BUFFALO, N.Y. (WKBW) — Visitors to Buffalo may soon see higher hotel bills as Acting Mayor Chris Scanlon proposes a new 3% “bed tax.”
The proposal, which Scanlon shared with legislators in Albany during a committee meeting on Tuesday, aims to generate an additional $4 million-$5 million in revenue for the city.
“The proceeds of those tax revenues would be reinvested in our tourism and cultural assets to make Buffalo more appealing to future tourism,” Scanlon explained.
If approved, the new tax would be added on top of Erie County’s existing 5% bed tax, which currently brings in about $13 million annually.
Mixed Reactions
The proposed increase has sparked mixed reactions from residents Tony, Christian and Jon.
“I can understand there’s inflation and everything, but at the same time, the extra expenses on top of hotels isn’t really helping,” Jon said.
Crunching the numbers, the new tax would add an estimated:
- $12 to a $150 per night hotel stay
- $16 to a $200 per night stay
- $24 to a $300 per night stay
“That’s a lunch so it kind of takes away a meal a week,” Tony noted. "An extra 24 is an hour of work and I don't think an hour of work is worth taxing that."
“It would definitely make me rethink things for sure,” Christian added.
"I mean that feels like an extra tax and that's a whole meal right here," Jon said.
Fair Approach
Fillmore District Council Member Mitch Nowakowski, who represents downtown Buffalo where many hotels are located, supports the proposal, calling it a fair approach.
“I certainly understand the frustration where people don’t want to pay anything more than they have to when it comes to hotels,” Nowakowski said. “But the fact is that it costs the city of Buffalo money to maintain the locality in which you’re staying.”
Nowakowski pointed out that while Erie County collects revenue from the existing bed tax, the City of Buffalo bears much of the cost of maintaining infrastructure, emergency services, and inspections for hotels.
"I mean, think about it, this building that we're standing behind, the City of Buffalo has to inspect," Nowakowski said. "We have to have the emergency EMS and fire. If an emergency happens, it's our infrastructure, our sewer and our lighting, yet we get nothing. You're not calling, Erie County. You're calling the Buffalo Police and Fire Department to be able to respond, and that costs taxpayer dollars."
What’s Next?
The proposal still has a long road ahead before taking effect.
It would need approval from Albany lawmakers and then from Buffalo’s Common Council.
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