Franklin County has been one of only two counties in New York State that does not have a so-called bed tax, a levy charged by local governments on hotel stays. Now, after nearly five years of effort, Franklin County will soon be able to implement a bed tax.
After several losses, this year New York’s legislature approved and Governor Andrew Cuomo signed legislation allowing the northern New York county to create the local fee.
Franklin County officials plan to hold a public hearing next week to get public input on the new local law. Board of Legislators Chair Democrat Billy Jones says it’s part of the formalities to complete implementation. “We formed a bed tax committee years ago. We talked to people from Clinton County and Essex County where this law has worked extremely well. And then we held informational meetings throughout the county. But after the governor signs it you have to go through the process of actually making the law a law. We think it will properly fund our tourism and marketing efforts, which in turn will generate more sales tax, which in turn will help the property tax owners in the long run.”
It’s anticipated that the new tax will generate between $300,000 and $500,000 dedicated to tourism marketing. Malone Village trustee Hugh Hill is also the executive director of the Chamber of Commerce. He calls the five-percent occupancy tax an economic development issue. “Currently marketing money comes from property tax levies. Well no longer. It will come from visitors to the county. So this legislation when finally approved and collections begin will finally put us on even footing with nearly every other county in New York State and that’s a relief to the property tax payers who currently fund, inadequately I might say, tourism promotion efforts in Franklin County. We’re going to create a secure stream of money that’s coming from visitors to the area like every other area and professionally market Franklin County for the first time effectively in history.”
Franklin County Board of Legislators Minority Leader Republican Paul Maroun expects several items to be raised during the upcoming public hearing. “We have to give all the motel owners and hotel owners in the county time to adjust their sales tax implementation into their computer systems or into their manual systems, however they do it. We also have to make sure that the public understands that if you own a primary home and you rent it out, if you rent it for one day or one year, there’s no tax on that. If you have a second home and you rent it out for thirty days or less you would be subject to the tax. If it’s over thirty days you would not be subject to the tax. I think that’s going to be one of the major discussions at the public hearing.”
The Lake Placid-based Regional Office of Sustainable Tourism has been contracted to market Franklin County. Spokesperson Kim Reilly says the county-wide bed tax will allow them to develop a multi-year tourism marketing program. “What’s great about the new occupancy tax, once it gets implemented, is that it’s funded by visitors allowing us to develop and implement that multi-year tourism program. We’re going to see a great uptick and eventually this will drive new sales tax revenue for Franklin County.”
Officials hope to implement the tax by November 1st.
The public hearing on formulating the local bed tax law is scheduled for 11 a.m. Thursday September 3 at the County Courthouse in Malone.
