Relates to the allocation and use of the revenues raised from the imposition of hotel and motel taxes in Cortland county; provides that a certain percentage of such net annual occupancy receipts be utilized to support and enhance tourism and tourist activity; provides that the remaining portion be used for any lawful county purpose related to economic development.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A11466
SPONSOR: Rules (Kelles) TITLE OF BILL:
An act to amend the tax law, in relation to the allocation and use of
revenues raised from the imposition of hotel and motel taxes in Cortland
county
PURPOSE OR GENERAL IDEA OF BILL:
to allow Cortland county more flexibility in distributing revenues from
its 3% room occupancy tax
SUMMARY OF PROVISIONS:
Sec. 1 - amends subdivision 9 of section 1202-g of the tax law to
provide that Cortland county occupancy tax revenues, in addition to
being allocated for tourist and convention development, may also be used
for any other lawful purpose of the county related to economic develop-
ment, provided at least 75% is used for tourism development;
Sec. 2 - effective date.
JUSTIFICATION:
New York State Tax Law, § 1202-g (1) and (9) presently authorizes Cort-
land County to adopt and amend local laws, ordinances, or resolutions
imposing an occupancy tax of up to 5%, and also directs that all reven-
ues be allocated for tourism development, including advertising and
marketing of tourist attractions. Economic development is closely
intertwined with tourism and vital to the long-term sustainability and
growth of the County's economy. Cortland county has requested this
legislation expanding the authorized use of occupancy tax funds to
include other economic development purposes to allow the County greater
flexibility to support projects that support local business development,
hospitality sector growth, workforce creation and other related initi-
atives that directly or indirectly benefit the County's economy, includ-
ing tourism, as a whole.
PRIOR LEGISLATIVE HISTORY:
none
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
none
EFFECTIVE DATE:
immediately.
STATE OF NEW YORK
________________________________________________________________________
11466
IN ASSEMBLY
May 20, 2026
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Kelles) --
read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the allocation and use of
revenues raised from the imposition of hotel and motel taxes in Cort-
land county
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 9 of section 1202-g of the tax law, as added
2 by chapter 341 of the laws of 1987, is amended to read as follows:
3 (9) All revenues resulting from the imposition of the tax under the
4 local laws shall be paid into the treasury of Cortland county and shall
5 be credited to and deposited [in the general fund of the county, there-
6 after] into a reserve account to be allocated for tourist and convention
7 development and any other lawful purpose of the county related to
8 economic development as set forth herein; provided, however, that such
9 local laws shall provide that the county shall be authorized to retain
10 up to a maximum of ten percent of such revenue to defer the necessary
11 expenses of the county in administering such tax. The revenue derived
12 from the tax, after deducting the amount provided for administering such
13 tax, as so authorized by local law, shall be allocated [to enhance the
14 general economy of Cortland county, its cities, towns, and villages,
15 through promotion of tourist activities, conventions, trade shows,
16 special events, and other directly related and supporting activities] as
17 follows: at least seventy-five percent of up to the first one million
18 dollars of net annual occupancy receipts shall be utilized to support
19 and enhance the planning, promotion, marketing and growth of tourism,
20 tourist activities and attractions, and tourist product development, and
21 the remaining net occupancy tax proceeds shall be designated for any
22 lawful county purpose related to economic development.
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15946-02-6
