Auburn is poised to once again seek a hotel occupancy tax.
City Council will vote Thursday on a resolution authorizing Mayor Jimmy Giannettino to request assistance from State Senator Rachel May and Assemblyman John Lemondes for Home Rule request legislation, the first step in establishing a hotel tax. A hotel tax, also known as a bed tax, is a tax on each night’s stay at a hotel, motel, or Airbnb-style rental.
Under state law, Senator May and Assemblyman Lemondes would need to support the city’s decision and introduce home rule request bills in their respective houses. The city would then need to pass a resolution supporting the bills. If adopted by the legislature and signed into law by the governor, Council would then have to adopt a local law establishing the bed tax.
Last year the city attempted to implement a 5% hotel occupancy tax, sending requests to the legislators. Senator May quickly voiced her support for the tax and introduced legislation in the senate; however, Assemblyman Lemondes refused to support it, preventing the city from moving forward with the home rule process. Mayor Giannettino was particularly frustrated by the assemblyman’s decision, noting that he and the council were not notified about it, instead, they found out about it through the press.
Lemondes had previously supported requests from Skaneateles and Weedsport for a bed tax. He defended his decision to deny Auburn the support he had given to the aforementioned villages by saying that, while Skaneateles and Weedsport residents wanted the tax, Auburn residents did not.
Assemblyman Lemondes’ failure to support the legisilation forced the city to amend its proposed budget in June to reflect the loss of revenue anticipated from the tax.
The mayor previously told Finger Lakes News Radio that revenue generated from the tax would have gone to offset costs related to increased tourism in the city, such as public safety and road maintenance, without burdening property owners.
“[The tax] is one way [Lemondes] could have helped us. This is one way that he could have provided property tax relief to the people of Auburn.”
City Clerk Chuck Mason estimated that the 5% tax would have provided Auburn with $500,000 in revenue.
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