Authorizes the town of Greenburgh, specified villages therein, and the village of Sleepy Hollow in the town of Mount Pleasant to adopt a local law to impose a 3% hotel/motel occupancy tax

BILL NUMBER:S5785

Title of bill

An act to amend the tax law, in relation to authorizing the town of Greenburgh to adopt a local law to impose a hotel/motel occupancy tax for hotels not located in a village; authorizing specified villages in the towns of Greenburgh and Mount Pleasant to adopt local laws to impose a hotel/motel occupancy tax in such villages; and providing for the repeal of such provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:. To authorize the Town of Greenburgh (Westchester County) and certain villages within the Town, and the village of Sleepy Hollow in the town of Mount Pleasant in Westchester County to impose a hotel/motel occupancy tax of up to three percent in order to gain revenue and reduce dependence on already high real property taxes.

Summary of specific provisions

Section 1 of the bill amends the tax law to add a new Section 1202-cc to:

(1) authorize the town of Greenburgh and the villages of Tarrytown, Irvington, Ardsley, Elmsford, Dobbs Ferry, Hastings, and Sleepy Hollow in the towns of Greenburgh and Mount Pleasant to adopt and amend local laws imposing a tax on persons occupying any room in any hotel/motel in each such jurisdiction;

(2) define the term hotel;

(3) set the maximum amount of such tax at 3%;

(4) set forth various miscellaneous provisions including: the method for which such tax is to be collected and administered; that any tax imposed shall be paid by the person liable therefore to the owner of the hotel/motel; that such municipalities may determine the dates for filing of returns and the payment of taxes; that certain entities are exempted from such tax; provisions for a review for error, illegality or unconstitutionality of any tax;

(5) provide that taxes collected shall be paid into the treasury of the town of Greenburgh and the respective villages, credited to their general funds, and allocated by the town board and the trustees of each village; except one-sixth of the taxes collected shall be allocated for the purpose of promoting economic development and tourism within the town or respective villages;

(6) provide that the town of Greenburgh and the respective villages shall consult with hotel and motel representatives within the town or village to determine how best to appropriate the money allocated for promoting economic development and tourism.

Section 2 is the effective date.

Justification

Particularly during these difficult economic times, municipalities need additional non-property tax sources of revenue to fund the basic services to keep their communities safe and properly serviced. This legislation will assist the town of Greenburgh and its villages and the village of Sleepy Hollow in the town of Mount

Pleasant to fund necessary services. After discussions with the hospitality industry the bill has been revised to require that the municipality levying the tax set aside one-sixth of the taxes collected to promote economic development and tourism within the respective municipality. This revenue will help promote economic development and tourism.

Legislative history

2012: A8804 referred to ways and means

Fiscal implications

None to the State

Effective date

The act shall take effect immediately, and shall sunset on September 1, 2016.