S 6998: Relates to hotel and motel taxes in Saratoga county and the city of Saratoga Springs; increases the allowable amount of tax imposed by the county; removes exemptions for properties having less than 4 units; relates to the disposition of tax revenues collected; eliminates an advisory committee.

  
  STATE OF NEW YORK ________________________________________________________________________ 6998 2025-2026 Regular Sessions  IN SENATE March 28, 2025 ___________ Introduced by Sen. TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to hotel and motel taxes in Saratoga county and the city of Saratoga Springs The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1202-g of the tax law, as amended by chapter 372 of 2 the laws of 1987, subdivisions 1-a and 1-b as amended and subdivision 3 1-c as added by chapter 24 of the laws of 2003, paragraph a of subdivi- 4 sion 6 as further amended by section 104 of part A of chapter 62 of the 5 laws of 2011 and subdivision 9 as amended by chapter 262 of the laws of 6 2015, is amended to read as follows: 7 § [1202-g. Tourist home, inn, hotel] 1202-g-1. Hotel or motel taxes in 8 Saratoga county and the city of Saratoga Springs. (1) a. Notwithstanding 9 any other provisions of law to the contrary, the county of Saratoga is 10 hereby authorized and empowered to adopt and amend local laws imposing 11 in such county a tax, in addition to any other tax authorized and 12 imposed pursuant to this article, such as the legislature has or would 13 have the power and authority to impose upon persons occupying [tourist 14 home, inn,] hotel or motel rooms in such county. The rates of such tax 15 shall [be one] not exceed three percent of the per diem rental rate for 16 each room provided, however, such tax shall not be applicable to a 17 permanent resident of [such tourist home, inn,] a hotel or motel [or to 18 rooms in a tourist home having less than four rentable units]. 19 b. For the purposes of this section [the term]: 20 (i) "hotel" or "motel" shall mean and include any facility consisting 21 of rentable units and providing lodging on an overnight basis and shall 22 include those facilities designated and commonly known as "bed and 23 breakfast" and "tourist" facilities; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10862-02-5 
 S. 6998 2 1 (ii) "permanent resident" shall mean a person occupying any room or 2 rooms in a [tourist home, inn,] hotel or motel for at least ninety 3 consecutive days. 4 (1-a) Notwithstanding any other provisions of law to the contrary, the 5 city of Saratoga Springs, in the county of Saratoga, is hereby author- 6 ized and empowered to adopt and amend local laws imposing in such city a 7 tax, in addition to any other tax authorized and imposed pursuant to 8 this article, such as the legislature has or would have the power and 9 authority to impose upon persons occupying [tourist home, inn,] hotel or 10 motel rooms in such city. The rates of such tax shall [be] not exceed 11 one percent of the per diem rental rate for each room provided, however, 12 such tax shall not be applicable to a permanent resident of such [tour- 13 ist home, inn,] hotel or motel [or to rooms in such lodging facilities 14 having less than four rentable units]. 15 (1-b) Notwithstanding any other provisions of law to the contrary, the 16 city of Saratoga Springs, in the county of Saratoga, is hereby author- 17 ized and empowered to adopt and amend local laws imposing in such city a 18 tax, in addition to any other tax authorized and imposed pursuant to 19 this article, such as the legislature has or would have the power and 20 authority to impose upon persons occupying [tourist home, inn,] hotel or 21 motel rooms in such city. The rates of such additional tax shall not 22 exceed two percent of the per diem rental rate for each room provided, 23 however, such tax shall not be applicable to a permanent resident of 24 such [tourist home, inn,] hotel or motel [or to rooms in such lodging 25 facilities having less than four rentable units]. 26 (1-c) Notwithstanding any other provisions of law to the contrary, the 27 city of Saratoga Springs, in the county of Saratoga, is hereby author- 28 ized and empowered to adopt and amend local laws imposing in such city a 29 tax, in addition to any other tax authorized and imposed pursuant to 30 this article, such as the legislature has or would have the power and 31 authority to impose upon persons occupying [tourist home, inn,] hotel or 32 motel rooms in such city. The rates of such additional tax shall not 33 exceed two percent of the per diem rental rate for each room provided, 34 however, such tax shall not be applicable to a permanent resident of 35 such [tourist home, inn,] hotel or motel [or to rooms in such lodging 36 facilities having less than four rentable units]. 