Video: Fidler Champions Hotel Tax Extension


by on Nov 4th, 2011

City Councilman Lew Fidler is pushing to extend a hotel tax that he helped get approved two years ago to put much needed revenue in city coffers, though the mayor and hotel industry may put up a fight.

Fidler has spoken about the hotel tax at several civic meetings over the past month, informing residents that the tax – which is put on top of the cost of hotel stays in the five boroughs – could expire soon if the City Council doesn’t act fast. Fidler doesn’t just want to extend it, but he also wants to increase the rate.

Fidler is looking for a hotel tax hike from 5.8 percent to 6 percent, amounting to about 60 cents on a $300 hotel bill. The local pol said the tax has already raised $159 million, “not a penny of which is coming from your pocket.” [CORRECTED]

“If we can extend this tax at a time when the mayor is looking for billions in savings, it will generate over that same one-and-a-half year period [that it has currently been in place] another $97 million,” he said. “That to me is the kind of tax that we want.”

The Hotel Association of New York has opposed the tax because they feel it will hurt tourism to the city.

“We feel very strongly that any tax increase would be detrimental to the industry and the city,” said Joseph E. Spinnato, the president of the association, in a New York Times article.

Spinnato’s claim echoes that of Mayor Bloomberg when the bill initially passed, according to Fidler.

“The fact is that when we were first trying to do this, the mayor said, ‘Don’t do this, it’ll kill tourism.’ And the fact of the matter is that at the time this was first done we were third in the country in tourism, and today we’re first,” Fidler said. “Obviously it’s not because we raised the tax, but it’s to show you that the tax did not affect tourism.”

“It would be absolutely insane to let someone else’s money slip through our fingers when we’re looking for every penny we can make,” he added.

UPDATE (11/5/2011): Lew Fidler left a comment with an update on the situation, saying the following:

Ned,
Thanks for the post but I have corrections…and a major update.

The City has control over only two taxes…the proprty tax…and some small amount of the hotel tax. We were able three years ago to raise the latter by 7/8ths of one percent, maximizing the rate. That increase cost about three dollars a night on the average hotel stay. It was done over the Mayor’s objection. Nonetheless, we did it and since the increased rate has generated close to $160 million in revenue.

I am not seeking to further raise the rate. In fact, we would lack the power to do so. The problem is that the three year old rate increase expires at the end of the month, which would leave an estimated $96 million on the table uncollected.

For great update, the Mayor now agrees with me. On Thursday, I introduced a bill to extend the tax rate ” at the request of the Mayor”, proving that the cowmen and the farmers can at least work together.

Last week, the Mayor personally told me that on the continuation of the rate ” we cannot afford not to.” on this one, we now agree. Great news for City taxpayers.

I expect that with everyone onboard, the bill will move forward quickly.

Lew from Brooklyn

PS When Councilman Oddo saw the bill as Fidler at the request of the Mayor, he asked on the Council floor whether anyone had checked the temperature in hell today…..funny dude!

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  • NSF

    Three cheers for Lew Fidler! The mayor has tried (i.e. East River bridge tolls) to and imposed additional fees and taxes on city residents numerous times in his tenure, but won’t back a measly 0.2 percent hotel tax for tourists? Bloomberg once again proves why he’s serving one term too many! Let’s hope the City Council votes for the increase.

    • http://www.brucebrodinsky.com Bruce B

      i’m against all additional taxes. Enough already. It just motivates the government to get even more bloated and corrupt.  When higher taxes do not solve the problem at hand, what do politicians like this blame the problem on? Sure enough, NOT ENOUGH REVENUE! Giving the government more money is like feeding a diabetic candy because it makes him feel good for 2 seconds.

      What are you guys going to do when the system collapses a la Greece? Blame Bush?

  • Lew from Brooklyn

    Ned,
    Thanks for the post but I have corrections…and a major update.

    The City has control over only two taxes…the proprty tax…and some small amount of the hotel tax. We were able three years ago to raise the latter by 7/8ths of one percent, maximizing the rate. That increase cost about three dollars a night on the average hotel stay. It was done over the Mayor’s objection. Nonetheless, we did it and since the increased rate has generated close to $160 million in revenue.

