Authorizes the town of Patterson to impose a hotel and motel tax

2025 Regular Session Introduced by Dave McDonough and 2 co-sponsors

Patterson may levy a hotel and motel occupancy tax on overnight guests; revenues fund local municipal needs, with rate and exemptions defined in S7078A.

SUBSTITUTED BY S7078A

Overview

Purpose: Authorizes the town of Patterson to impose a hotel and motel occupancy tax on guests staying in hotels and motels within the town.

Status: The Assembly bill A 7854 has been substituted by Senate Bill S 7078A. The latest official language and provisions are currently in the Senate substitute (S7078A), which will govern if enacted.

Related: Companion bill S7078 (and its companion references). The bill’s progress is tied to the Senate substitute and its language.

What the bill would authorize

Authority to Tax: Grants Patterson the legal authority to impose a hotel and motel occupancy tax on overnight lodging within town boundaries.

Administration and Collection: The substitute language would set out how the tax is collected (e.g., who administers and collects the tax) and how revenues are accounted for and reported. The exact administrative framework (town-led vs. state-administered, reporting requirements, etc.) is defined in the substitute language.

Use of Revenues: Revenues from the tax would be available to fund authorized municipal purposes. While the specific uses are not detailed in the materials provided, hotel/motel taxes are commonly dedicated to tourism promotion, infrastructure, or general municipal needs. The final allocation and any limits or restrictions would be specified in the substitute bill’s text.

Rate and Exemptions: The substitute would typically specify the tax rate, any applicable exemptions, and potential exemptions (e.g., government use, certain nonprofit stays, or short-term exemptions). The current materials do not provide those specifics; they would be in S7078A.

Who would be affected

Primary: Guests staying in Patterson hotels and motels (occupants of lodging establishments within the town).

Local Government: Town of Patterson (budgetary and administrative impact, including the potential to earmark funds for specific projects or services).

Local Hospitality Industry: Hotels and motels operating in Patterson would collect/remit the tax under the approved framework.

Residents and Visitors: May experience changes in lodging costs proportionate to the tax rate (subject to exemptions and rate provisions).

Procedural and timeline aspects

Introduced: April 11, 2025.

Initial actions: Referred to Ways and Means; amended and recomitted on April 17, 2025 (A 7854A print and amendments).

Early 2025 progress: Reported to Rules and referred to Rules; additional rulings and calendar actions noted.

Substitution: On June 16, 2025, A 7854 was substituted by S7078A, and the bill continued under the Senate substitute language.

Status note: The bill’s active provisions and specifics now reside in S7078A; the companion S7078 is listed as related.

Key considerations for readers

Final policy details (tax rate, exemptions, revenue allocation, sunset provisions, and reporting) are determined by the substitute language in S7078A. The assembly version (A 7854) has been superseded by the Senate substitute for the purposes of enactment.

Local impact will depend on how Patterson adopts and implements the tax under the approved framework (if enacted), including potential effects on lodging costs and funding for local initiatives.

For a deeper understanding, review the text of S7078A and any fiscal notes or sponsor memos accompanying the substitute language.

Bill