ÈËÊÞÐÔ½»

The Auburn City Council on Thursday voted to schedule a public hearing — the first action needed to implement the so-called bed tax. The process will play out at council meetings this month.

Here is what you should know about Auburn's proposed hotel tax:

How can the city of Auburn charge a hotel tax?

In New York, local governments must receive authorization under the state's Municipal Home Rule Law to institute hotel, or occupancy, taxes.

Several municipalities, including Cayuga County and the village of Weedsport, charge hotel taxes. The county's hotel tax revenue is largely used to fund the local tourism office.

The city of Auburn began its pursuit of a hotel tax in 2024. The effort was thwarted by Assemblyman John Lemondes, one of the city's state representatives. Lemondes refused to sponsor the hotel tax legislation in the Assembly, despite supporting similar bills for the town and village of Skaneateles, as well as Weedsport, in 2023.

City leaders revived their campaign for a hotel tax this year. The 2025-26 state budget includes language allowing the city to institute a hotel tax.

Why a hotel tax?

Since discussions about a potential hotel tax began, city leaders have said that it would provide much-needed revenue. One of the justifications for the tax is the state's failure to increase municipal aid.

In the local law that will be considered by the Auburn City Council, it states that 100% of the revenue will be used for "the promotion of tourism, historic and cultural programs, parks and recreation, beautification and maintenance of the facilities, infrastructure and capital improvements necessary to support those services, as well as support for general government services such as public safety and for the administration and collection costs of the occupancy tax."

How much will be charged?

If adopted by the Auburn City Council, the tax will be 5% on hotel stays. This will be in addition to other taxes, such as the county's occupancy tax, and fees.

As an example, the pre-tax rate for a room at the Hilton Garden Inn in Auburn on the Fourth of July is $303.91. With the city and county occupancy taxes, along with the sales tax, the room would cost $358.62.

When will the tax take effect?

If the City Council approves the tax this month, it will take effect on July 1.

Are there any exceptions?

There are a few, mainly for governmental uses of the hotels that would exempt those entities from paying the local tax.

One example is for housing homeless individuals. Cayuga County places homeless residents in hotels, including a few within the city. While the county pays for the rooms, it would not be subject to the hotel tax.

What are the next steps?

The City Council approved a resolution to schedule a public hearing on the proposed local law. The hearing will be held at 5 p.m. Thursday, June 26, which coincides with the regular council meeting.

A first reading of the local law will occur at the City Council meeting on Thursday, June 12. This is a necessary part of the multi-step process to adopt a local law.

After the public hearing on June 26, the City Council will vote on implementing the hotel tax.