NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6556
SPONSOR: Jacobson TITLE OF BILL:
An act to amend the tax law, in relation to authorizing the city of
Beacon to impose a hotel and motel tax; and providing for the repeal of
such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
This legislation authorizes the city of Beacon in Dutchess County to
impose by local law, a tax on hotel and motel occupancy of up to five
percent of the charge.
SUMMARY OF PROVISIONS:
Section 1 amends the Tax Law by adding a new section 1202-hh which
authorizes the imposition of a hotel and motel occupancy tax in the City
of Beacon. The rate of the tax shall not exceed 5% of the per diem
(daily) rental rate for each room. The tax shall also apply to "bed and
breakfast" and "tourist" facilities.
Section 2 sets forth the effective date which shall be immediately and
shall expire and be deemed repealed 3 years after such date.
JUSTIFICATION:
This legislation would allow the City of Beacon to impose a hotel and
motel tax. The rate of such tax shall not exceed 5% of the daily rental
rate for each room. The tax shall also apply to "bed and breakfast" and
"tourist" facilities such as Airbnb. Pursuant to the Municipal Home Rule
Law, a city may adopt local laws that relate to the levy and adminis-
tration of local taxes if authorized by the State legislature. The City
of Beacon has requested special legislation which will enable them to
collect a hotel and motel tax in an effort to raise additional revenue
for the city.
PRIOR LEGISLATIVE HISTORY:
None. New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state. The city will collect additional revenues which will
be used to reduce the burden on local taxpayers.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed 3 years after such date.
STATE OF NEW YORK
________________________________________________________________________
6556
2023-2024 Regular Sessions
IN ASSEMBLY
April 18, 2023
___________
Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to authorizing the city of
Beacon to impose a hotel and motel tax; and providing for the repeal
of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 1202-mm to
2 read as follows:
3 § 1202-mm. Hotel or motel taxes in the city of Beacon. (1) Notwith-
4 standing any other provisions of law to the contrary, the city of
5 Beacon, in the county of Dutchess, is hereby authorized and empowered to
6 adopt and amend local laws imposing in such city a tax, in addition to
7 any other tax authorized and imposed pursuant to this article such as
8 the legislature has or would have the power and authority to impose upon
9 persons occupying hotel or motel rooms in such city. For the purposes of
10 this section, the term "hotel" or "motel" shall mean and include any
11 facility consisting of rentable units and providing lodging on an over-
12 night basis and shall include those facilities designated and commonly
13 known as "bed and breakfast" and "tourist" facilities. The rates of such
14 tax shall not exceed five percent of the per diem rental rate for each
15 room, provided however, that such tax shall not be applicable to a
16 permanent resident of a hotel or motel. For the purposes of this section
17 the term "permanent resident" shall mean a person occupying any room or
18 rooms in a hotel or motel for at least ninety consecutive days.
19 (2) Such tax may be collected and administered by the chief fiscal
20 officer of the city of Beacon by such means and in such manner as other
21 taxes which are now collected and administered by such officer or as
22 otherwise may be provided by such local law.
23 (3) Such local laws may provide that any tax imposed shall be paid by
24 the person liable therefor to the owner of the hotel or motel room occu-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10675-01-3
A. 6556 2
1 pied or to the person entitled to be paid the rent or charge for the
2 hotel or motel room occupied for and on account of the city of Beacon
3 imposing the tax and that such owner or person entitled to be paid the
4 rent or charge shall be liable for the collection and payment of the
5 tax; and that such owner or person entitled to be paid the rent or
6 charge shall have the same right in respect to collecting the tax from
7 the person occupying the hotel or motel room, or in respect to nonpay-
8 ment of the tax by the person occupying the hotel or motel room, as if
9 the tax were a part of the rent or charge and payable at the same time
10 as the rent or charge; provided, however, that the chief fiscal officer
11 of the city, specified in such local law, shall be joined as a party in
12 any action or proceeding brought to collect the tax by the owner or by
13 the person entitled to be paid the rent or charge.
