New York City considers hotel tax hike

New York /
May.May 26, 2011 09:38 AM

Tourists may soon have to pay a little extra to stay in New York City hotels as the city is considering a hike in hotel taxes by 5.8 or 6 percent in order to raise $30 million for cultural institutions, fire companies and teacher jobs in the next fiscal year ending June 2012, according to the New York Daily News. That means a tiny increase to a hotel guest’s overnight bill– about a 60-cent hike on $300-per-night room.

“That’s nary a penny,” said Lew Fidler, a Brooklyn Councilman and avid supporter of the tax proposal. “Not a penny of this would come out of the pocket of New Yorkers,” he continued.

However, hotel proprietors say any increase to taxes will deter visitors and reduce tourism. “It has been proven time and time again,” said Joseph Spinnato, president of the Hotel Association of New York.

Either way, the proposal would require a shift in state legislation. At the moment, City Council can increase hotel taxes but the money raised by that tax must exclusively serve the city’s tourism agency.

While Mayor Michael Bloomberg has opposed raising taxes during this budget round, Cultural Affairs Commissioner Kate Levin confirmed there had been discussions about the hotel tax when asked at a budget hearing on Monday. [NYDN]


Related Articles

arrow_forward_ios
Capstone Equities' Joshua Zamir and Renwick Hotel at 118 East 40th Street (TripAdvisor)
New owner Capstone revives Midtown’s Renwick Hotel
New owner Capstone revives Midtown’s Renwick Hotel
Jonathan Goldstein, CEO, Cain International and 356 West 58th Street (Cain International, Google Maps)
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Strong month for US economy, but hospitality hiring slows
Jobs report shows more workers returning to office
Jobs report shows more workers returning to office
Hotel Trades Council's Rich Maroko and Mayor Eric Adams (Getty, iStock)
Hotel bill is union’s latest effort to boost market share
Hotel bill is union’s latest effort to boost market share
Times Square Sheraton Hotel and MCR CEO Tyler Morse (Google Maps, Getty)
Times Square Sheraton loss $33M worse than reported
Times Square Sheraton loss $33M worse than reported
Brian Chesky, co-founder and CEO, Airbnb (Getty Images, iStock)
Airbnb’s losses narrow as bookings hit all-time high
Airbnb’s losses narrow as bookings hit all-time high
Sonesta's John Murray along with the Benjamin Hotel (front left), the Shelburne Hotel & Suites (front right), the Fifty Hotel & Suites (back left) and the Garden Suites Hotel (back right) (Google Maps, Sonesta)
Midtown hotel portfolio sale suggests big value drop
Midtown hotel portfolio sale suggests big value drop
Stomp Capital founder Richard Fertig and 1655 County Road 39 in Southampton (Loopnet, Richard Fertig)
Southampton hotel trades for $14M ahead of revamp
Southampton hotel trades for $14M ahead of revamp
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...