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Two lawmakers pushing 5% bed tax
By Donna Snyder, Cattaraugus
Correspondent LITTLE VALLEY - Two Cattaraugus County legislators from Olean are enthusiastic about a proposal for a 5 percent occupancy tax, while some in tourism say they weren't consulted about the new tax. Thomas M. Moser, R-Olean, and William R. Rostan, R-Olean, are co-sponsoring a resolution that legislators will consider today. The measure would seek special legislation from the state to impose an occupancy, or bed, tax expected to generate $500,000 a year. The proposed 5 percent tax would apply to overnight lodging at motels, hotels, bed-and-breakfast facilities, inns, cabins, cottages, campgrounds, tourist homes, condominiums and convention centers. An exemption would be granted to campgrounds where people provide their own shelter. Rostan said the tax was discussed several times during public meetings of the Finance Committee, when a 2003 budget to be unveiled today took center stage. "There's no secret about this," said Rostan. "The only feedback I've gotten on this has been positive." If the tax is enacted at 5 percent, it would be equal to raising property taxes 2 percent, Rostan said. The county expects to raise $500,000 the first year of the tax, which would probably become effective Jan. 1, 2004. Rostan and Moser said the estimate is based on 40 percent occupancy rates of lodging facilities. "The benefits will be felt down the road as a way to finance mandates." The money would be used by the Department of Planning, Tourism and Economic Development as budget revenue, with an undetermined amount being used for tourism. Moser said it would pay for a new planner position to accommodate the expansion of the county's promotion of the Route 219 corridor as well as a state rest stop near Allegany on I-86. Currently under construction, the rest stop will have an area for tourism, and Moser said it may be possible to have a person on-site to meet visitors. The measure has its detractors. Dan McCandless of Franklinville, who operates a bed-and-breakfast, said Tuesday he was unaware the issue will be discussed today. McCandless said he doubts a 40 percent occupancy rate applies to all county facilities year-round. "I know it doesn't at our place," he said. Brian McFadden of the Ellicottville Chamber of Commerce and the county's Tourism Promotion Agency said, "It's pretty sad they just went ahead with this and didn't talk to the county's tourism people about it." "They are doing it on their own, and their
numbers are way off base," McFadden said. |
