Irwin Bay Cottages owner Julie Holland addresses Chautauqua County Legislature (March 22, 2023)
The Chautauqua County Legislature has rejected a proposal to increase the occupancy tax rate.
Chautauqua County Executive PJ Wendel had proposed, as part of the occupancy tax renewal with New York State, to raise the current rate from 5% to 8%.
His proposal included dedicating the additional 3% in tax income toward funding waterways in the county. Currently, of the 5% collected, 60% is used to promote tourism with 40% going toward enhancing waterways.
A handful of lodging-related business owners spoke out against increasing the tax, including Maple Springs Lakeside Inn owner Rosary Stage who said she owns lakefront property and is just as concerned about Chautauqua Lake as anyone, “But I think at same, increasing the occupancy tax is not the solution to our problems. We have millions of unspent COVID money. Please use that. Our guests do know when our taxes increase. When they examine their bill at the end of their stay we get constant feedback about the amount of tax that has to be paid. When they compare the total bill to other vacation areas, we will become more uncompetitive and crossed off of future vacation lists.”
Irwin Bay Cottages owner Julie Holland questioned how the additional funds would be used, “Will they be used for yet another study, growing administrative costs that are going to entities already supported with county funds, or will they be used for definitive actions that will enhance our lakes and waterways? Funding for lakes and waterways is a broad term.”
A motion by Legislator Bob Scudder amending the resolution to remove the 3% increase to the rate was approved unanimously by the 14 legislators present.
Legislator Susan Parker said facts were lacking in the proposal received nine days prior to the meeting about the need for the increase, “Which would give Chautauqua County the highest occupancy tax in New York State. A study of the benefits versus the cost was not included, nor was a public discussion of the inclusion of stakeholders in consideration of this increase, nor any plans for use of the funds. A lot of questions remain.”
The amended resolution requesting a renewal of the 5% occupancy tax also passed unanimously.
County Executive Wendel said he wasn’t aware any legislators had issue with the resolution until just before the meeting, “I just wished somebody would have reached out.. I did hear from residents, who were here, this week, here tonight, and spoke tonight, and they called me. I said in my speech, I have an open door. People can feel free to call me, email me. Mr. Patel (hotel owner) has on several occasions. We’ve talked. I haven’t heard anything from anybody on whether this was supported or not supported.”
Wendel said while the current 5% rate doesn’t expire until November, the Legislature needed to submit a renewal request before the end of the state legislative session in June. He said if the proposal had been adopted, the new rate wouldn’t have gone into effect until January 1, 2024.
Wendel added that he will be “going back to the drawing board” in terms of looking at ways to fund Chautauqua Lake and county waterway needs.
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