Authorizes the town of Patterson to impose a hotel and motel tax

Patterson gains hotel tax option

This law lets Patterson adopt a local hotel tax of up to 5% of each room’s daily rental rate. The tax requires a town local law and is added to any state taxes on the stay. It covers hotels, motels, and paid overnight lodging such as bed-and-breakfasts. People occupying a room for at least 90 consecutive days are exempt. Transactions exempt under New York tax law are also excluded, including qualifying government and nonprofit transactions. The town can require lodging operators or rent recipients to collect and pay the tax. Local law sets return and payment schedules, which can be monthly, shorter, or longer. Collectors have the same payment rights as for rent; the town’s chief fiscal officer must join tax collection lawsuits. Court challenges to final tax decisions, including refund claims, must begin within 30 days after notice. These challenges require a court-approved deposit or bond covering the tax, interest, penalties, and costs. Additional tax assessments generally must occur within three years after a return is filed. That limit does not apply to willfully false or fraudulent returns, or when a required return is not filed. Revenue goes to Patterson’s general fund for any lawful purpose. The authority expires two years after this law takes effect.