37 (2) Such taxes may be collected and administered by the county treas- 38 urer or other fiscal officers of Saratoga county by such means and in 39 such manner as other taxes which are now collected and administered by 40 such officers or as otherwise may be provided by such local law. 41 (3) Such local laws may provide that any taxes imposed shall be paid 42 by the person liable therefor to the owner of the [tourist home, inn,] 43 hotel or motel room occupied or to the person entitled to be paid the 44 rent or charge for the [tourist home, inn,] hotel or motel room occupied 45 for and on account of the county of Saratoga and the city of Saratoga 46 Springs imposing the taxes and that such owner or person entitled to be 47 paid the rent or charge shall be liable for the collection and payment 48 of the taxes; and that such owner or person entitled to be paid the rent 49 or charge shall have the same right in respect to collecting the taxes 50 from the person occupying the [tourist home, inn,] hotel or motel room, 51 or in respect to nonpayment of the taxes by the person occupying the 52 [tourist home, inn,] hotel or motel room, as if the taxes were a part of 53 the rent or charge and payable at the same time as the rent or charge; 54 provided, however, that the county treasurer or other fiscal officers of 55 the county and fiscal officer of the city, specified in such local laws, 56 shall be joined as a party in any action or proceeding brought to 
 S. 6998 3 1 collect the taxes by the owner or by the person entitled to be paid the 2 rent or charge. 3 (4) Such local laws may provide for the filing of returns and the 4 payment of the taxes on a monthly basis or on the basis of any longer or 5 shorter period of time. 6 (5) This section shall not authorize the imposition of such taxes upon 7 any of the following: 8 a. The state of New York, or any public corporation (including a 9 public corporation created pursuant to agreement or compact with another 10 state or the dominion of Canada), improvement district or other poli- 11 tical subdivision of the state; 12 b. The United States of America, insofar as it is immune from taxa- 13 tion; 14 c. Any corporation or association, or trust, or community chest, fund 15 or foundation organized and operated exclusively for religious, charita- 16 ble or educational purposes, or for the prevention of cruelty to chil- 17 dren or animals, and no part of the net earnings of which inures to the 18 benefit of any private shareholder or individual and no substantial part 19 of the activities of which is carrying on propaganda, or otherwise 20 attempting to influence legislation; provided, however, that nothing in 21 this paragraph shall include an organization operated for the primary 22 purpose of carrying on a trade or business for profit, whether or not 23 all of its profits are payable to one or more organizations described in 24 this paragraph. 25 (6) Any final determination of the amount of any taxes payable here- 26 under shall be reviewable for error, illegality or unconstitutionality 27 or any other reason whatsoever by a proceeding under article seventy- 28 eight of the civil practice law and rules if application therefor is 29 made to the supreme court within thirty days after the giving of the 30 notice of such final determination, provided, however, that any such 31 proceeding under article seventy-eight of the civil practice law and 32 rules shall not be instituted unless: 33 a. The amount of any taxes sought to be reviewed, with such interest 34 and penalties thereon as may be provided for by local laws or regu- 35 lations shall be first deposited and there is filed an undertaking, 36 issued by a surety company authorized to transmit business in this state 37 and approved by the superintendent of financial services of this state 38 as to solvency and responsibility, in such amount as a justice of the 39 supreme court shall approve to the effect that if such proceeding be 40 dismissed or the taxes confirmed the petitioner will pay all costs and 41 charges which may accrue in the prosecution of such proceeding; or[;] 42 b. At the option of the petitioner such undertaking may be in a sum 43 sufficient to cover the taxes, interests and penalties stated in such 44 determination plus the costs and charges which may accrue against it in 45 the prosecution of the proceeding, in which event the petitioner shall 46 not be required to pay such taxes, interest or penalties as a condition 47 precedent to the application. 