14 (4) Such local laws may provide for the filing of returns and the
15 payment of the tax on a monthly basis or on the basis of any longer or
16 shorter period of time.
17 (5) This section shall not authorize the imposition of such tax upon
18 any transaction, by or with any of the following in accordance with
19 section twelve hundred thirty of this article:
20 a. The state of New York, or any public corporation (including a
21 public corporation created pursuant to agreement or compact with another
22 state or the Dominion of Canada), improvement district or other poli-
23 tical subdivision of the state;
24 b. The United States of America, insofar as it is immune from taxa-
25 tion;
26 c. Any corporation or association, or trust, or community chest, fund
27 or foundation organized and operated exclusively for religious, charita-
28 ble or educational purposes, or for the prevention of cruelty to chil-
29 dren or animals, and no part of the net earnings of which inures to the
30 benefit of any private shareholder or individual and no substantial part
31 of the activities of which is carrying on propaganda, or otherwise
32 attempting to influence legislation; provided, however, that nothing in
33 this paragraph shall include an organization operated for the primary
34 purpose of carrying on a trade or business for profit, whether or not
35 all of its profits are payable to one or more organizations described in
36 this paragraph.
37 (6) Any final determination of the amount of any tax payable hereunder
38 shall be reviewable for error, illegality or unconstitutionality or any
39 other reason whatsoever by a proceeding under article seventy-eight of
40 the civil practice law and rules if application therefor is made to the
41 supreme court within thirty days after the giving of the notice of such
42 final determination, provided, however, that any such proceeding under
43 article seventy-eight of the civil practice law and rules shall not be
44 instituted unless:
45 a. The amount of any tax sought to be reviewed, with such interest and
46 penalties thereon as may be provided for by local law shall be first
47 deposited and there is filed an undertaking, issued by a surety company
48 authorized to transact business in this state and approved by the super-
49 intendent of financial services of this state as to solvency and respon-
50 sibility, in such amount as a justice of the supreme court shall approve
51 to the effect that if such proceeding be dismissed or the tax confirmed
52 the petitioner will pay all costs and charges which may accrue in the
53 prosecution of such proceeding; or
54 b. At the option of the petitioner such undertaking may be in a sum
55 sufficient to cover the taxes, interests and penalties stated in such
56 determination plus the costs and charges which may accrue against it in
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1 the prosecution of the proceeding, in which event the petitioner shall
2 not be required to pay such taxes, interest or penalties as a condition
3 precedent to the application.
4 (7) Where any tax imposed hereunder shall have been erroneously, ille-
5 gally or unconstitutionally collected and application for the refund
6 thereof duly made to the proper fiscal officer or officers, and such
7 officer or officers shall have made a determination denying such refund,
8 such determination shall be reviewable by a proceeding under article
9 seventy-eight of the civil practice law and rules, provided, however,
10 that such proceeding is instituted within thirty days after the giving
11 of the notice of such denial, that a final determination of tax due was
12 not previously made, and that an undertaking is filed with the proper
13 fiscal officer or officers in such amount and with such sureties as a
14 justice of the supreme court shall approve to the effect that if such
15 proceeding be dismissed or the tax confirmed, the petitioner will pay
16 all costs and charges which may accrue in the prosecution of such
17 proceeding.
18 (8) Except in the case of a wilfully false or fraudulent return with
19 intent to evade the tax, no assessment of additional tax shall be made
20 after the expiration of more than three years from the date of the
21 filing of a return, provided, however, that where no return has been
22 filed as provided by law the tax may be assessed at any time.
23 (9) All revenues resulting from the imposition of the tax under the
24 local laws shall be paid into the treasury of the city of Beacon and
25 shall be credited to and deposited in the general fund of the city. Such
26 revenues may be used for any lawful purpose.
27 (10) If any provision of this section or the application thereof to
28 any person or circumstance shall be held invalid, the remainder of this
29 section and the application of such provision to other persons or
30 circumstances shall not be affected thereby.
31 § 2. This act shall take effect immediately and shall expire and be
32 deemed repealed 3 years after such date.
