Mid Hudson Times , Wednesday , March 8 , 2017 3
Hotel owner urges town to ‘ be careful ’ over new tax
By LAUREN BERG
The town of Newburgh ’ s February 27th meeting included an extensive discussion concerning the hotel / motel tax for which the town is seeking state approval . If approved , the tax would charge between one to five percent extra tax on all hotels and motels within the town district . The town has sought this tax unsuccessfully in the past , but since the town of Woodbury received approval from Gov . Andrew Cuomo this past December , the town believes that there is a very good chance Newburgh could receive approval now as well .
However , Martin Milano , owner of the new Hampton Inn & Suites opening soon in Newburgh , has concerns over this extra tax . Milano has been in the hotel business for 25 years , and owns multiple hotels in both Woodbury and Newburgh . Milano is well versed in the occupancy tax or “ bed tax ,” which was first developed in 1992 . Newburgh ’ s hotel taxes are currently at 13.125 %. Five percent of the current occupancy tax goes directly to Orange County , which has yet to share that revenue with the town , and the remaining 8.125 % is sales tax . This combined price is higher compared to neighboring counties- Ulster County has a 10 % tax , Rockland is at 11.38 %, and Dutchess 12.13 %. If Woodbury , which was just approved for the tax on hotel stays , decides to go with the full 5 % increase , its occupancy tax will come to a grand total of 18 %. Milano calls Woodbury ’ s 18 % tax price “ absurd .”
Milano ’ s concern over the higher tax is twofold . First , he is worried that the higher hotel prices will drive business
The new Hampton Inn & Suites is scheduled to open in three weeks .
away to surrounding areas , hurting not only the local hotel businesses but also restaurants and gas stations . He argued that especially in the winter hotels and motels rely on travelers passing through . If these travelers find the prices in Newburgh too high , they may decide to go elsewhere . Especially when it comes to bus or group tours booking a place to stay , Milano asserted that such customers are well aware of the tax differences between towns and counties and will plan accordingly .
Secondly , while Milano acknowledged hotel / motel owners are doing much better since the recession in 2008 , he claimed his Central Valley hotel ’ s income is currently down 9-10 % this year . Milano attributed this decline to the strong U . S . dollar , which discourages foreign tourists from visiting and causes Americans to travel oversees to spend their money . He also blamed the increased presence of local Air B & B businesses , which do not fall under the current occupancy tax , and therefore can rent out rooms or entire houses at prices hotels cannot match . “ If I ’ m paying taxes on this , these people should [ too ]. It ’ s impacting the hotel industry quite a bit ,” said Milano . He urged the town to “ be careful ” in moving forward on this tax .
The Town of Newburgh has yet to receive word if they have been approved for the hotel / motel tax . The town board did state that if approved they would hold a public hearing , and the town board would have the power to choose what percentage they will charge . The board may decide that choosing a 1-2 % tax increase will generate sufficient income for the town , considering the large number of hotels and motels situated within the Town of Newburgh .
Overlook Farms owners seek zone change
By LAUREN BERG
Jim and Nina Lyons , owners of Overlook Farms on 9W , applied at the Town of Newburgh meeting February 27 to change their 30-acre property from an AR ( agricultural residential ) back to an R3 ( residential ) zoning . The property was originally an R3 zoning when it was purchased back in 1974 , but it was changed to its current standing as an AR in 1994 . At the suggestion of the board , the Lyons will host an informational meeting with the neighbors about this proposed change in the upcoming weeks .
The Lyons explained that as they are nearing retirement age , they are evaluating their different properties , and potentially would seek to sell Overlook Farms in the next four to five years .
Also discussed at the town board meeting was the New York State Department of Environmental Conservation ’ s proposal to construct water main extensions to the houses on Coronas Lane and Leary Lane , whose wells were found to be contaminated with perfluorinated compounds ( PFOS ). PFOS has been a recent discussion among Newburgh town and city residents , when it was found that Washington Lake ’ s water supply was contaminated by the nearby Air National Guard Base at Stewart Airport , which used firefighting foam containing PFOS . Now , this contamination has also been found north of Washington Lake in the wells of the town residents living on private roads Coronas Lane and Leary Lane .
While one option for the Department of Environmental Conservation ( DEC ) is to install water filters into each of these affected homes , which would have to be maintained over the years , the DEC has alternatively proposed to the town to extend its public water main to each of these houses . These extensions would be approximately 400 feet long at Coronas Lane and 800 feet long at Leary Lane . “ These extensions are to ensure the residents have clean water and are free from contamination ” said town engineer James Osborne . The DEC has suggested it would hire a contractor to do the work , and the town has yet to determine whether the DEC would cover most of the project ’ s expenses .
The town has decided to send supervisor Gil Piaquadio , town attorney Mark Taylor , and Osborne to meet with the DEC and get the specifics on the proposed plan , before making any further decisions .