Auburn is again pursuing a tax on hotel stays and short-term rentals, and we believe it could yield positive gains as long as safeguards are put in place to avoid harming the local tourism industry.
City Council began looking into the tax in earnest in 2023. Then-Councilor Jimmy Giannettino argued that an occupancy tax would help offset the costs of an increasing number of police and fire department responses to area hotels, as well as wear and tear on city infrastructure attributed to an increase in visitation.
As mayor, Giannettino has continued to press the issue, expressing disappointment last spring after Assemblyman John Lemondes opposed the plan before it could get as far as the governor's office for approval. Despite that setback, the city is hoping to gain the support of Lemondes and state Sen. Rachel May in a second attempt to get state approval for the tax.
After a failed attempt this year, the Auburn City Council will renew its push for a hotel and short-term rental tax in 2025.Â
The city's hope is to add a tax of up to 5% on hotels and short-term rentals to generate about $500,000 a year to support emergency services and infrastructure projects. That fee would be in addition to an existing 5% tax imposed by Cayuga County, with that money supporting county tourism initiatives.
Opponents of the tax are fearful that an increased cost of overnight stays could cause tourists to spend less at restaurants and shops, or even discourage families from visiting Auburn altogether.
We previously said the city needs to remain mindful that increasing the cost of visiting Auburn could harm the area's growing hospitality industry. We continue to believe that mechanisms must be put in place to allow some flexibility as to where the tax money should go in the event it can be shown down the road that the fee is having a negative impact on tourism.
But with hotel taxes becoming more and more commonplace, those worries may be misplaced — and Auburn could stand to gain from resuming its effort to add one.
Ë®¹ûÅÉAV Editorial Board consists of Executive Editor David Wilcox and Managing Editor Mike Dowd.