NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9289
SPONSOR: Maher TITLE OF BILL:
An act to amend the tax law, in relation to authorizing the town of
Chester to impose a hotel and motel tax; and providing for the repeal of
such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
Authorizes the town of Chester to impose a hotel and motel tax; and
provides for the repeal of such provisions upon expiration thereof
SUMMARY OF PROVISIONS:
Section 1 - the tax shall not exceed five percent of the per diem rental
rate for each room, and the tax shall not apply to any person occupying
a room for at least ninety consecutive days.
Section 2 - The tax shall be collected and administered by the chief
fiscal officer of the town of Chester in the same manner as other taxes
are not collected
JUSTIFICATION:
This legislation would allow the town of Chester to impose a hotel and
motel tax. The rate of such tax shall not exceed 5 percent of the per
diem rental rate for each room. Pursuant to the Municipal Home Rule Law,
a municipality may adopt local laws that relate to the levy and adminis-
tration of local taxes if authorized by the State legislature. The town
of Chester has requested special legislation which will enable them to
collect a hotel and motel tax in an effort to raise additional revenue
for the town.
PRIOR LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Increased Revenue for Local Government
EFFECTIVE DATE:
Immediately and shall expire and be deemed repealed 3 years after such
date
STATE OF NEW YORK
________________________________________________________________________
9289
IN ASSEMBLY
February 23, 2024
___________
Introduced by M. of A. MAHER -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to authorizing the town of
Chester 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-hh-1 to
2 read as follows:
3 § 1202-hh-1. Hotel or motel taxes in the town of Chester. (1) Notwith-
4 standing any other provisions of law to the contrary, the town of Ches-
5 ter, in the county of Orange, is hereby authorized and empowered to
6 adopt and amend local laws imposing in such town 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 town. 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 town of Chester 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-
25 pied or to the person entitled to be paid the rent or charge for the
26 hotel or motel room occupied for and on account of the town of Chester
27 imposing the tax and that such owner or person entitled to be paid the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13797-01-3
A. 9289 2
1 rent or charge shall be liable for the collection and payment of the
2 tax; and that such owner or person entitled to be paid the rent or
3 charge shall have the same right in respect to collecting the tax from
4 the person occupying the hotel or motel room, or in respect to nonpay-
5 ment of the tax by the person occupying the hotel or motel room, as if
6 the tax were a part of the rent or charge and payable at the same time
7 as the rent or charge; provided, however, that the chief fiscal officer
8 of the town, specified in such local law, shall be joined as a party in
9 any action or proceeding brought to collect the tax by the owner or by
10 the person entitled to be paid the rent or charge.
11 (4) Such local laws may provide for the filing of returns and the
12 payment of the tax on a monthly basis or on the basis of any longer or
13 shorter period of time.
14 (5) This section shall not authorize the imposition of such tax upon
15 any transaction, by or with any of the following in accordance with
16 section twelve hundred thirty of this article:
17 a. The state of New York, or any public corporation (including a
18 public corporation created pursuant to agreement or compact with another
19 state or the Dominion of Canada), improvement district or other poli-
20 tical subdivision of the state;
21 b. The United States of America, insofar as it is immune from taxa-
22 tion; or
23 c. Any corporation or association, or trust, or community chest, fund
24 or foundation organized and operated exclusively for religious, charita-
25 ble or educational purposes, or for the prevention of cruelty to chil-
26 dren or animals, and no part of the net earnings of which inures to the
27 benefit of any private shareholder or individual and no substantial part
28 of the activities of which is carrying on propaganda, or otherwise
29 attempting to influence legislation; provided, however, that nothing in
30 this paragraph shall include an organization operated for the primary
31 purpose of carrying on a trade or business for profit, whether or not
32 all of its profits are payable to one or more organizations described in
33 this paragraph.
34 (6) Any final determination of the amount of any tax payable hereunder
35 shall be reviewable for error, illegality or unconstitutionality or any
36 other reason whatsoever by a proceeding under article seventy-eight of
37 the civil practice law and rules if application therefor is made to the
38 supreme court within thirty days after the giving of the notice of such
39 final determination, provided, however, that any such proceeding under
40 article seventy-eight of the civil practice law and rules shall not be
41 instituted unless:
42 a. The amount of any tax sought to be reviewed, with such interest and
43 penalties thereon as may be provided for by local law shall be first
44 deposited and there is filed an undertaking, issued by a surety company
45 authorized to transact business in this state and approved by the super-
46 intendent of financial services of this state as to solvency and respon-
47 sibility, in such amount as a justice of the supreme court shall approve
48 to the effect that if such proceeding be dismissed or the tax confirmed
49 the petitioner will pay all costs and charges which may accrue in the
50 prosecution of such proceeding; or
51 b. At the option of the petitioner such undertaking may be in a sum
52 sufficient to cover the taxes, interests and penalties stated in such
53 determination plus the costs and charges which may accrue against it in
54 the prosecution of the proceeding, in which event the petitioner shall
55 not be required to pay such taxes, interest or penalties as a condition
56 precedent to the application.
A. 9289 3
1 (7) Where any tax imposed hereunder shall have been erroneously, ille-
2 gally or unconstitutionally collected and application for the refund
3 thereof duly made to the proper fiscal officer or officers, and such
4 officer or officers shall have made a determination denying such refund,
5 such determination shall be reviewable by a proceeding under article
6 seventy-eight of the civil practice law and rules, provided, however,
7 that such proceeding is instituted within thirty days after the giving
8 of the notice of such denial, that a final determination of tax due was
9 not previously made, and that an undertaking is filed with the proper
10 fiscal officer or officers in such amount and with such sureties as a
11 justice of the supreme court shall approve to the effect that if such
12 proceeding be dismissed or the tax confirmed, the petitioner will pay
13 all costs and charges which may accrue in the prosecution of such
14 proceeding.
15 (8) Except in the case of a wilfully false or fraudulent return with
16 intent to evade the tax, no assessment of additional tax shall be made
17 after the expiration of more than three years from the date of the
18 filing of a return, provided, however, that where no return has been
19 filed as provided by law the tax may be assessed at any time.
20 (9) All revenues resulting from the imposition of the tax under the
21 local laws shall be paid into the treasury of the town of Chester and
22 shall be credited to and deposited in the general fund of the town. Such
23 revenues may be used for any lawful purpose.
24 (10) If any provision of this section or the application thereof to
25 any person or circumstance shall be held invalid, the remainder of this
26 section and the application of such provision to other persons or
27 circumstances shall not be affected thereby.
28 § 2. This act shall take effect immediately and shall expire and be
29 deemed repealed 3 years after such date.
