Council eyes halving hotel tax

The New York City Council is so concerned about the sluggish recovery of the Big Apple’s $100 billion tourism market from COVID-19 that it’s considering dramatically slashing the local hotel tax to spur a faster rebound, The Post has learned.

The Hotel Association of New York City is urging Mayor Adams and the council to lower the occupancy tax rate on hotel room stays from 5.875% to 2.875%.

The hotel occupancy tax is expected to generate $255 million in revenue for the city for the fiscal year ending June 30, according to the mayor’s preliminary budget plan. But studies suggest the tourism market won’t fully bounce back to 2019 pre-pandemic levels until 2026.

“I definitely think the tax burden is too steep,” said Councilwoman Amanda Farias (D-Bronx), chairwoman of the council’s economic development committee.

Farias said there is “momentum” behind slashing the tax rate.

“What the hotel industry is asking for isn’t too big a lift. Now is the time to be proactive to help the tourism industry. We don’t want to wait until 2026 for a comeback,” the councilwoman said.

A report by the Hotel Association found that a temporary reduction in the hotel occupancy tax to 2.875% for two years would allow hotels to increase occupancy rates and generate more revenue.

Hotels shed 20,000 mostly union jobs during the pandemic, and that’s another factor council members are weighing.

“These are my neighbors who work at the hotels,” said Farias.

The Hotel Trades Council, the union representing hotel workers, also has been pushing for government relief. It endorsed Adams’ bid for mayor last year and has endorsed Gov. Hochul in this year’s gubernatorial race.

Ex-Mayor Bill de Blasio issued an executive order that temporarily suspended the hotel tax from June 1 to August 31 of last year, a three-month “holiday” that provided a $60 million break to the battered industry.