N.Y.
Tax Law Section 1202-O
Hotel and motel taxes in Suffolk county
(1)
Notwithstanding any other provisions of law to the contrary, the county of Suffolk is hereby authorized and empowered to adopt and amend local laws imposing in such county a tax, in addition to any other tax authorized and imposed pursuant to this article, such as the legislature has or would have the power and authority to impose upon persons occupying hotel or motel rooms in such county. For the purposes of this section, (i) “hotel” or “motel” shall mean and include any facility providing lodging on an overnight basis and shall include those facilities designated and commonly known as “bed and breakfast”, inns, cabins, cottages, campgrounds, tourist homes and convention centers, and(ii)
“cultural programs and activities” shall mean events, forums, or actions of benefit to the general public that are thematically related to art, music, performing arts or music, or historic or environmental preservation or education. The rates of such tax shall not exceed five and one-half percent of the per diem rental rate for each room, provided, however, that such tax shall not be applicable to a permanent resident of such hotel or motel. For the purposes of this section the term “permanent resident” shall mean a person occupying any room or rooms in a hotel or motel for at least thirty consecutive days.(2)
Such tax may be collected and administered by the county treasurer or other fiscal officers of Suffolk county by such means and in such manner as other taxes which are now collected and administered by such officers or as otherwise may be provided by such local law.(3)
Such local laws may provide that any tax imposed shall be paid by the person liable therefor to the owner of the hotel or motel room occupied or to the person entitled to be paid the rent or charge for the hotel or motel room occupied for and on account of the county of Suffolk imposing the tax and that such owner or person entitled to be paid the rent or charge shall be liable for the collection and payment of the tax; and that such owner or person entitled to be paid the rent or charge shall have the same right in respect to collecting the tax from the person occupying the hotel or motel room, or in respect to nonpayment of the tax by the person occupying the hotel or motel room, as if the tax were a part of the rent or charge and payable at the same time as the rent or charge; provided, however, that the county treasurer or other fiscal officers of the county, specified in such local law, shall be joined as a party in any action or proceeding brought to collect the tax by the owner or by the person entitled to be paid the rent or charge.(4)
Such local law may provide for the filing of returns and the payment of the tax on a monthly basis or on the basis of any longer period of time.(5)
Such local law shall provide for the county of Suffolk to enter into a contract with a tourism promotion agency to administer programs designed to develop, encourage, solicit and promote convention business and tourism within the county. The promotion of convention business and tourism shall include any service, function or activity, whether or not performed, sponsored or advertised by the tourism promotion agency with the intent to attract transient guests to the county.(6)
Such local law shall provide that all revenues resulting from the imposition of the tax payable hereunder shall be paid into the treasury of the county of Suffolk and shall be distributed within thirty days of receipt by the county proportional to the annual amount due under the following formula: (a) six million dollars per fiscal year, shall be delivered to a not-for-profit tourism promotion agency that has experience with tourism promotion in the Long Island Region which the county of Suffolk contracts with pursuant to the provisions of subdivision five of this section; (b) two million two hundred fifty thousand dollars per fiscal year shall be utilized by the county of Suffolk in support of cultural programs and activities relevant to the continuation and enhancement of the tourism industry, provided that one million dollars per fiscal year shall be utilized in support of cultural programs and activities in the towns of Babylon, Brookhaven, Huntington, Islip and Smithtown; one million dollars per fiscal year shall be utilized in support of cultural programs and activities in the towns of Riverhead, Southold, Shelter Island, Southampton and East Hampton and two hundred fifty thousand dollars per fiscal year shall fund cultural grant programs administered by the county department of economic development and planning; (c) one million two hundred fifty thousand dollars per fiscal year shall be utilized by the county of Suffolk for the support of any museum accredited by the American Association of Museums, which is located in such county’s first dedicated park and is also listed on the National Register of Historic Places; (d) one million dollars per fiscal year shall be utilized by the county of Suffolk for the support of other museums, and historical societies, historic residences and historic birthplaces; (d-1) two hundred fifty thousand dollars per fiscal year shall be utilized by the county of Suffolk for program support of a not-for-profit museum organization that manages a National Register of Historic Places site in Suffolk county that has been named a National Treasure, is part of a National Recreational Trail and is a New York state historic site; (e) two million five hundred thousand dollars per fiscal year shall be utilized by the county of Suffolk for the care, maintenance, and interpretation for the general public of the historic structures, sites and unique natural areas that are managed by the Suffolk county department of parks and recreation for sites and activities that are open to tourists on a regular and predictable basis; (f) two hundred fifty thousand dollars per fiscal year shall be utilized by the county of Suffolk for the promotion of the county of Suffolk as a film friendly location through the county department of economic development and planning; (f-1) three million two hundred fifty thousand dollars per fiscal year shall be deposited into the general fund of the county of Suffolk to be utilized for general park purposes; (g) five hundred thousand dollars per fiscal year shall be utilized by the county of Suffolk for regional marketing and promotion provided that two hundred fifty thousand dollars is delivered to a Long Island regional commercial airport, designated as an official metro airport that does not operate in the same airspace as airports located in New York city and two hundred fifty thousand dollars to an east end tourism agency which the county of Suffolk contracts with to administer programs designed to develop, encourage, solicit and enhance business and tourism on the east end of the county of Suffolk; (h) all remaining revenue collected by the county of Suffolk shall be deposited into a special fund to be designated as the “Suffolk County Infrastructure Fund,” to be created by said county