CHEEKTOWAGA, N.Y. (WKBW) — State Senator April Baskin has announced plans to introduce a bill next week in Albany that, if passed, would implement a 3% bed tax on visitors staying in the town's 17 hotels.
“It just makes sense for the Town of Cheektowaga,” Senator Baskin stated regarding the proposal.
She emphasized that the town's proximity to the Buffalo Niagara International Airport and its significant hotel presence justify the need for a travelers' tax.
Baskin also said it's necessary because town expenses are going up and it has a "sizable debt." She said this proposed bed tax would help reduce the need for future borrowing and would limit major property tax hikes
"If we don’t get this money-saving bill done next month, Cheektowaga taxpayers will be faced with even more financial hardship," Baskin said. "Town costs are escalating each year, so a practical approach is a necessity, rather than the reckless practice of dipping into rainy day funds and buying high-interest bonds.”
She said Cheektowaga Supervisor Brian Nowak and Assemblymember Patrick Chludzinski both support the proposal.
Taxpayers would have "more money in their pocket," Baskin said, with this tax on 17 hotels in the town. She explained that the bed tax would offset the need for expensive bonds.
"Given the number of hotels and their locations, this bed tax makes more sense than the one proposed for the City of Buffalo," Baskin said. "And residents will see how the bed tax revenue benefits them because the Town must use it for capital projects: fixing snow plows and making repairs to the Senior Center.”
Town Supervisor Brian Nowak echoed these sentiments, pointing out that the town has faced budget challenges as spending has outpaced revenue in recent years.
“We’re in rough shape,” Nowak said.
The proposed bed tax, he believes, could help address aging municipal vehicles, repair infrastructure, and alleviate some reliance on debt financing, which has exceeded $50 million for projects such as road repairs and constructing a new police station.
However, the proposed tax has drawn criticism from local tourism leaders. Patrick Kaler, President and CEO of Visit Buffalo Niagara, has formally opposed the tax, highlighting concerns about its potential negative impact on the region's competitiveness. Kaler warned that the increased costs could deter travelers, particularly from Canada, where the exchange rate adds to the expense of visiting the U.S.
"As Erie County’s official destination marketing organization, we are deeply concerned about the negative consequences of these increases on our region’s competitiveness. This is particularly troubling because as the funds would be used to fill municipal budget deficits rather than support local tourism marketing or destination-related infrastructure."
The primary concerns shared by Kaler's organization include:
- The risk of discouraging potential visitors, especially those considering venues for amateur athletic events traditionally held in the region.
- Flawed revenue assumptions regarding visitor numbers and the anticipated tax revenue.
- The tax's incongruence with industry best practices for bed tax revenue, which is typically used to promote tourism rather than cover budget deficits.
