Dear Editor,
Whenever you have a large group of family or friends from out-of-town to visit, chances are they stay at a hotel in Albany County. What they probably don’t know is that a bill currently under consideration by the County Legislature would raise the cost of their visit by half-a-percent every night they’re in town.
The proposed raise to Albany County’s hotel occupancy tax may seem like small potatoes. For starters, it’s not a direct tax on County residents, and would mostly target out-of-towners. Second, the tax increase appears so small that it’s not worth scrutinizing. And finally, it would be creating a funding stream for County economic development, a goal my colleagues across party lines all share.
Sadly, as is the case every time government raises taxes, the choice we’ve been given versus the alternative could not be more stark.
Albany County collects a 6 percent tax on hotel occupancy, as well as 8 percent sales tax, or 14 percent total. If you’re staying two nights at one of the many places along Wolf Road or Central Avenue, that means you’d be paying anywhere from $8.40 to $35 for the privilege of that stay, according to recent rates. Adding a half-percent ($0.30 to $1.25) may not feel like much but add that to the other assorted fees on your room bill and the total runs up quickly. Whether you’re staying short-term, long-term, here for business or pleasure, would you rather pay extra in Albany County, or pay less for something comparable in lower-taxed Schenectady, Rensselaer or Saratoga Counties?
This increased tax is the definition of “death by a thousand cuts.”
We’d be cutting off our nose to spite our face with this tax, but the nuance goes deeper. A little-known fact: half of the current hotel tax proceeds are paid to the Albany Capital convention center authority fund, which is debt-free and in no need of the millions it collects from the tax every year. It’s the only state authority in New York funded by local tax dollars. Instead of considering a change to this outdated formula to better fund County economic development, our local Democratic representatives in state government are trying to force a tax raise without a better alternative.
I’m happy to say my Republican and Conservative colleagues and I identified that better alternative. As a Conference, we proposed a bill redirecting existing revenue generated from commercial casino gaming to fund economic development. Revenue we collect from Rivers Casino is currently directed to the General Fund. Through phase-in and sunset clauses, and some creative accounting, we would avoid spending down our budget and surplus. It would also generate more funding for our efforts ($2.45 million annually when fully phased-in) than the increased hotel tax (less than $1 million annually).
Surrounding counties have funded economic development for decades, and we need to play catch-up. Let’s be serious about providing a sustainable and adequate source to compete with neighboring counties like Saratoga and Schenectady, which both spend millions on economic development. As County leaders, protecting taxpayers and the local economy are top priorities. If we can sidestep raising taxes while stimulating job growth and opportunities, we should seize the opportunity. I hope my colleagues all agree this is a golden opportunity to do things with common sense.
Frank Mauriello
Minority Leader, Albany County Legislature
