The Albany County Legislature this week approved a hotel occupancy tax hike, along party lines.
With all members of the Democratic majority voting in favor and Republicans against it, the county's occupancy tax will increase from 6% to 6.5%.
The tax is paid by visitors who choose to stay in Albany County hotels and motels.
Democratic 1st District County Legislator Carolyn McLaughlin, also a candidate for mayor of Albany, says “a lot of thought” went into the increase. She says the added revenue will help provide opportunities for funding programs and services the county provides.
"I don't think that it's going to have a negative impact any more than what we're already seeing as it relates to taxes in Albany County. I don't see it as a deterrent," said McLaughlin. "I don't think that we're going to see a downturn in visitors to Albany County as a result of it. I think people are willing to pay for what they what they get. And I think that we, we here in Albany County, offer what people are looking for when they come to this area to visit."
Discover Albany President and CEO Jill Delaney says last year, tourists spent $1 billion in Albany County, and $2.1 billion in the combined Capital-Saratoga Region, a 3.2% increase over the previous year.
"There is no data that suggests that the half percent increase is going to actually prevent people from booking in Albany County or choosing to go over the county line to another county. But you know, certainly it's disappointing that it doesn't go to tourism. But I understand the county wanted to add this for economic development, and that's their prerogative," Delaney said, noting that tourism generated $125 million in state and local taxes last year.
County Republicans who voted against the increase believe the tax will have a negative effect on tourism.
28th district Republican legislator Mark Grimm says in addition to paying state and local sales tax, lodgers in the county will get slapped with a more expensive hotel tax.
"I estimated based on the 2025 executive budget, which indicates they expect about $10.4 million for the hotel tax,' said Grimm. "That means a half a percent would be $800,000 a year. So, and the legislation is for a three year period. So that's a $2.4 million tax hike that didn't have to happen. There's so many other alternatives for funding economic development, which is they say is the purpose. But the odd thing is, they say they want to increase economic development, but they're charging visitors more when for a hotel room when they get here."
Grimm argues there are several alternative funding sources the county could have tapped instead of hiking the hotel tax.
"There's a fund balance left over at the end of 2023 that was $139 million. We get two and a half million dollars a year from Rivers Casino money just because we're a neighboring county. Of course, we have 60 million from ARPA, American Rescue Plan money. So there's plenty other sources of money that should have been used rather than raising taxes, because that's taking money out of the pockets of people and putting it into the hands of government, and we shouldn't do that unless we really have to, and we didn't really have to," Grimm said.
Local Law J passed 26-9. It takes effect January 1st.