    I am not seeking to further raise the rate. In fact, we would lack the power to do so. The problem is that the three year old rate increase expires at the end of the month, which would leave an estimated $96 million on the table uncollected.

    For great update, the Mayor now agrees with me. On Thursday, I introduced a bill to extend the tax rate ” at the request of the Mayor”, proving that the cowmen and the farmers can at least work together.

    Last week, the Mayor personally told me that on the continuation of the rate ” we cannot afford not to.” on this one, we now agree. Great news for City taxpayers.

    I expect that with everyone onboard, the bill will move forward quickly.

    Lew from Brooklyn

    PS When Councilman Oddo saw the bill as Fidler at the request of the Mayor, he asked on the Council floor whether anyone had checked the temperature in he’ll today…..funny dude!

    • Lew from Brooklyn

      I so hate typing on an iPad…changes all kinds of words. For one, in the ps, the word was hell, one he’ ll.

      Lew

      • Lew from Brooklyn

        Aaaaaaaaaagh!
        Not he’ll….
        Sheesh.
        Lew

      • http://www.nedberke.com Ned Berke

        If it’s such a problem, I can take that iPad off your hands. I wouldn’t want you so inconvenienced. ;)

    • http://www.nedberke.com Ned Berke

      Thanks! I added your comment to the article itself so it won’t be missed. Just to clarify – the hotel tax rate is set by the state, but the city council is permitted to lump on an additional amount, and it is ONLY that additional amount that is set to expire? 

      Apologies for mixing it up.

      • Lew from Brooklyn

        The state authorizes the city. In this case, state law permitted the rate to go as high as 7% . Three years ago,it was at 6%. As the law also says that if it goes all the way to 7%, we have to give 1/8% to NYC and Co., we raised it to 6 7/8%. Hope that clarifies.
        Lew from Brooklyn

        • Lew from Brooklyn

          Apologies again. All the numbers I gave you were 1% too high. The State law max is 6%. 3 years ago the rate was 5%. We riased it to 5 7/8%, which is the rate that will expire at the end of the month and my bill seeks to extend.
          Can’t blame this one on the Ipad….the percentages were off, but the point and the dollars are the same.
          Lew from Brooklyn

    • nolastname

      DId Oddo’s remark come from the pairing of Lew and Bloomie?  That’s not funny at all.

  • Alex

    I would have been more shocked if Mr. Fidler would look at a way to tackle costs and abuse and address that part of the revenue/expense equation. Then again, it’s much easier to raise taxes. This is just another reason why not to vote for the Democrats.

    • http://twitter.com/Lostinservice Lostinservice

      What the hell are you talking about? The Hotel tax is a tax on the occupants of a hotel/motel. The occupant pays that, i.e. tourists, not the residents of NYC. This is the type of tax that we need, that generates revenue from non-residents.

      And be thankful that Mr. Fidler recently blocked the passage of a bill in the council that would have allowed residential parking permits around the Barclays Center area. That would have double taxed resident drivers and set an ugly precedent.

      You should know what the hell you’re criticizing before you start looking for key buzzwords like “raise” and “tax” and badmouthing those looking out for you.

      • Alex

        Relax Mrs. Fidler – did not mean to upset you. Just because the tax is mostly levied on the tourists, it does not make it right.  It’s another TAX that makes visiting and doing business in NY more expensive.

        • http://twitter.com/Lostinservice Lostinservice

          o.O can you please let me know what you’re smoking and where we can get some? And I’m referring to the “Mrs. Fidler” line.

          Tourists have come and will continue to come to NYC despite the tax, this doesn’t effect anything negatively.

    • http://www.brucebrodinsky.com Bruce B

      I hear ya. I hear ya. But the republicans have been guilty too. We need a third party, the non-raise-tax party.

  • Local Broker

    So if you reside in NYC and want to stay at a hotel do you have to pay the tax? Sure you do.