Ulster County Legislature moves to raise hotel bed tax

Posted 4/12/23

During its March Session, the Ulster County Legislature adopted Resolution No. 11, which will ask permission of the State for the County to raise the occupancy tax on overnight rentals in the County. …

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Ulster County Legislature moves to raise hotel bed tax

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During its March Session, the Ulster County Legislature adopted Resolution No. 11, which will ask permission of the State for the County to raise the occupancy tax on overnight rentals in the County. The current levy, also known as the bed tax, was set at 2% in 1991.

“Our request to the State to change our taxing policy will ensure Ulster County can line up with our surrounding counties’ occupancy tax that out of town visitors pay. This ‘wealthy out of towner tax’ that is assumed by the wonderful visitors to our county from other parts of the state, country and all over the world that drink our water and use our roads, can be shared with our local municipalities to address and properly regulate the Short-Term Rental boom that has sorely affected our working class,” said Legislator Joe Maloney (District 2 – Saugerties), the sponsor of the Resolution.

Presently, Ulster County’s 2% tax rate is lower than surrounding counties, as well as the statewide tax rate of 6% in neighboring Pennsylvania. As part of Local Law Number 5 of 1991, all-inclusive resorts in Ulster County are taxed at an even lower rate.

“This 2% increase will be paid by people who come to our county to enjoy our hospitality, our hotels, our spas, which even if they spent $500 a night, would equate to a $10 increase. This revenue could be used to address our housing crisis, meet our climate goals and fix roads in our community,” said Majority Leader Jonathan Heppner (District 23 – Woodstock & Hurley).

As a home rule request, the state legislature must now pass a bill in each house authorizing the Ulster County Legislature to raise the occupancy tax, which are usually considered at the end of Legislative Session in June. Following passage and the Governor’s signature, the Ulster County Legislature will enact a local law enacting the policy.

“Our municipalities need the County’s support to regulate these LLCs and greedy out of towners buying up large amounts of our housing stock that are forcing out our waitstaff, drivers, teachers, and laborers from their homes. Make no mistake, one of the leading causes of Ulster County’s housing crisis is Airbnb and we need regulations in place to protect our constituents from being forced out of their hometowns,” concluded Maloney.