Authorizes the city of Mount Vernon to impose a hotel and motel tax

Mount Vernon can tax short stays

Mount Vernon can adopt a local lodging tax of up to 5.875% of each room’s daily rental price. This tax is added to any other applicable taxes. It covers hotels, motels, bed-and-breakfasts, short-term and vacation rentals, Airbnbs, and other paid lodging for temporary stays. Guests occupying rooms for at least 30 consecutive days are exempt. Exempt transactions also include New York State and its public entities, and the federal government where immune from taxation. Qualifying religious, charitable, educational, and child- or animal-protection organizations are also exempt. These organizations cannot distribute net earnings privately or devote substantial activity to lobbying; primarily for-profit businesses do not qualify. City rules can require lodging owners or rent recipients to collect and pay the tax, with monthly or other filing schedules. They can collect it like rent, but must include the city’s chief fiscal officer in any collection lawsuit. Final tax decisions and denied refunds for wrongly collected tax can be challenged in court within 30 days after notice. Filing requires a bond or similar guarantee covering court costs. Additional tax assessments generally must occur within two years after a return is filed; this limit does not apply without a return. Revenue goes to the city’s general fund, first covering tax administration, then city uses chosen by the City Council. Each local tax law can last up to two years, and the city can adopt another when it expires. The state law took effect immediately and applies to contracts entered into on or after that date. The authority expires December 31, 2027.