Authorizes occupancy taxes in the city of Utica and the city of Rome not to exceed 3%.
A08490 authorizes the cities of Utica and Rome, both in Oneida County, to adopt local laws imposing an occupancy tax on hotel and similar lodging stays. The tax may apply to rooms in hotels, motels, apartment hotels, bed-and-breakfasts, and similar tourist accommodations, and may not exceed 3% of the per diem rental rate. The bill sets out administration, collection, refund, review, and assessment procedures for the tax, largely mirroring standard local occupancy tax authority in New York law.
The bill also specifies important exemptions and limitations. It does not apply to the state, the federal government, certain charitable, religious, and educational organizations, or permanent residents who stay in a hotel or motel for at least 90 consecutive days. Revenue collected under the local laws must be deposited into each city’s general fund and may be used for municipal services, infrastructure, and other essential expenditures as determined by the local common council. Each local law enacted under this authority may last no longer than two years, and the authorization itself expires on December 31, 2027 unless renewed by future legislation.
The bill amends the Tax Law by adding new sections authorizing Utica and Rome to impose local hotel occupancy taxes, creating a temporary, city-specific grant of taxing authority. It affects lodging operators, hotel and motel guests, and city fiscal officers by establishing the legal framework for collection and enforcement, while also preserving existing exemptions for government entities, qualifying nonprofits, and long-term residents. Because the authorization is time-limited and sunsets in 2027, it creates a temporary revenue tool rather than a permanent change to state tax policy.
The available voting history suggests the bill was generally supported and advanced with clear majorities in both chambers. It passed the Assembly Ways and Means Committee, the Assembly Rules Committee, the Assembly floor, and the Senate floor, indicating broad institutional approval. The lack of committee transcript material limits insight into detailed debate, but the vote margins show the measure was not highly controversial overall.
The main policy issue is whether Utica and Rome should be granted authority to add a local tax on overnight lodging, which can raise costs for visitors and potentially affect tourism and hospitality businesses. Any concern would likely center on the burden on hotels, motels, and short-term guests versus the benefit of new municipal revenue for services and infrastructure. The bill’s exemptions for permanent residents and certain nonprofit or government entities reduce the scope of the tax, but the temporary nature of the authority and the 3% cap suggest an effort to balance local revenue needs with limits on taxpayer impact.