BILL NUMBER: S7195

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the chapter 405 of the laws of 2007, amending the tax
law relating to increasing hotel/motel taxes in Chautauqua county, in
relation to extending the expiration of such provisions; and to amend
chapter 335 of the laws of 2023, amending the tax law relating to the
allocation of revenue from the hotel and motel taxes in Chautauqua coun-
ty, in relation to extending the expiration of such provisions

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill continues the 5% hotel/motel tax in Chautauqua County for
another three years; confirms that the bed tax funds are intended to
promote the tourism industry and related economic development; and spec-
ifies that at least one-half of the funds must be used specifically for
tourism marketing and promotion and for the control, treatment, and/or
removal of invasive and nuisancemacrophytes, reduction of harmful algae
blooms, and shoreline cleanup for the lakes of. Chautauqua County.

 
              

SUMMARY OF PROVISIONS:

Section 1 repeals Tax Law section 1202-j (9), which specifies the
current allocation of bed tax funds.

Section 2 rewrites Tax, Law section 1202-j(9) as follows:(a) to provide
that three-fifths of the bed tax funds be deposited into a special tour-
ism and convention fund, and one-half thereof must be allocated to the
official tourism promotion agency for the county for marketing, adver-
tising, and promoting the county, (b)to provide that the remaining funds
be deposited into a special lake management and enhancement fund, with
at least one-half thereof used for the control, treatment, and/or
removal of invasive and nuisance macrophytes, reduction of harmful algae
blooms, and shoreline cleanup for the lakes of Chautauqua County, (c) to
authorize the county to continue to retain up to 10% of the bed tax
revenues to defer expenses incurred by the county in administering such
bed tax and such programs, and (d) authorize the county, as a condition
of receiving funding, require recipients of such funding to meet speci-
fied performance requirements.

Section 3 makes the same changes as specified in section 2.

Section 4 extends the effective date of the bed tax from November 30,
2025, to November 30, 2027.

Section 5 provides that sections 1 and 2 shall take effect on December
1, 2025, and continue thereafter until November 30, 2027, at which time
section 3 shall take effect.

 
JUSTIFICATION:

The bed tax in Chautauqua County has always been` designated as a fund-
ing mechanism to promote tourism, special events, and related economic
development initiatives. In 1989, Chautauqua County was authorized to
impose a-3% bed tax, with all the funds deposited into a special tourism
and convention fund. In 2007, Chautauqua County was authorized to
increase the bed tax to 5%, with three-fifths being deposited in the
tourism and convention fund and the remaining revenues into a lake
management and enhancement fund. The additional funding recognized the
importance of Chautauqua Lake and the other lakes in Chautauqua County
as economic drivers for the tourism industry.

The current bed tax authorization expires on November 30, 2025. This
bill extends the authorization for the current 5% bed tax through Novem-
ber 20, 2027.

This bill also amends the current language to confirm that all the bed
tax funds (after deducting a maximum of 10* for the administration of
such tax and such programs) must be used to benefit tourism, recreation,
and related economic development. The tourism and hospitality industry
collect the bed tax, and all the resulting funds are intended to benefit
the tourism and hospitality industry. This bill amends the current
language to require that at least onehalf of the funds in the special
tourism and convention fund be allocated to the official tourism
promotion agency for the county for marketing, advertising and promoting
the county. The remaining funds in the tourism and convention fund can
be used for trade shows, special events, parka, recreational facilities,
tourism attractions, and similar activities.

This bill amends the current language to require that at least one-half
of the funds in the special lake management and enhancement fund must be
used for the control, treatment, and/or removal of invasive and nuisance
macrophytes, reduction of harmful algae blooms, and/or shoreline clean-
up. The remaining funds can be used to enhance the lakes for fishing,
boating, and other recreational activities; reduction of watershed
erosion, sedimentation, and nutrient loading; and similar activities.
This language is intended to ensure that at least one-half of the lake
management and enhancement funds are used directly for in-lake manage-
ment activities, such as those performed by the Chautauqua Lake Associ-
ation, Chautauqua Lake Partners, Cassadaga Lakes Association, Findley
Lake Watershed Foundation, Bear Lake Association, and for Mobitrac and
shoreline cleanup; these funds are not intended to be used for third-
party staff expenses for project evaluation, supervision or related
management or administrative expenses, such as the county watershed
coordinator or the Chautauqua Lake & Watershed Management Alliance.

Finally, this bill authorizes the county, as a condition of receiving
funding, to require recipients of such funding to meet specified
performance requirements; meet maintenance-of-effort requirements;
provide matching contributions; comply with reasonable limitations on
fund balances; comply with appropriate accounting, performance, and
reporting requirements, including timely reporting of time and material
costs, GPS tracking data, equipment utilization information, and similar
information; cooperate and coordinate with the county and with other
organizations and entities receiving funding; and impose similar
requirements and restrictions on recipients of such funding.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None to state.

 
EFFECTIVE DATE:  The amendments would take effect on December 1, 2025.
The bed tax authorization would be extended from November 30,2025,
through November 30, 2027.