KINGSTON – The state legislature Thursday passed legislation requested by Ulster County permitting it to raise the occupancy tax on hotel, motel, and short-term rental stays from two percent to four percent. The bill, sponsored by State Senator Michelle Hinchey and Assembly Member Sarahana Shrestha, now awaits the governor’s signature.
Neighboring counties have occupancy tax rates at least double that of Ulster County – Dutchess County has had a four percent occupancy tax rate since 2004; Orange County and Sullivan counties both have an occupancy tax of five percent.
“We are long past due for a sensible tax rate that better aligns with our neighbors and keeps money in the pockets of our local taxpayers while providing revenue to tackle urgent priorities, like the housing crisis,” said Ulster County Executive Jen Metzger.
The governor now must sign the bill into law for it to take effect.
Metzger proposed in April to devote a quarter of the annual revenue from an increased occupancy tax to a new Housing Action Fund to address long-term housing needs.
The legislature could take action as early as the July meeting on the county executive’s initiative, which would be seeded with an initial $15 million from the county’s current surplus.
Metzger also proposed dedicating a portion of new occupancy tax revenue to the transportation budget to expand UCAT bus service. Under her proposal, the remaining 50 percent of revenues from an increased occupancy tax would be used to support tourism (10 percent) and general government services (40 percent), offsetting costs to property taxpayers.
