Authorizes the town of Montgomery to impose a hotel and motel tax; and providing for the repeal of such provisions upon expiration thereof

Montgomery gains a hotel tax option

The Town of Montgomery in Orange County can adopt a local lodging tax, in addition to other taxes. The town must pass a local law before charging it. The rate cannot exceed 5% of each room’s daily rent. Hotels, motels, bed-and-breakfasts, and other tourist lodging are covered. Guests occupying a room for at least 90 consecutive days are exempt. Exemptions also cover specified government transactions and qualifying religious, charitable, educational, and child- or animal-cruelty prevention organizations. Qualifying organizations must meet limits on private earnings and lobbying; operating mainly for profit does not qualify. The town’s chief financial officer administers the tax. Local rules can require lodging operators to collect and pay it, with monthly or other scheduled returns and payments. Operators can collect the tax like rent, but must include the chief financial officer in collection lawsuits. Court challenges to final tax decisions or refund denials must begin within 30 days after notice. They require either depositing the tax and providing a surety bond, or an alternative bond covering the determination plus costs. Tax assessments generally must occur within three years after a return is filed. There is no time limit for willfully false or fraudulent returns, or when no return is filed. Revenue goes to the town’s general fund for any lawful town purpose. The act takes effect immediately, and the tax authorization expires two years later.