INCREASING TAXES IN ULSTER SETS BAD PRECEDENT
A proposal by the Ulster County Legislature to double the occupancy (bed) tax rate in Ulster has been voted on and sent to Albany for the state legislature's approval. The County Executive has signaled she will support the legislation. But contrary to the talking points being shared by supporters of this proposal, not all surrounding counties bed tax rates are above Ulster - for example, Greene County has no (‘0’) bed tax (promoted as the ‘Great Northern Catskills’ and direct competitor of Ulster’s tourism industry).
Our primary concern is that the legislature is taking away an important and unique competitive advantage our hospitality industry has - a lower bed tax rate as compared to most surrounding counties. This advantage has helped grow Ulster’s tourism industry over the last 10 years, and helped fill the yawning local economic gap left after IBM closed. Tourism is now the #1 industry in Ulster, surpassing even Dutchess’ vaunted tourism industry's total receipts just a few years ago. This is something of a real success. Sustainable job creation is not easy in Ulster (or most anywhere in NYS).
Surprisingly, the legislature had not engaged with representatives of the Ulster lodging industry on this proposal, so it may not fully appreciate how this important industry feels about having a key strategic advantage taken away. On this point we are very concerned that public policy is being developed in a vacuum without direct input from those most impacted. This doesn’t sound good for other industries that may be taxed or regulated in the future - they too many not be consulted or even spoken with before a new law is proposed and voted upon.
Lastly, we are very aware of the frustrations with Short Term Rentals (STR/AirBNB) - but this proposed tax increase isn’t focused on STR, but raises taxes on ALL lodging types, from resorts to Bed and Breakfasts and everything in between. If STRs are assumably exacerbating the local housing crises, why not focus on STRs instead of increasing taxes on all of our hospitality industry? The hospitality industry in particular has gone thru a rollercoaster the last few years with COVID and now staffing shortages, playing havoc with their financials and operations.
We ask the Ulster Legislature and County Executive to reconsider support for this tax increase at this time until a comprehensive study is conducted, including the impact tourism has on the county and of STRs impact on housing and the lodging industry. We shouldn’t be tinkering with our largest industry without more input from those within the industry.