therefore separate and apart from any other funds and accounts of the county. Moneys in such fund shall be deposited and secured in the manner provided by General Municipal Law § 10 (Deposits of public money)section ten of the general municipal law, and, pending expenditure, may be invested in the manner provided by General Municipal Law § 10 (Deposits of public money)section ten of the general municipal law. Any interest earned or capital gain realized on monies deposited shall accrue to and become part of the fund. In no event shall monies deposited in the fund be transferred to any other fund except as set forth in this subdivision. Monies in said fund may be appropriated from and transferred or expended in any fiscal year for the planning, design, and construction of a convention center and surrounding infrastructure, including but not limited to, utilities, underground infrastructure, wastewater improvements, parking facilities, traffic improvements, pedestrian access and multi-modal projects, community impact projects, transportation facilities and related improvements and to repay any indebtedness or obligations incurred, pursuant to local finance law, for these purposes; and(i)
the funding amounts identified in paragraphs (a) through (g) of this subdivision shall be increased by one percent over the prior fiscal years’ funding each fiscal year. In the event that revenues resulting from the imposition of the tax payable hereunder are insufficient to fund according to the amounts identified in paragraphs (a) through (g) of this subdivision, the county of Suffolk shall utilize funds from the Suffolk County Infrastructure Fund to fund according to the amounts identified in paragraphs (a) through (g) of this subdivision, however, if the funds from the Suffolk County Infrastructure Fund are still insufficient to provide funding according to paragraphs (a) through (g), distributions set forth in paragraphs (a) through (g) of this subdivision shall be reduced on a proportional basis. Schedules of availability of all historic and cultural activities and events funded from any part of these revenues shall be provided to the aforementioned tourism promotion agency which is contracted with by the county of Suffolk so as to enhance tourism promotion and tourist visitation. Annually, the department of economic development and planning of the county of Suffolk shall submit, to the county executive and the county legislature of such county, a report on such department’s progress on the promotion of the county of Suffolk as a film friendly location, and annual statistics of the revenue generated pursuant to paragraph (f) of this subdivision.(7)
Such local law shall provide for the imposition of a hotel or motel tax in perpetuity.(8)
This section shall not authorize the imposition of such tax upon any transaction, by or with any of the following in accordance with § 1230 (Exempt organizations)section twelve hundred thirty of this chapter: (a) The state of New York, or any public corporation (including a public corporation created pursuant to agreement or compact with another state or the dominion of Canada), improvement district or other political subdivision of the state; (b) The United States of America, insofar as it is immune from taxation; (c) Any corporation or association, or trust, or community chest, fund or foundation organized and operated exclusively for religious, charitable or educational purposes, or for the prevention of cruelty to children or animals, and no part of the net earnings of which inures to the benefit of any private shareholder or individual and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation; provided, however, that nothing in this paragraph shall include an organization operated for the primary purpose of carrying on a trade or business for profit, whether or not all of its profits are payable to one or more organizations described in this paragraph.(9)
Any final determination of the amount of any tax payable hereunder shall be reviewable for error, illegality or unconstitutionality or any other reason whatsoever by a proceeding under article seventy-eight of the civil practice law and rules if application therefor is made to the supreme court within thirty days after the giving of the notice of such final determination, provided, however, that any such proceeding under article seventy-eight of the civil practice law and rules shall not be instituted unless: (a) The amount of any tax sought to be reviewed, with such interest and penalties thereon as may be provided for by local law shall be first deposited and there is filed an undertaking, issued by a surety company authorized to transact business in this state and approved by the superintendent of financial services of this state as to solvency and responsibility, in such amount as a justice of the supreme court shall approve to the effect that if such proceeding be dismissed or the tax confirmed the petitioner will pay all costs and charges which may accrue in the prosecution of such proceeding; or (b) At the option of the petitioner such undertaking may be in a sum sufficient to cover the taxes, interest and penalties stated in such determination plus the costs and charges which may accrue against it in the prosecution of the proceeding, in which event the petitioner shall not be required to pay such taxes, interest or penalties as a condition precedent to the application.(10)
Where any tax imposed hereunder shall have been erroneously, illegally or unconstitutionally collected and application for the refund thereof duly made to the proper fiscal officer or officers, and such officer or officers shall have made a determination denying such refund, such determination shall be reviewable by a proceeding under article seventy-eight of the civil practice law and rules, provided, however, that such proceeding is instituted within thirty days after the giving of the notice of such denial, that a final determination of tax due was not previously made, and that an undertaking is filed with the proper fiscal officer or officers in such amount and with such sureties as a justice of the supreme court shall approve to the effect that if such proceeding be dismissed or the tax confirmed, the petitioner will pay all costs and charges which may accrue in the prosecution of such proceeding.(11)
Except in the case of wilfully false or fraudulent return with intent to evade the tax, no assessment of additional tax shall be made after the expiration of more than three years from the date of the filing of a return, provided, however, that where no return has been filed as provided by law the tax may be assessed at any time.(12)
If any provision of this section or the application thereof to any person or circumstance shall be held invalid, the remainder of this section and the application of such provision to other persons or circumstances shall not be affected thereby. * NB There are 3 §1202-o’s
Source:
Section 1202-O — Hotel and motel taxes in Suffolk county, https://www.nysenate.gov/legislation/laws/TAX/1202-O (updated Jan. 6, 2023; accessed May 11, 2024).
