Legislature Approves Hotel, Motel, & Short-Term Rental Occupancy Tax Increase

Additional Revenues Will Help Fund Housing and Transit, as Proposed by the County Executive for the 2024 Budget

Last evening in a special session, the Ulster County Legislature approved a local law increasing the occupancy tax on hotels, motels, and short-term rentals from two percent to four percent, the last budget-related item included in County Executive Metzger's 2024 Executive Budget, which dedicates half of the new revenue from the increased tax to housing and public transportation. In 2022, the occupancy tax raised over $3 million, and the 2024 Ulster County Adopted Budget projects over $6 million in revenue from the increased tax. The Legislature first made a Home Rule Request to the State for an occupancy tax increase to four percent last June, in a resolution sponsored by Legislator Abe Uchitelle. This tax had not been raised since it was first instituted in 1991, and at two percent was far lower than neighboring counties, which have an occupancy tax rate of 5%.

The 2024 Adopted Budget will dedicate 25 percent of the revenue from the occupancy tax to fund the UCAT public transportation system and 25 percent to support the Housing Action Fund, with the remaining 50% supporting the County’s General Fund to lessen the burden on County taxpayers.

https://ulstercountyny.gov/news/executive/ulster-county-legislature-approves-hotel-motel-short-term-rental-occupancy-tax