State and local officials are once again seeking to authorize a bill that would levy a hotel occupancy tax for the town/village of Harrison, despite the bill’s failure in the past.
The bill, which would enact a 3 percent charge on hotel occupants in Harrison, has lacked approval from both Gov. Andrew Cuomo, a Democrat, and the state Senate for the past two years.
“I think it’s going to pass this year,” said state Sen. George Latimer, a Rye Democrat. “It doesn’t pose any negatives for the county of Westchester, and local governments will get the revenue they need not to raise property taxes.”
The Renaissance Westchester Hotel, which is located on West Red Oak Lane, and the Hyatt House, located on Corporate Park Drive, are the only two hotels in Harrison.
The neighboring village of Rye Brook—the first municipality in the entire state other than a city or county was given the authority to levy the tax back in 2010—generates approximately $600,000 in annual revenue through the occupancy tax, and Harrison is roughly estimated to generate up to $500,000 little, according to state and local officials.
Because of its economic benefits to the community, Harrison Mayor Rob Belmont, a Republican, has spent his tenure in office consistently championing the legislation, despite Cuomo’s reluctance to support the bill.
“I’ve been trying to get the bill passed since I got here,” Belmont said. “There’s been a lot of cooperation from [state officials].”
State Assemblyman David Buchwald, a White Plains Democrat, added that local officials’ determination to see the bill pass over the last five years displays the long-term interest the people of Harrison have in the legislation.
The attraction of the hotel tax for local governments is that it provides municipalities the ability to generate revenue outside of increasing property taxes on local residents.
“For the most part, residents of Harrison don’t tend to stay at local hotels, so it should be of minimal impact to them,” Buchwald said.
The tax will actually impact non-residents, according to Latimer, who mentioned that individuals on business trips will most likely pay the tax with their business expense accounts.
“An occupancy tax will not discourage business and is not based on income,” he said.
Other local municipalities that already impose a similar occupancy tax on hotel patrons include the cities of New Rochelle, Rye, Yonkers and White Plains. Westchester County also implements its own 3 percent hotel tax on patrons.
“So many Westchester [County] municipalities are allowed to have an occupancy tax that it’s only proper that a town like Harrison be included as well,” Buchwald said.
Although the bill would be effective immediately if authorized by Cuomo, Harrison’s elected officials would have to adopt a local law to initiate the tax.
According to state law, the hotel tax has a three-year sunset clause attached to it meaning that it must be renewed by the state on an ongoing basis. According to Latimer, Cuomo has verbally agreed to sign the bill this time around, as of press time.
