Sullivan two-percent room tax likely to rise

Prices will stay regionally competitive

By FRITZ MAYER

MONTICELLO, NY — Sullivan County lawmakers were blocked by officials in Albany last year in their attempt to get a hike in the sales tax and the room tax. Now, they will try again, at least with the room tax. The room tax, which is more formally called the hotel occupancy tax and is paid by visitors who stay in hotel, motel and bed and breakfast rooms, currently stands at two percent.

Legislation approved in the finance committee meeting on November 9 would raise the tax to as much as seven percent. Officials stressed, however, that the tax would not rise to seven percent in the near future. Instead, according to Roberta Byron-Lockwood, CEO and president of the Sullivan County Visitors Association, the rise would be on the order of four or five percent, with the objective of keeping room-tax rates competitive with other counties in the region. The seven-percent ceiling would allow lawmakers to raise the rate again should it become necessary, without going back to Albany lawmakers for approval. However, even with an increase to the full seven percent, the cost would still be a bargain, compared to destinations such as New York City where the room tax ranges up to 18 percent and beyond.

At the meeting, Legislator Jodi Goodman suggested that the proposed seven-percent increase was not high enough given the rates in other locations. But, said Legislators Ron Hiatt and Jonathan Rouis, given the fact that officials are attempting to rebuild the tourism industry in the county, “seven percent is enough.”

The visitors association and other county-affiliated agencies have been struggling with budget problems since June when a proposed sales tax increase was not approved in Albany. Assemblywoman Aileen Gunther opposed the hike. The newly proposed room tax would also need approval from Albany, and two weeks ago Gunther said she was supportive of such an increase. She speculated that if a casino opens in the county, and brings more hotel or motel rooms, the additional revenue to the county could be significant.

Money from the tax hike would go to fund activities of the visitors association.

Byron-Lockwood has been lobbying for full funding for her agency, arguing that the money it spends brings tourists and their dollars to the county. Herb Clark, vice president of the association, cited newly released figures showing that tourism remains a vital part of the county’s economy. According to Clark, tourism provides 4,311 direct jobs in the county and another 6,300 indirect jobs. Those jobs provide $71 million in direct income and $124 million in indirect income.