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S 9376

Authorizes the town of Lancaster to impose an occupancy tax

2025 Regular Session Introduced by Patrick Gallivan

Allows Lancaster to impose a local occupancy tax on hotel/motel rooms up to 3% of the per diem rate, with exemptions and three-year sunset.

1ST REPORT CAL.1076
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WeVote Research Nonpartisan
Bill Summary · S 9376

Bill Summary: S. 9376 (2025-2026) – Occupancy Tax in the Town of Lancaster, Erie County (New York)

Basic Information

  • Jurisdiction: New York State
  • Bill Number: S 9376
  • Session: 2025-2026
  • Introduced by: Senator Gallivan
  • Committee: Investigations and Government Operations
  • Sponsor: Co-sponsor Patrick Gallivan
  • Effective Date / Sunset: Immediate effective date; expires December 31, 2028 (automatic repeal of provisions unless extended or renewed)

Purpose and Intent

  • Authorize the Town of Lancaster, in Erie County, to adopt and amend local laws to impose a local occupancy tax on hotel/motel rooms, in addition to existing taxes.
  • Define the tax base, rate, collection, administration, and enforcement mechanisms, with specific protections and limitations.

Key Provisions

1) Authorization and Scope (Section 1202-rr(1))

  • The Town of Lancaster may adopt local laws to impose an occupancy tax on persons occupying hotel or motel rooms in the town.
  • “Hotel” or “motel” includes facilities providing overnight lodging, including bed and breakfast and tourist facilities.
  • Tax rate cap: The tax rate may not exceed 3% of the per diem rental rate for each room.
  • Exemption for permanent residents: The tax does not apply to permanent residents (defined as someone occupying a room for at least 90 consecutive days).

2) Administration and Collection (Section 1202-rr(2)-(3))

  • The town’s chief fiscal officer may collect and administer the tax, using methods similar to other local taxes.
  • The tax may be collected from or paid by the hotel/motel owner (as the rent/charge) and passed through to the occupant, with the owner or recipient of rent responsible for collection and remittance.
  • The chief fiscal officer must be joined as a party in any collection action.

3) Tax Returns and Payment Schedule (Section 1202-rr(4))

  • Local laws may specify filing and payment frequencies (monthly or other periods).

4) Exemptions and Prohibited Transactions (Section 1202-rr(5))

  • The new occupancy tax cannot be applied to:
    • The State of New York and its public corporations, districts, or subdivisions.
    • The United States government and immunized entities.
    • Certain nonprofit religious, charitable, or educational organizations, subject to limitations (and excluding for-profit trade or business activities).

5) Judicial Review and Remedies (Section 1202-rr(6)-(7))

  • Final determinations of tax payable can be reviewed under Article 78 of the Civil Practice Law and Rules if started within 30 days after notice, with specific undertakings/surety requirements to stay collection during review or to cover costs.

6) Refunds and Corrections (Section 1202-rr(7)-(8))

  • Procedures for refunds if taxes are erroneously or unlawfully collected, including timelines and undertakings to ensure potential costs.

7) Revenue Use (Section 1202-rr(9))

  • All revenues from the occupancy tax must be deposited into Lancaster’s general fund and may be used for any lawful purpose.

8) Duration of Local Enactment (Section 1202-rr(10))

  • Local enactments imposing the tax may be for up to three years from the date of enactment.
  • Local laws may be renewed or extended after expiration pursuant to this mechanism.

9) General Provisions (Section 1202-rr(11))

  • If any provision is held invalid, the remainder remains in effect.

Affected Entities and Stakeholders

  • Primary: Town of Lancaster (authorized to enact local occupancy tax provisions)
  • Hotels/Motels in Lancaster: Collect and remit the tax; may pass tax burden to occupants
  • Hotel/Motel Guests: Potentially pay up to 3% of the per diem rate, subject to exemptions
  • Permanent Residents: Exempt from the tax after 90 consecutive days of lodging
  • Tax Authorities: Lancaster’s chief fiscal officer (administration and enforcement)
  • Legal/Judicial: Provisions for challenges under Article 78 of CPLR

Procedural and Timeline Aspects

  • Effective Date: Immediate upon enactment
  • Expiration/Sunset: 12/31/2028 unless renewed or extended
  • Review Window: 30-day window for Article 78 challenges after notice of final tax determination
  • Authority Duration: Each local tax enactment under this section can run up to 3 years, with possible renewals

Notes for Readers

  • This bill does not create a statewide occupancy tax; it delegates authority to the Town of Lancaster to impose a local tax up to 3% on overnight lodging, with specific exemptions and administrative rules.
  • The framework includes typical collection mechanics (pass-through to occupants or through owners), administrative oversight, and judicial review provisions.
  • The sunset provision means the authority to impose the tax is temporary unless renewed by future action.

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

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