Suffolk sets public hearing on hotel-motel tax hike

Suffolk County officials are moving forward with a plan to raise a tax on hotel stays and reallocate a portion of it to fund projects surrounding a proposed Ronkonkoma convention center.

Under the proposal, the current 3% hotel-motel tax on the per diem rate for nightly stays within Suffolk County would rise to 5.5%. The tax is levied in addition to the county’s 8.625% sales tax.

The Suffolk County Legislature on Wednesday set a public hearing at the Maxine Postal Auditorium in Riverhead on March 7 at 2 p.m.

Chief Deputy Suffolk County Executive Lisa Black said the hotel-motel tax, first authorized in 1991, raises an estimated $11 million per year for tourism promotion and funding for cultural sites. The increase could net an additional $9 million, she said. The tax would be paid by all guests, regardless of where they live.

“It’s an option that doesn’t burden our residents and enhances the resources offered to them and our visitors alike,” she told Newsday.

Many counties throughout the state impose a hotel-motel tax, including Nassau where the rate is 3%.

The increase would partly support a new Suffolk County Infrastructure Fund which could be used for “the planning, design, and construction of a convention center and surrounding infrastructure," according to the bill under consideration.

Long Island’s first convention center has been proposed as part of a $2.8 billion redevelopment project in Ronkonkoma known as Midway Crossing.

“We expect to put that money to good use,” said Legis. Kevin McCaffrey (R-Lindenhurst), presiding officer of the legislature. “We're going to take a portion of that money and apply it to infrastructure for our planned convention center in the Midway Crossing project.”

Representatives from the HIA-LI business group, the Building and Construction Trades Council of Nassau and Suffolk Counties and the East End Tourism Alliance all spoke in favor of the increase during a public hearing before the legislature in May.

But Legis. Anthony Piccirillo (R-Holtsville), whose district borders the proposed complex, said he would not support the increase. He has raised questions over the convention center's viability and the “urbanization” of surrounding areas. Some of his constituents have expressed concern over the project's impact on roads and the burden it could place on emergency responders.

“I’m not voting to raise taxes, especially with an economy that’s on the brink of a recession,” he told Newsday. “They're saying, 'Well, we're not raising taxes on county residents,' but it's still a burden for businesses.”

The proposal would also shift the formula for how money is given to cultural centers like the Vanderbilt Museum in Centreport and the Walt Whitman Birthplace Museum in South Huntington -- from a percentage of the fund to a set dollar amount. The new formula lays out how $17 million in revenue would be spent; it includes $3.25 million for Suffolk County parks and $2.25 million for cultural programs and activities.

It also increases the amount given to the local tourism promotion agency, Discover Long Island, from $2 million to $6 million, a change questioned by some legislators earlier this year.

All of the remaining money would be deposited into the new infrastructure fund.

The change requires state authorization, which the state Legislature and Gov. Kathy Hochul granted last year. If adopted by the legislature and signed into law, the tax increase would go into effect June 1.

By Vera Chinese

vera.chinese@newsday.com@VeraChinese

Vera Chinese covers Suffolk County government and politics.