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

Highlands can add a hotel tax

The law lets the Town of Highlands, Orange County, add a lodging tax through a local law. The tax is capped at 5% of each room’s daily rental rate, on top of other authorized lodging taxes. It covers hotels, motels, bed-and-breakfasts, and similar places offering nightly lodging. Guests pay this tax only after the town adopts it. Stays of at least 90 consecutive days are exempt. Exemptions also cover New York State, its public bodies, and the federal government where it is immune from taxation. Qualifying religious, charitable, educational, and child- or animal-protection organizations are also exempt. These groups cannot distribute earnings to private individuals or devote a substantial share of their activities to influencing legislation. Businesses mainly operated for profit do not qualify, even when profits support an exempt group. Local rules can require operators or rent collectors to collect and pay the tax and file returns. Filing and payment can be monthly or on another schedule set by the town. Revenue goes into the town’s general fund for any lawful town purpose. Final tax decisions and refund denials can be challenged in court within 30 days after notice. Security requirements apply, including security to pause collection; an allowed security option permits a challenge without prepaying the tax. Additional tax assessments generally must occur within three years after a return is filed. There is no time limit for willful fraud or an unfiled return. The law takes effect immediately, and the tax authority expires two years after that effective date.