The manager order supplies reduction by way of a tax pause. On Could 19, 2021, Mayor Invoice de Blasio signed an government order to offer short-term tax reduction for the resort trade because the trade continues to recuperate from the lack of tourism because of the COVID-19 pandemic.
The manager order eliminates the 5.875 p.c resort room occupancy tax charges for 3 months, from June 1, 2021 by way of August 31, 2021. The affect of the pandemic on the resort trade could possibly be seen within the drop in income from the resort room occupancy tax, which was down 89 p.c in comparison with Fiscal 12 months 2020. The objective of the chief order is to convey extra enterprise to inns, who can decrease the price of their rooms because of the lack of an occupancy tax, thus growing demand, bringing extra vacationers in and serving to make up for the losses of the previous yr.
Mayor de Blasio said, “As our COVID charges proceed to plummet and we proceed to drive a restoration for all of us, vacationers will likely be coming again to New York Metropolis in droves. We’re prepared for them. By eliminating the resort room occupancy tax for this summer time, we’re accelerating our financial restoration, saving jobs and offering reduction for considered one of our hardest-hit industries.
Sherif Soliman, Division of Finance Commissioner, said, “It’s plain that New York Metropolis’s resort trade, which welcomed tens of tens of millions of vacationers and enterprise vacationers earlier than the pandemic, suffered tremendously as journey halted. Because the Metropolis’s Restoration for All continues to realize momentum, this focused and short-term tax discount will present wind on the backs of the resort trade, serving to put extra New Yorkers to work as they roll out the purple carpet for all who search lodging, whether or not for leisure or enterprise.”
By: Veronica Rose (Veronica is the CityLaw fellow and New York Regulation Faculty graduate, Class of 2018.)