Authorizes the village of Croton-on-Hudson to impose a hotel and motel tax

Croton-on-Hudson can tax overnight lodging

The law lets Croton-on-Hudson adopt a local hotel tax capped at 3% of each room’s daily rental price. The tax applies only after the village adopts a local law and adds to other applicable taxes. It covers overnight stays at hotels, motels, bed-and-breakfasts, and tourist facilities. People occupying rooms for at least 90 consecutive days are exempt. Transactions with New York State, its public bodies, and the federal government are also exempt. Qualifying religious, charitable, and educational organizations are exempt, but organizations mainly operating a business for profit are not. The village can require lodging owners or rent recipients to collect and pay the tax, with collection rights like rent. It can require monthly returns and payments or set another schedule, and its chief fiscal officer can administer the tax. All revenue goes to the village’s general fund for any lawful village purpose. Taxpayers have 30 days after notice of a final tax decision or refund denial to seek court review. Tax challenges carry tax-deposit and bond requirements; refund appeals require a bond covering possible court costs. Additional tax assessments generally must occur within three years after a return is filed. That limit does not apply to willful fraud or missing returns. The authority took effect immediately upon enactment and expires two years after enactment.