Concerns Raised Over Changes Proposed In Occupancy Tax
County attorney Patrick Slagle, right, speaks at the legislature’s Administrative Services Committee meeting.
MAYVILLE — The modified legislation regarding Chautauqua County’s occupancy tax has raised some concerns.
During the legislature’s Administrative Services Committee meeting, county attorney Patrick Slagle presented to the committee a new resolution amending the law relating to increasing motel/hotel taxes in the county.
In March, the legislature filed a request with the state to continue to have a 5% occupancy tax. Counties are permitted to have a 3% occupancy tax, but need state approval to increase that amount. The county has a 5% occupancy tax, which is collected from short term renters in Chautauqua County when they use hotels, motels or short-term rental properties, including Airbnbs and bread-and-breakfast locations.
Slagle said the March resolution passed by the county was modified at the state level. The new legislation calls on the county to give a certain percentage collected “to the official tourism promotion agency of the county for marketing, advertising and promoting the county.” That would be the Chautauqua County Visitor’s Bureau.
“The explanation that was put forth from the Senate was that since this money is being collected from the hotels and motels, a portion of it should really make sure it’s focused on promoting their industry,” Slagle said.
In March, a number of motel owners complained at the county Legislature meeting that their customers pay the occupancy tax, but the motels don’t benefit from it.
Another change is that the county must put a certain percentage toward “activities that control, treat, and/or remove invasive or nuisance submerged aquatic vegetation, reduce harmful algae blooms, or provide shoreline clean up.”
The last change is the occupancy tax legislation would expire in 2025, instead of 2026.
Legislator Susan Parker, D-Fredonia, opposed the first two changes. “I think the legislature may well consider the suggestions by its state representatives, but wishes to maintain its discretionary authority to expend bed tax revenues in a manner that shall determine as being in the best interests of the county,” she said.
She argued that local officials shouldn’t give up their authority and allow the state to make decisions. “Part of what legislators do is vote for budgetary things and if there is some need to change something, why not make changing it at a local law level?” she said.
Parker proposed to modify the resolution at Monday’s Administrative Services meeting, but didn’t receive any support from other committee members.
Slagle expressed concerns that if the county modifies what is already been submitted to the state senate and assembly, if there would be time to accept a modified resolution since the state’s session ends in June.
Because the Administrative Services Committee didn’t modify the resolution, Parker voted against it. The other four committee members voted in favor of it.
The resolution also appeared before the Audit and Control Committee on Thursday.
At that meeting, Slagle said he had talked to state Assemblyman Andrew Goodell and was told the county Legislature must agree to the legislation being considered at the state level. If the county modifies it, new legislation would need to be introduced. “It becomes a timing issue at this point. Their session ends in early June. There’s just, frankly, not enough time to change this,” he said.
The risk, Slage said, is the county could lose the ability to keep the occupancy tax at 5%, and it would default to 3%. “My advice, as county attorney, is for you to support this,” he said.
Slagle said Goodell is open to discussing the occupancy tax, once the extension is in place.
Slagle said the county is fairly close to the requested funding level for the Visitor’s Bureau. He said the portion regarding lakes and waterways will need to be adjusted, particularly because the state does not want the money to be used for administration.
Legislator Terry Niebel, R-Sheridan, said the occupancy tax funds the watershed coordinator’s salary and benefits. He’s concerned that salary would now have be paid for with county tax dollars.
Budget Director Kathleen Dennison said she believes there would still be enough revenue from the occupancy tax to pay for the watershed coordinator, because the proposed legislation doesn’t require all money be used for lakes and waterways, only a portion.
Niebel said the occupancy tax needs to continue to fund the watershed coordinator position. “If we can continue to fund that position from the 2% money, I’m in favor of it; if not, I’m not,” he said.
The Audit and Control Committee approved the resolution unanimously.
The full legislature will vote on it during its meeting Wednesday.






