BILL NUMBER: S8269A
SPONSOR: BASKIN
 
TITLE OF BILL:
An act to amend the tax law, in relation to authorizing an occupancy tax
in the town of Cheektowaga; and providing for the repeal of such
provisions upon expiration thereof
 
PURPOSE:
This bill authorizes the Town of Cheektowaga, located in Erie County, to
adopt and amend local laws imposing a hotel and motel occupancy tax not
to exceed three percent. The revenue generated may be used for any
lawful purpose as determined by the town.
 
SUMMARY OF SPECIFIC PROVISIONS:
*Section 1: Amends the tax law by adding a new section, 1202-kk, to
authorize the Town of Cheektowaga to impose an occupancy tax of up to 3%
on rooms rented in hotels, motels, boarding houses, and similar accommo-
dations.
*The tax would be administered by the chief fiscal officer of the town.
*The legislation outlines exemptions, including permanent residents (30+
consecutive days), federal and state governments, and tax-exempt organ-
izations operating for charitable, religious, or educational purposes.
*Provides procedural details regarding collection, return filings,
refunds, and review processes through Article 78 proceedings.
*Specifies that each local law enacting the tax may only be effective
for up to two years but may be re-enacted as needed.
*All tax revenues collected shall be paid into the town's general fund.
50% of the revenues shall be used for the town's capital improvements
projects. The remainder shall be used for any lawful purpose.
*If any part of the law is found to be invalid, the remaining provisions
will still remain in effect.
 
JUSTIFICATION:
This bill authorizes the Town of Cheektowaga in Erie County to adopt a
local law that would impose an occupancy tax of up to three percent on
hotel and motel stays. Pursuant to the Municipal Home Rule Law, a town
may adopt local laws that relate to the levy and administration of local
taxes if authorized by the State legislature. The Town of Cheektowaga
has requested special legislation that will enable them to collect a
hotel and motel tax in an effort to raise additional revenue for the
town. Many municipalities throughout New York State implement a hotel
and occupancy tax to generate revenue from the usage of public infras-
tructure by visitors to the municipality.
Cheektowaga contains 17 hotels and attracts a steady flow of visitors
due to its proximity to the Buffalo Niagara International Airport and
other regional destinations. Currently there is no mechanism for the
town to directly tax visitors, even though the town must cover services
they utilize, including road improvements and emergency response. By
collecting a small tax from nonresidents staying in hotels, the town can
raise funds to support local services and infrastructure improvements.
The revenue collected from this tax would fund the town's capital
improvement projects, as well as reduce the burden of property tax
increases on Cheektowaga residents.
This measure gives the town greater flexibility to manage its budget and
meet community needs, while also ensuring that visitors help contribute
to the cost of services they use during their stay.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
None to the state
 
EFFECTIVE DATE:
Immediately