Special interests would undermine Housing Action Fund
In a county legislative hearing on March 19, representatives for the “mega, all-inclusive” hotels and resorts in the area pled their case for a tax reduction on an already reduced tax. (bit.ly/3TxpUvH). The base rate for defining the cost of their rooms alone is currently 40% of all charges, not including meals, activities, and other amenities. To this room cost, the new county occupancy tax of 4% would be applied. Speakers asked for a more “fair” rate of 20%, citing their operational costs and other taxes.
Their arguments were fundamentally misleading. Crucially, the businesses themselves are not subject to the occupancy tax; it is their customers who are taxed. These large hotels would argue that competitive pressures would force them to raise their prices and deter customers from booking. In fact, they are successful businesses that will continue to be successful when they make adjustments to pricing. Their customers — often corporate or international — who can afford their high prices to begin with, will not likely flee, especially when the occupancy tax in neighboring counties is higher than Ulster’s.
Regarding fairness, if the mega hotels win their tax break, their customers would be paying close to the same dollars for their “rooms” as average folks pay for average hotels and motels, which also offer amenities and activities like swimming pools, fitness rooms, and breakfasts. (These establishments get base rates for rooms at 60-85% of full cost.) With the proposed reduction, a guest with a luxury room charge of $600 at the mega hotel could pay less of an occupancy tax fee than Frank and Eva Average booking for $150 at a smaller hotel/motel. More breaks for the wealthier.
Importantly, the new occupancy tax is intended to funnel money into the Ulster County legislature’s recently enacted Housing Action Fund. This fund will seed projects aimed at easing the county’s glaring housing crisis. A victory for the mega hotels would pull a million dollars of the anticipated revenue from the occupancy tax, crippling the program at its start. The mega hotels should adjust their balance sheets, serve their customers, and do their part to ease the housing crisis that even they have acknowledged hinders their ability to hire and keep their workers.
Tom Denton New Paltz
Slow down in work zones
National Work Zone Awareness Week is April 15-19, but safety is our top priority of the State Department of Transportation all year long.
In 2023, New York’s Automated Work Zone Speed Enforcement Program went into effect, focusing on speed violations within construction and maintenance zones along New York’s highways. The crews working on our highways are our families, our neighbors and our friends — working to keep New Yorkers moving.
The key message is for drivers to remain alert at all times. Avoid typical distractions like the use of your cell phone and please focus on your surroundings as it could be the difference between a safe journey or a crash resulting in damage, injury, and possibly the loss of life.
Sadly, recorded speeds have been excessive. We have zero tolerance for speeds at 20, 30 or 40 or more mph over the speed limit through work zones and ask motorists to please slow down.
We anticipate a very active construction season as we work to repair and enhance the state highway system in the Hudson Valley. We appreciate your patience in allowing us to do these critical jobs safely and effectively.
Your community is our community. Let’s make 2024 a banner year for work zone safety. Lance MacMillan
Poughkeepsie The writer is a regional director with the state Department of Transportation.