Suffolk could reap wide benefits from hotel tax hike

Suffolk County's hotel-motel tax has always been among the nation's lowest. It's remained at 3% since 2009, when it jumped from .75%. Now, Suffolk is considering an increase to 5.5%.

Gov. Kathy Hochul signed a law last year approving the county's request for a hike. All that's needed is the county legislature's approval, which could come next month.

Even with the increase, Suffolk's hotel tax would still be lower than that in most cities and counties in New York State; Niagara and Albany are both at 6% and Syracuse is 7%. Westchester's hotel tax remains 3%, but cities within the county charge an additional fee on top of it. New York City charges $1.50 per day on top of state and city taxes. Also, Suffolk's tax would remain significantly below many communities nationwide — like Norfolk, Virginia, at 9% and Baltimore, Maryland, at 9.5%.

The hike could boost total hotel-motel tax collections to more than $20 million annually. The state legislation details how the money would be distributed, with some to Long Island MacArthur Airport and another pot to an East End tourism agency. Significant funds also would be earmarked for cultural programs and other tourism efforts, split equally between western and eastern Suffolk. Some money would go to the county, and some to a nonprofit tourism agency, currently designated as Discover Long Island.

The legislation also establishes a new county infrastructure fund to plan and build a convention center proposed for the Ronkonkoma Hub as part of the Midway Crossing project. Anything left after required allocations would go into that fund. Convention centers are traditionally built with public dollars and advocates hope Suffolk's contribution will lead the state to follow suit.

But the convention center, like the broader Midway project, remains uncertain. The initial feasibility study is more than five years old. It should be updated, and a more complete economic analysis conducted. Suffolk officials, along with Midway's developers and the local development corporation being established, must show that the convention center post-COVID-19 will bring a return on promises made. A convention center could be game-changing for Suffolk, luring more travelers and newcomers. But if it melts away, the infrastructure funds must be reallocated to other county needs.

The proposed hotel-motel tax increase would help Suffolk in broader ways — by promoting tourism; improving key landmarks, museums and other favorite spots; and providing funds for new cultural programs. Suffolk must enforce its collection of the tax for all operations covered by the legislation, including traditional hotels and motels as well as short-term rentals, Airbnbs, and any "facility providing lodging on an overnight basis."

Suffolk has always attracted tourism, especially on the East End. There's potential for much more. A relatively reasonable hotel tax increase would benefit the entire county.