When will Auburn be able to implement its hotel occupancy tax?
City Council voted Thursday to move forward with the process to implement a hotel tax, also known as a bed tax. At its June 12 meeting, there will be a first reading of the local law to amend the city code and create the tax. A public hearing will be held at 5:00p at the June 26 city council meeting, allowing residents to voice their opinions on the proposed law. Council will then consider the law for a vote.
Council originally tried to implement a bed tax in 2023 by requesting that Assemblyman John Lemondes and State Senator Rachel May introduce home rule request bills in their respective houses, which are required for municipalities in the state to implement bed taxes. While Senator May quickly voiced her support for the legislation and introduced it in the Senate, Assemblyman Lemondes refused to do so, preventing the city from moving forward with the process, something that drew the ire of Mayor Jimmy Giannettino.
The city did not give up, and in January, again requested that Assemblyman Lemondes and Senator May introduce legislation in their respective chambers. This would not be necessary; however, Senator May was able to include authorization for the city to implement the tax in the state budget, sidestepping the traditional process.
A bed tax is a tax on each night’s stay at a hotel, motel, or Airbnb-style rental. Under the law, Auburn is authorized to charge up to 5% for stays in such businesses. During their initial efforts to implement the tax in 2023, City Clerk Chuck Mason estimated that a 5% tax could see the city attain $500,000 per year in revenue.
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