Hotels Magazine: BRIEFS: NYC CITY COUNCIL CONSIDERS TAX CUT; CHOICE, CIRCUS CIRCUS AGREEMENT

April 26, 2022

 

NYC city council considers tax cut: The New York City Council is reportedly planning to dramatically cut the local hotel tax to encourage a faster recovery of the city’s US$100 billion tourism market. The Hotel Association of New York City has been urging Mayor Eric Adams and the council to bring down the occupancy tax rate on hotel stays to 2.875% from the existing 5.875%. The tax is likely to generate US$25 million in revenue for the fiscal year ending June 30, as per the mayor’s preliminary budget plan. However, studies have revealed that the city’s tourism market is not expected to bounce back fully to 2019 levels until 2026. A study by the Hotel Association found that lowering of hotel occupancy tax for two years would enable hotels to increase occupancy rates and generate additional revenue.