Lots of reservations about Amherst's proposed bed tax

AMHERST, N.Y. (WBEN) -A proposed 2.5% bed tax in Amherst is drawing a mixed bag of responses with hoteliers questioning it while town leaders are championing the push.

And, it will come to head at 3 p.m. Monday, April 13 when the Amherst Town Board considers asking state lawmakers to approve the proposed 2.5% bed tax.

Amherst is following Buffalo and Cheektowaga that, in the past year, have gained state approval to add bed taxes to the bills visitors pay at area hotels.

"This is only going to hurt us in the long run," said David Hart, Hart Hotels president and CEO.

Hart Hotels owns several properties.

"The barn door is open and all of the horses are out," Hart said,

Critics say Amherst's 2.5% bed tax will now drive the total taxes collected on each hotel room and short term rental property to slightly more than 16%. That figure includes the Erie County 5% bed tax and county's 8.75% sales tax.

"This is going to hurt our ability to get more business," Hart said. "It's almost like Amherst is working against what is good business practices."

Not so, says Amherst Supervisor Shawn Lavin.

Lavin said the bed tax is designed to have visitors "who benefit from our infrastructure, should support it."

Projections indicate Amherst could generate around $3 million in new bed tax revenues, said Councilman Michael Szukala.

Of that, 75% would be allocated for the town's general fund and 25% for upgrades, repairs and renovations to the town's youth and amateur sports facilities.

Amherst has 25 hotels and 50 registered short term stay sites like Airbnb locations. Combined those hotels account for 1,405 hotel rooms.

"I first thought it would push business away," Szukala said. "But, doing more research, I don't think that will happen."

Make no mistake: Amateur and youth sports is big business in Amherst.

Between 2023 and last year, the town welcomed 73 sporting events - much of which was centered on the four-rink Northtown Center and adjoining baseball and softball diamonds.

Collectively, those events saw 116,840 hotel room nights booked and generated an economic impact of $87 million.

It also comes against the backdrop of the proposed 716 Sports Complex on Maple Road that will include two, domed amateur and youth sports facilities plus a 120-room hotel. The $80 million project, set to begin construction this summer, could bring in 1 million athletes and their supporters and have a projected $20 million economic impact in its first few years.

Szukala said if it turns out the increased bed tax is hurting, not helping Amherst, he is ready to pivot.

"This is something we can reverse," Szukala said.

Still, William Paladino, Ellicott Development Co. CEO, said he is very concerned about the extra bed tax and its impact on several hotels he operates in Amherst including the Mosey on Main Street and Staybridge Suites on Sweet Home Road.

"I feel like we are just getting piled on," Paladino said. "This is still a tax and, yes, it may send people elsewhere."