Authorizes the village of Ellicottville to impose a hotel and motel tax

2025 Regular Session Introduced by George Borrello

Ellicottville can enact a up to 5% hotel/motel tax on lodging with a 30-day residency exemption, collecting to fund local tourism and development for up to three years.

REFERRED TO WAYS AND MEANS

Bill Summary: S 9027 (2025-2026) – Hotel and Motel Tax Authority for Ellicottville

Main purpose and intent

Authorizes the village of Ellicottville, in Cattaraugus County, to adopt local laws imposing a hotel and motel tax on occupants of lodging facilities within the village.

Provides a framework for collection, administration, exemptions, and use of revenues, with a sunset/repeal mechanism tied to expiration of the local authority.

Key provisions and changes

Authority to impose tax: The village may enact local laws imposing a hotel or motel tax on overnight lodging facilities, including traditional hotels, motels, bed and breakfasts, and tourist facilities.

Tax rate: The tax may not exceed 5% of the per diem room rate. Exemption for permanent residents: a person staying in a hotel or motel for at least 30 consecutive days is not subject to the tax.

Administration and collection: The village chief fiscal officer may collect and administer the tax using mechanisms similar to other village taxes. In local law, owners or renters would collect the tax from occupants and remit it to the village; the village chief fiscal officer must be joined as a party in collection actions.

Filing and payment schedule: Local laws may specify monthly or other periodic filing and payment intervals.

Exemptions: The tax cannot be imposed on certain entities and transactions already exempt under state law (e.g., state or federal governments and certain religious/charitable/educational organizations, with caveats about for-profit trade).

Legal remedies and review: Final determinations of tax payable are subject to judicial review under article 78 of the Civil Practice Law and Rules, with specific procedures for deposits or undertakings related to such proceedings.

Refunds: Procedures exist for challenging erroneous, illegal, or unconstitutional tax assessments, including timelines and requirements for undertaking payments.

Revenue use: Revenues must be deposited into Ellicottville’s general fund. The village may use up to 4% of total revenue to cover administration costs; remaining funds can be allocated to community and economic development, planning, and tourism.

Term and renewal: Each local law imposing the tax can be in effect for up to three years. Local laws may be enacted or renewed upon expiration.

Limitations and protections: Provisions ensure that the authorization does not apply to certain entities or transactions and preserves other statutory protections.

Who would be affected

Occupants of hotel and motel rooms in Ellicottville (subject to the 5% cap and the 30-day permanent residency exemption).

Lodging owners or operators, who would collect the tax from guests and remit to the village.

The village government, which would administer, audit, and spend the revenue for local purposes.

Visitors and tourism-related businesses, through potentially higher lodging costs but with funds directed to local development.

Procedural and timeline aspects

Effective date: Immediate upon enactment.

Sunset: The local authorization expires and is deemed repealed on September 1, 2027, unless extended or renewed via new local law.

Legislative progress: Passed by the Senate (May 28, 2026) and referred to Assembly Ways and Means; committee actions and potential Assembly passage would determine final enactment.

Overall, S 9027 provides Ellicottville a limited, time-bound authority to levy a hotel/motel tax to fund local tourism-related development and services, with defined rates, administration, exemptions, and a structured sunset.