N.Y. Tax Law § 1202-aaa: Occupancy tax in the city of Rye

* § 1202-aaa. Occupancy tax in the city of Rye. (1) Notwithstanding

any other provision of law to the contrary, the city of Rye, in the

county of Westchester, is hereby authorized and empowered to adopt and

amend local laws imposing in such city a tax, in addition to any other

tax authorized and imposed pursuant to this article, such as the

legislature has or would have the power and authority to impose upon

persons occupying any room for hire in any hotel. For the purposes of

this section, the term "hotel" shall mean a building or portion of it

which is regularly used and kept open as such for the lodging of guests.

The term "hotel" includes an apartment hotel, a motel or a boarding

house, whether or not meals are served. The rate of such tax shall not

exceed three percent of the per diem rental rate for each room whether

such room is rented on a daily or longer basis.

(2) Such taxes may be collected and administered by the chief fiscal

officer of the city of Rye by such means and in such manner as other

taxes which are now collected and administered by such officer or as

otherwise may be provided by such local law.

(3) Such local laws may provide that any taxes imposed shall be paid

by the person liable therefor to the owner of the room for hire in the

hotel or other similar place of public accommodation occupied or to the

person entitled to be paid the rent or charge for the room for hire in

the hotel or other similar place of public accommodation occupied for

and on account of the city of Rye imposing the tax and that such owner

or person entitled to be paid the rent or charge shall be liable for the

collection and payment of the tax; and that such owner or person

entitled to be paid the rent or charge shall have the same right in

respect to collecting the tax from the person occupying the room for

hire in the hotel or other similar place of public accommodation, or in

respect to nonpayment of the tax by the person occupying the room for

hire in the hotel or similar place of public accommodation, as if the

taxes were a part of the rent or charge and payable at the same time as

the rent or charge; provided, however, that the chief fiscal officer of

the city, specified in such local laws, shall be joined as a party in

any action or proceeding brought to collect the tax by the owner or by

the person entitled to be paid the rent or charge.

(4) Such local laws may provide for the filing of returns and the

payment of the taxes on a monthly basis or on the basis of any longer or

shorter period of time.

(5) This section shall not authorize the imposition of such tax upon

any of the following:

a. The state of New York, or any public corporation (including a

public corporation created pursuant to agreement or compact with another

state of the dominion of Canada), improvement district or other

political subdivision of the state;

b. The United States of America, insofar as it is immune from

taxation; or

c. Any corporation or association, or trust, or community chest, fund

or foundation organized and operated exclusively for religious,

charitable or educational purposes, or for the prevention of cruelty to

children or animals, and no part of the net earnings of which inures to

the benefit of any private shareholder or individual and no substantial

part of the activities of which is carrying on propaganda, or otherwise

attempting to influence legislation; provided, however, that nothing in

this paragraph shall include an organization operated for the primary

purpose of carrying on a trade or business for profit, whether or not

all of its profits are payable to one or more organizations described in

this paragraph.

d. A permanent resident of a hotel or motel. For the purposes of this

section, the term "permanent resident" shall mean a natural person

occupying any room or rooms in a hotel or motel for at least thirty

consecutive days.

(6) Any final determination of the amount of any tax payable hereunder

shall be reviewable for error, illegality or unconstitutionality or any

other reason whatsoever by a proceeding under article seventy-eight of

the civil practice law and rules if application therefor is made to the

supreme court within thirty days after the giving of notice of such

final determination, provided, however, that any such proceeding under

such article seventy-eight shall not be instituted unless:

a. The amount of any tax sought to be reviewed, with such interest and

penalties thereon as may be provided for by local laws or regulations

shall be first deposited and there shall be filed an undertaking, issued

by a surety company authorized to transact business in this state and

approved by the superintendent of financial services of this state as to

solvency and responsibility, in such amount as a justice of the supreme

court shall approve to the effect that if such proceeding be dismissed

or the tax confirmed the petitioner will pay all costs and charges which

may accrue in the prosecution of such proceeding; or

b. At the option of the petitioner, such undertaking may be in a sum

sufficient to cover the taxes, interests and penalties stated in such

determination plus the costs and charges which may accrue against it in

the prosecution of the proceeding, in which event the petitioner shall

not be required to pay such taxes, interest or penalties as a condition

precedent to the application.

(7) Where any taxes imposed hereunder shall have been erroneously,

illegally or unconstitutionally collected and application for the refund

therefor duly made to the proper fiscal officer or officers, and such

officer or officers shall have made a determination denying such refund,

such determination shall be reviewable by a proceeding under article

seventy-eight of the civil practice law and rules, provided, however,

that such proceeding is instituted within thirty days after the giving

of the notice of such denial, that a final determination of tax due was

not previously made, and that an undertaking is filed with the proper

fiscal officer or officers in such amount and with such sureties as a

justice of the supreme court shall approve to the effect that if such

proceeding be dismissed or the taxes confirmed, the petitioner will pay

all costs and charges which may accrue in the prosecution of such

proceeding.

(8) Except in the case of a willfully false or fraudulent return with

intent to evade the tax, no assessment of additional tax shall be made

after the expiration of more than three years from the date of the

filing of a return, provided, however, that where no return has been

filed as provided by law the tax may be assessed at any time.

(9) All revenues resulting from the imposition of the tax under the

local laws shall be paid into the treasury of the city of Rye and shall

be credited to and deposited in the general fund of the city. Such

revenues may be used for any lawful purpose.

(10) Each enactment of such a local law may provide for the imposition

of a hotel or motel tax for a period of time no longer than three years

from the date of its enactment. Nothing in this section shall prohibit

the adoption and enactment of local laws, pursuant to the provisions of

this section, upon the expiration of any other local law adopted

pursuant to this section.

(11) If any provision of this section or the application thereof to

any person or circumstance shall be held invalid, the remainder of this

section and the application of such provision to other persons or

circumstances shall not be affected thereby.

* NB Repealed September 1, 2027