S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7321
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 10, 2025
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation  to  authorizing  the  city  of
   Mount  Vernon  to  impose a hotel and motel tax; and providing for the
   repeal of such provisions upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The tax law is amended by adding a new section 1202-kk to
 read as follows:
   § 1202-KK. HOTEL OR MOTEL TAXES IN  THE  CITY  OF  MOUNT  VERNON.  (1)
 NOTWITHSTANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE CITY OF
 MOUNT VERNON, WESTCHESTER COUNTY, IS HEREBY AUTHORIZED AND EMPOWERED  TO
 ADOPT  AND  AMEND LOCAL LAWS IMPOSING IN SUCH CITY 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 CITY. FOR THE PURPOSES OF
 THIS  SECTION,  THE  TERM "HOTEL" OR "MOTEL" SHALL MEAN AND INCLUDE, BUT
 NOT BE LIMITED TO, HOTELS, MOTELS, TOURIST HOMES, MOTEL COURTS, BED-AND-
 BREAKFAST ESTABLISHMENTS, SHORT-TERM RENTALS, VACATION RENTALS, AIRBNBS,
 CLUBS OR SIMILAR FACILITIES, WHETHER OR NOT MEALS ARE SERVED  TO  GUESTS
 OR RESIDENTS THEREOF, AND/OR A LOCATION THAT IS OTHERWISE MADE AVAILABLE
 FOR  TRANSIENT  LODGING  ACCOMMODATION FOR RENT DIRECTLY BY THE OWNER OR
 THROUGH AN AGENT, OPERATOR OR COMPANY. THE RATES OF SUCH TAX  SHALL  NOT
 EXCEED  FIVE  AND  EIGHT HUNDRED SEVENTY-FIVE THOUSANDTHS PERCENT OF THE
 PER DIEM RENTAL RATE FOR EACH ROOM,  PROVIDED  HOWEVER,  THAT  SUCH  TAX
 SHALL  NOT  BE  APPLICABLE  TO A PERMANENT RESIDENT OF A 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10934-01-5
 S. 7321                             2
              

 
   (2) SUCH TAX MAY BE COLLECTED AND ADMINISTERED  BY  THE  CHIEF  FISCAL
 OFFICER  OF THE CITY OF MOUNT VERNON BY SUCH MEANS AND IN SUCH MANNER AS
 OTHER TAXES, WHICH ARE NOW COLLECTED AND ADMINISTERED BY  SUCH  OFFICER,
 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 OCCU-
 PIED 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 CITY OF MOUNT
 VERNON 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 CHIEF FISCAL
 OFFICER OF THE CITY, 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 LAWS MAY PROVIDE FOR THE  FILING  OF  RETURNS  AND  THE
 PAYMENT  OF  THE TAX ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR
 SHORTER PERIOD OF TIME.
   (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH  TAX  UPON
 ANY  TRANSACTION,  BY  OR  WITH  ANY OF THE FOLLOWING IN ACCORDANCE WITH
 SECTION TWELVE HUNDRED THIRTY OF THIS ARTICLE:
   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 POLI-
 TICAL SUBDIVISION OF THE STATE;
   B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS  IMMUNE  FROM  TAXA-
 TION; AND
   C.  ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND
 OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA-
 BLE, OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO  CHIL-
 DREN  OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE
 BENEFIT OF ANY PRIVATE SHAREHOLDERS OR  INDIVIDUAL  AND  NO  SUBSTANTIAL
 PART  OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE
 ATTEMPTING TO INFLUENCE THE 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.
   (6)  ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE PURSUANT
 TO THIS SECTION SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITU-
 TIONALITY OR ANY OTHER REASON WHATSOEVER BY A PROCEEDING  UNDER  ARTICLE
 SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THERE-
 FOR 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  OR  REGULATION
 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
 S. 7321                             3
 
 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, INTERESTS 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.
   (7) WHERE ANY TAX IMPOSED PURSUANT TO THIS  SECTION  SHALL  HAVE  BEEN
 ERRONEOUSLY,  ILLEGALLY  OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION
 FOR THE REFUND THEREOF DULY MADE TO THE PROPER FISCAL OFFICER  OR  OFFI-
 CERS, AND SUCH OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENY-
 ING  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 DETERMI-
 NATION 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 PROSE-
 CUTION OF SUCH PROCEEDING.
   (8)  EXCEPT IN THE CASE OF A WILLFULLY 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.
   (9)  ALL  REVENUES  RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE
 LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE CITY OF  MOUNT  VERNON
 AND  SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE CITY.
 SUCH REVENUES SHALL BE RETAINED TO DEFER THE  EXPENSE  OF  THE  CITY  IN
 ADMINISTERING  THE  TAX PURSUANT TO THIS SECTION AND THE BALANCE OF SUCH
 REVENUES SHALL BE USED WITHIN THE CITY OF MOUNT VERNON AS SO  DETERMINED
 BY THE CITY OF MOUNT VERNON CITY COUNCIL.
   (10)  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.
   (11) EACH ENACTMENT OF SUCH LOCAL LAW MAY PROVIDE FOR  THE  IMPOSITION
 OF  A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS
 FROM THE EFFECTIVE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION  SHALL
 PROHIBIT  THE  ADOPTION  AND  ENACTMENT  OF  LOCAL LAWS, PURSUANT TO THE
 PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER  LOCAL  LAW
 ADOPTED PURSUANT TO THIS SECTION.
   §  2.  This  act  shall  take  effect  immediately  and shall apply to
 contracts entered into on or after such date;  provided,  however,  that
 the  provisions of this act shall expire and be deemed repealed December
 31, 2028.