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Bill

S 9374

Authorizes the town of Clinton to impose an occupancy tax

2025 Regular Session Introduced by Michelle Hinchey

Clinton may impose a temporary up to 3% hotel occupancy tax on guests, with revenues to the town general fund and specific administration, collection, and sunset rules.

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WeVote Research Nonpartisan
Bill Summary · S 9374

Overview

Bill S. 9374 proposes to authorize the town of Clinton, in Dutchess County, New York, to impose an occupancy tax on hotel and motel rooms within the town. The authorization is temporary, expiring three years after the act takes effect, and revenues would flow to Clinton’s general fund.

Main purpose and intent

  • Allow Clinton to adopt and amend local laws imposing a hotel/motel occupancy tax in addition to existing town taxes.
  • Set a maximum tax rate and establish collection, administration, and judicial processes for the tax.
  • Provide a mechanism for taxpayers and the town to resolve disputes and ensure lawful collection.

Key provisions and changes

  • Tax authorization and scope
    • The town of Clinton may adopt and amend local laws to impose an occupancy tax on persons occupying hotel or motel rooms.
    • Included facilities: traditional hotels/motels and places offering overnight lodging such as bed and breakfasts, conference centers, agricultural event venues, and tourist facilities.
  • Tax rate
    • The occupancy tax rate may not exceed 3% of the per diem rental rate for each room.
    • The tax does not apply to permanent residents (defined as someone occupying a room for at least 30 consecutive days).
  • Administration and collection
    • The town’s chief fiscal officer would collect and administer the tax, using methods similar to other town taxes or as provided by local law.
    • Tax may be paid to the hotel/motel owner or rent payer, who would in turn remit to the town; owners may collect the tax from occupants as part of the rent.
    • The town chief fiscal officer must be joined as a party in any collection action.
  • Filing and payment
    • Local laws may require monthly tax returns and payments, or a different reporting period as determined by the local law.
  • Exemptions and restrictions
    • The tax cannot be imposed on certain entities listed in state tax law (e.g., state or federal governments, certain religious, charitable, or educational organizations meeting specific criteria). See referenced statutory exemptions.
  • Judicial review and refunds
    • Final determinations of tax payable can be reviewed under CPLR Article 78 in Supreme Court within 30 days of notice, with procedural requirements (e.g., deposit or undertaking to cover costs, possible alternative security).
    • Refund determinations in cases of erroneous, illegal, or unconstitutional collections are also subject to Article 78 review with similar conditions.
  • Limitations on assessment and refunds
    • Generally, no assessment of additional tax may be made more than three years after a filed return (with exceptions for fraud or no return filed).
    • If no return is filed, the tax may be assessed at any time.
  • Revenue use
    • All tax revenues must be deposited into Clinton’s general fund and may be used for any lawful town purpose.
  • Expiration and repeal
    • The act takes effect immediately but automatically expires three years after the effective date, unless extended or renewed by subsequent legislation.

Who and what is affected

  • Affected: hotel and motel operators in the town of Clinton, Dutchess County.
  • Occupants: guests staying in taxable rooms (non-permanent residents) would be subject to the 3% occupancy tax.
  • Local government: Clinton would administer, collect, and retain revenues in its general fund.
  • Exempt entities: certain state, federal, religious, charitable, or educational organizations may be exempt under applicable exemptions in law.

Procedural and timeline aspects

  • Effective date: Act takes effect immediately upon enactment.
  • Duration: Automatic expiration 3 years after the act’s effective date.
  • Legislative milestones:
    • 1st report and referral processed in 2026.
    • Referred to the Investigations and Government Operations Committee in March 2026.
  • Reviewability: Tax determinations and refunds subject to CPLR Article 78 review with specified conditions for petitions and security.

Notes

  • The bill explicitly adds a new section (Tax Law § 1202-ll) governing the occupancy tax in Clinton and provides comprehensive provisions on administration, collection, exemptions, disputes, and sunset.

Compiled from official sources — confirm details with the bill’s official record.

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