A08776 authorizes the Town of Cheektowaga, in Erie County, to adopt local laws imposing a hotel/occupancy tax on persons renting rooms in hotels, motels, boarding houses, apartment hotels, inns, clubs, tourist homes, and similar accommodations. The tax may be up to 3% of the per diem rental rate and may be collected and administered by the town’s chief fiscal officer. The bill also sets out standard administrative rules for collection, returns, refunds, review of determinations, and limitations periods, and it excludes certain occupants and entities from the tax, including the State, the federal government where immune, certain nonprofit organizations, and permanent residents staying at least 30 consecutive days.
The bill directs that all revenue from the tax be deposited into Cheektowaga’s general fund and used for any lawful purpose. It also limits each local enactment of the tax to no more than two years, while allowing the town to reenact the tax after expiration. The authorization is temporary at the state level as well, with the act taking effect immediately and expiring on December 31, 2027.
In practical terms, the bill would amend the New York Tax Law to give Cheektowaga a specific, local option to raise revenue from short-term lodging activity. It would affect hotel and motel operators, other lodging providers, and visitors staying in taxable accommodations, while leaving exempt entities and long-term residents outside the tax base. Because the bill is enabling legislation, the actual tax would only be imposed if the town later adopts a local law under the authority granted by the state.
The available voting history suggests generally favorable sentiment. The Assembly Ways and Means Committee advanced the bill on a 29-3 vote, and the Assembly Rules Committee then reported it favorably on a 28-0 vote. No committee transcript is available, so there is no recorded floor or committee debate to indicate broader public arguments, but the strong committee support suggests the measure was viewed as a routine local authorization bill.
The main point of contention, based on the bill’s structure, is the policy choice to allow a new local tax on lodging, which could be seen as a burden on travelers and the hospitality industry even though the proceeds would support the town’s general fund. The bill also contains technical issues that may matter to affected businesses, such as collection responsibility, refund procedures, and the two-year sunset, but no explicit opposition arguments are provided in the available record.
The bill would amend the Tax Law by adding a new section authorizing Cheektowaga to impose a local occupancy tax of up to 3% on room rentals in hotels and similar lodging establishments. It would create a town-specific taxing authority, establish exemptions, set administrative and judicial review procedures, and require revenues to be deposited in the town’s general fund for any lawful purpose. The authorization is temporary and expires December 31, 2027, unless renewed through future legislation or local action.
The recorded sentiment is generally favorable. The bill passed the Assembly Ways and Means Committee 29-3 and the Assembly Rules Committee 28-0, indicating broad support with limited opposition at the committee level. No committee transcripts are available, so the record does not show detailed debate, but the vote margins suggest the measure was treated as a standard local revenue authorization rather than a controversial statewide policy change.
The likely area of contention is whether Cheektowaga should be allowed to add another lodging tax, since such taxes can increase costs for hotel guests and potentially affect local tourism and hospitality businesses. Another possible concern is the scope of the tax administration provisions, including who must collect and remit the tax and how disputes are reviewed. However, the available record does not identify specific opponents or detailed objections, and the committee votes suggest any disagreement was limited.