The next time you have fun at an event the city of Cortland is offering, might want to say thanks to the out-of-towners who help pay for it.
Cortland’s Common Council voted this week, 7-0 with Alderperson Mary Clare Pennello (D-3rd Ward) absent, to enact a 1% tax on hotel, motel and short-term rental stays to generate money for the city’s tourism activities.
Mayor Scott Steve said last year that he expected a 1% surcharge to generate about $16,000, but on Tuesday, Administration and Finance Director Elizabeth Greenwood said she couldn’t project a reasonable income for two reason:
•She has no reliable records on how much revenue previous hotel and motel taxes generated.
•The new law includes, in addition to all the hotels and motels, short-term rental properties, such as leased through AirBnB.
The city had the authority to charge the tax from 2020, but the law expired under a sunset clause in September 2023.
The law the city adopted allows it to charge between 1% and 3%, and outlines how the tax will be collected, but Steve said the city would go with the lowest tax, to start.
“We don’t want to give the disadvantage to city-owned hotels,” that might compete with hotels outside the city, such as in Cortlandville. If need be, the city can increase the tax as part of its budgeting process.
“By the end of the second quarter, we’ll really see the cycles,” and have an idea how much the tax would generate.
The money — minus about $15,000 to pay a city employee to administer the tax — would go toward tourism promotion, which includes events such as the city’s Midnight on Main on New Year’s Eve. The idea is that people who come to Cortland from out of town, including to attend those events, would help fund them. It could fund more expensive bands for a summer concert series, too.
“I’d like to jump-start that again,” said Alderperson Tom Michales (R-8th Ward). “This money will help.”
