Amherst approves 2.5% hotel bed tax

Amherst, N.Y. (WBEN) - The Amherst Town Board has approved the adoption of a 2.5% hotel bed tax that will generate revenue for municipal services and community investments, including improvements to town-owned recreational and community facilities.

This local law requires all short-term (under 30 days) lodging establishments located in Amherst to collect a 2.5% tax from each room booked, and remit the tax in accordance with the requirements set by the town.

All revenue generated from this law will be deposited into the town’s general fund account, with 75% to be used for any lawful purpose and 25% to be put towards capital improvements related to youth sports, health and wellness activities, community centers, parks, and playgrounds.

"The benefits are substantial, because a portion of that tax is going to be reallocated directly into capital to a lot of our community spaces and a lot of the sports tourism we currently offer to not just Amherst, but the country as a whole," said Lavin in an interview with WBEN.

Each year, the Northtown Auto Center hosts ice hockey and softball tournaments that bring in hundreds of thousands of visitors and millions of dollars in local economic impact. Tourist events such as these put a measurable demand on our local services.

"As far as Alaska, people are coming here to play hockey. And the thought being is they're using the resources like our roads, and if they're here in the winter, the salt, the plows, the police. It's just an opportunity for the town to share the burden of what the local property residents are paying in the taxes," Lavin explained.

The Northtown Auto Center is also a 28-year-old building with 185,000 square feet of recreation space, all of which require significant maintenance.

Additionally, increased police and emergency services, highway crews for road maintenance, and facility staff are all necessary to operate a successful and safe event.

Bed tax revenue benefits both residents and visitors by strengthening the visitor experience and stimulating the local economy. The revenue that is reinvested will maintain and enhance the town services and amenities that attract visitors to Amherst.

Lavin feels the hotel bed tax is a way to diversify some income streams.

"We don't want to put everything on property owners in the Town of Amherst. People come to our community, they're using our resources; and we're always happy to have them, but people who are staying here the night, it's a small amount of money they're just paying into the occupancy tax," he said.

"We estimate the occupancy tax will be close to $3 million next year. That's a lot of money in a very struggling budget year-over-year. And to not put that on property owners and to put it on the people who are visiting our region, especially in Amherst, who host these hockey tournaments, who put resources into having hockey tournaments or tournaments in general, I think it's a smart move."