Ways and Means, Rules, and both chambers with clear majorities, including unanimous approval in the Assembly Rules Committee and strong final passage votes in both the Assembly and Senate. The voting pattern suggests broad support for giving Mount Vernon an additional local revenue tool.
The main point of contention is likely the imposition of a new occupancy tax on lodging users and the inclusion of short-term rentals such as Airbnbs within the taxable category. While the bill does not include recorded committee debate, the structure of the measure suggests a balance between local revenue needs and taxpayer concerns, reflected in the capped rate, permanent-resident exemption, and sunset provisions.
This bill amends the New York Tax Law to authorize Mount Vernon to enact a local hotel and motel occupancy tax, creating a city-specific exception to the general state tax framework. It affects lodging operators, short-term rental hosts and platforms, and transient guests in Mount Vernon, while excluding permanent residents and preserving existing exemptions for certain governmental and nonprofit entities. The authorization is temporary and expires on December 31, 2028.
The bill appears to have received generally favorable treatment in the Legislature. It passed committee and floor votes by comfortable margins, with unanimous support in Assembly Rules and strong bipartisan approval in both chambers. The vote history suggests broad acceptance of the measure as a local revenue option for Mount Vernon.
The likely areas of contention are the creation of a new local tax and the breadth of the lodging definition, which explicitly reaches short-term rentals, vacation rentals, and Airbnbs in addition to traditional hotels and motels. Critics could view the tax as increasing costs for visitors and hosts, while supporters likely see it as a limited, time-bound revenue source for the city. The bill’s cap, exemptions, and sunset date appear designed to address those concerns.