48 (7) Where any taxes imposed hereunder shall have been erroneously, 49 illegally or unconstitutionally collected and application for the refund 50 thereof duly made to the proper fiscal officer or officers, and such 51 officer or officers shall have made a determination denying such refund, 52 such determination shall be reviewable by a proceeding under article 53 seventy-eight of the civil practice law and rules, provided, however, 54 that such proceeding is instituted within thirty days after the giving 55 of the notice of such denial, that a final determination of taxes due 56 was not previously made, and that an undertaking is filed with the prop- 
 S. 6998 4 1 er fiscal officer or officers in such amount and with such sureties as a 2 justice of the supreme court shall approve to the effect that if such 3 proceeding be dismissed or the taxes confirmed, the petitioner will pay 4 all costs and charges which may accrue in the prosecution of such 5 proceeding. 6 (8) Except in the case of a [wilfully] willfully false or fraudulent 7 return with intent to evade the taxes, no assessment of additional taxes 8 shall be made after the expiration of more than three years from the 9 date of the filing of a return, provided, however, that where no return 10 has been filed as provided by law the taxes may be assessed at any time. 11 (9) Revenues resulting from the imposition of tax authorized by this 12 section shall be paid into the treasury of the county of Saratoga and 13 shall be credited to and deposited in the general fund of the county; 14 the net collections therefrom shall thereafter be allocated by the board 15 of supervisors of Saratoga county [fifty percent] for the promotion of 16 tourism and [conventions and fifty percent to the Saratoga County Pros- 17 perity Partnership, Inc. for the promotion of tourism and] other econom- 18 ic development-related purposes provided, however, that the net 19 collections pursuant to subdivision one-a of this section shall be paid 20 to the general fund of the city of Saratoga Springs, the net collections 21 pursuant to subdivision one-b of this section shall be paid to the city 22 of Saratoga Springs convention and tourism bureau for use in marketing 23 the city of Saratoga Springs as a destination for conventions and group 24 tours and the net collections pursuant to subdivision one-c of this 25 section shall be placed in an interest bearing capital reserve account 26 to fund the expansion and renovation of the City Center until such time 27 as the expansion and renovation has been completed, and thereafter shall 28 be placed in a special account which may be drawn upon to offset any 29 operating deficit maintained by the City Center. [A committee of nine 30 persons to advise the board on expenditures made by the county for the 31 promotion of tourism and conventions shall be appointed by such board of 32 supervisors, four of whom shall be members of such body who shall 33 include the chair of the board of supervisors, the chair of the board's 34 economic development committee, the chair of the board's law and finance 35 committee, and one member of the board of supervisors who also serves as 36 a director of the Saratoga County Prosperity Partnership, Inc. and five 37 additional members who shall include a representative from the Saratoga 38 county chamber of commerce, a representative from the chamber of south- 39 ern Saratoga county, a representative from the Saratoga convention and 40 tourism bureau, a representative from the Saratoga Springs city center 41 authority and the Saratoga county treasurer.] 42 (10) [Such local laws as may be enacted pursuant to this section shall 43 remain in full force and effect only so long as the board of supervisors 44 of Saratoga county shall continue to expend for industrial and tourist 45 promotion at least fifty thousand dollars per annum of funds other than 46 those revenues collected pursuant to this section and the local laws 47 passed hereunder. 48 (11)] If any provision of this section or the application thereof to 49 any person or circumstance shall be held invalid, the remainder of this 50 section and the application of such provision to other persons or 51 circumstances shall not be affected thereby. 52 § 2. This act shall take effect immediately.