GENERAL INSTRUCTIONS FOR THE OCCUPANCY TAX OF ERIE COUNTY, NEW YORK
1. SCOPE OF THESE INSTRUCTIONS
These instructions summarize the responsibilities of operators of hotels, motels, places of temporary lodging and short-term rentals (STRs) for (1) registering as hotel/motel/short term rental operators, (2) collecting the Erie County Hotel Occupancy Tax, and for (3) filing quarterly tax returns and making payment of the tax due each quarter.
2. WHO IS REQUIRED TO COLLECT THE TAX?
Collection of the tax is required by any person (individual), partnership, corporation, society, association, joint stock company, estate, receiver, trustee, assignee, referee, fiduciary, or representative who is an operator of a hotel as defined here:
Operator of a hotel – any person who operates:
- a hotel
- an apartment hotel
- a motel
- a boarding house or club
- a short-term rental or vacation rental
- other buildings regularly used for the lodging of guests
3. CERTIFICATE OF REGISTRATION
Every operator of a hotel (as defined above) must file a Certificate of Registration with the Erie County Comptroller’s Office within three (3) days after the opening of the business or their acquisition of the hotel (if the hotel is consistently operating). STR registrations must be renewed biannually.
The Certificate of Registration must be filed with the Erie County Comptroller via US Mail at Erie County Comptroller’s Office, 95 Franklin Street, Room 1100, Buffalo, NY 14202.
Short-Term Rentals Registration
4. CERTIFICATE OF AUTHORITY
Upon receipt of a properly completed Certificate of Registration, the Erie County Comptroller will issue to the operator a validated Certificate of Authority. This empowers the operator to collect the Erie County Hotel Occupancy Tax imposed under Erie County Local Law No. 01-2024.
The Certificate must be prominently displayed in a public location at the place of business to which it applies.
Certificates of Authority are “non-assignable and non-transferrable and shall be surrendered immediately to the Comptroller upon the cessation of business . . . or upon the sale, lease, assignment or other transfer to another host or operator.” If the owner or operator of a hospitality business closes, sells, leases, assigns, or otherwise transfers the business without returning the Certificate of Authority, that individual and/or entity will now be subject to a fine of $10,000.
If the business is being sold, leased, assigned, licensed, or otherwise transferred from one owner and/or operator to another, § 17(a) of the law states that the seller/transferor has a responsibility to “notify the Comptroller by registered mail of the proposed sale and of the price, terms and conditions thereof” prior to the new owner and/or operator taking possession of the business. If the seller/transferor fails to provide such notice to the Comptroller prior to the transfer date, that individual and/or entity will now be subject to a fine of $10,000. If the seller/transferor owes previously incurred occupancy tax to Erie County, those amounts must be paid no later than the closing date.
5. WHAT ITEMS ARE SUBJECT TO TAX?
All hotel, motel, and short-term rentals to persons who are in residence for periods of less than thirty (30) consecutive days.
6. EXEMPT ORGANIZATIONS
- Except as otherwise provided in this section, any use or occupancy by any of the following shall not be subject to the tax imposed by this Local Law:
- The State of New York, or any of its agencies, instrumentalities, public corporations (including a public corporation created pursuant to agreement or compact with another state or Canada), improvement districts, or political sub-divisions of the State.
- The United States of America, or any of its agencies or instrumentalities, insofar as it is immune from taxation.
- Any corporation, association, 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 sub-division 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 sub-division.
- 2. Where any organization carries on its activities in furtherance of the purpose for which it was organized, in premises in which, as part of said activities, it operates a hotel, occupancy of rooms in the premises and rents therefrom received by such corporation shall not be subject to tax hereunder.
7. FORM USED FOR EXEMPT TRANSACTIONS
The operator is required to collect the tax on a room rental unless a properly completed Exemption Certificate (New York State Department of Taxation and Finance Forms ST-119.1, ST-119.5 and ST-129) is presented at the time of stay by a eligible guest. Use of the Exemption Certificate is limited to the organizations described in Section 6 above.
8. RATE OF TAX
- The rate of three percent(3%) is to be charged and paid upon the rent for every occupancy of a short-term rental or hotel with 30 or less rooms located in Erie County.
- The rate of five percent 5%) is to be charged and paid upon the rent for every occupancy of a room in a hotel with more than 30 rooms located in Erie County.
These taxes shall not be charged to permanent residents of the establishment or those staying 30 or more consecutive days.
9. LIABILITY FOR TAX
Every operator of a short-term rental and/or hotel is required to collect the Erie County Hotel Occupancy Tax personally liable for the tax imposed, collected, or required to be collected. The operator has the same right to collect the tax from their customer as if the tax were part of the room rent charged.
A rental shall be deemed a taxable rental unless the operator receives from their customer a properly completed Exemption Certificate as described in Section 7 of these instructions.
10. FILING RETURNS AND PAYMENT OF TAX
Any operator or other person engaged in activities subject to the Erie County Hotel Occupancy Tax is required to file a return every quarter, whether or not they have collected tax during the period for which they are filing. The return must be accompanied by a remittance covering any Erie County Hotel Occupancy Tax which may be due. Forms may be submitted online.
Short Term Rental forms may be submitted at online.
Hotel/Motel Operators only can download the 3% or 5% tax returns on the forms tab of the Comptroller's website for mailing purposes.
STR’s must file returns online but can mail payments by US Mail if they so desire. At the time of filing, every operator of a hotel/STR who is required to file a return must pay the Hotel Occupancy Tax due in its entirety. The remittance in payment of the tax should be made payable to “Erie County Comptroller”.
Returns are due as follows:
| Quarterly Period | Due Date |
|---|---|
| December 1st–February 28th | March 20th |
| March 1st – May 31st | June 20th |
| June 1st – August 31st | September 20th |
| September 1st – November 30th | December 20th |
11. LATE FILING CHARGES
If a return is filed or payment is made after the due date, a late filing charge is due which consists of a penalty plus interest. Penalty amount to five percent (5%) of the Hotel Occupancy Tax due for the first month of delay. In addition to the penalty, Interest amounts to one percent (1%) of the Hotel Occupancy Tax due per month for each month of delay after the due date, excepting the first month of delay after the due date.
12. TAX WARRANTS
Operators who fail to remit the Hotel Occupancy Tax to the County shall be subject to a tax warrant filed against themselves and the property.
QUESTIONS
Anyone with any questions concerning the law, returns, payments, and obligations of operators may contact the Comptroller’s Office hotel tax unit at ErieCountyBedTax@erie.gov.