With Buffalo’s budget talks underway, the hospitality and business sectors are ratcheting up opposition to Acting Mayor Chris Scanlon’s proposed 3% city bed tax. At least one hotel owner feels "hoodwinked" having their name and presence wrongly attached to the effort.
Political battle lines have been drawn when it comes to the bed tax proposal.
Supporters, such as Assembly Majority Leader Crystal Peoples-Stokes, say it's essential to help Buffalo solve its canyon-like, estimated $70 million budget gap. Without it and other measures, such as selling off the city-owned parking ramps, Buffalo residents could be facing a potential 30% property tax increase. A political nightmare Scanlon would rather avoid as he runs for a full term in office.
Critics say the bed tax will cripple Visit Buffalo Niagara and the hospitality industry’s efforts to land more large-scale meetings and conventions. It would increase all taxes on Buffalo-only hotel rooms from 13.75% to 16.75%, one of the highest in the country, according to HMS Lodging - a tourism industry consulting firm.
The average national bed tax rate is 6.34%, according to the same firm.
Raising the bed tax would be bad for business, warned Douglas Jemal, owner of three Buffalo hotels — the Hyatt Regency Buffalo, Mansion on Delaware and The Richardson.
"We're all but taxed in Western New York, as it already is in the Buffalo metropolitan area," said Jemal. "I think that [the region needs] less tax. Let's figure out a way to get more business, rather than more taxes."
Influential business and industry groups including Visit Buffalo Niagara and the Buffalo Niagara Partnership have already voiced their opposition to what they see as a tax upon a tax.
Joe Lettieri, owner of InnBuffalo off Elmwood — at the urging of Peoples-Stokes and Scanlon — hosted a pro-bed tax press conference earlier in the month. But in reality, Lettieri said he has more questions and concerns about the proposal.
"Yeah they [Scanlon and Peoples-Stokes] reached out and asked," said Lettieri. "It's kind of the old adage, no publicity is bad publicity. But I felt a little hoodwinked when they had me speak, and kind of gave the illusion that I was 100% behind this bed tax idea."
Peoples-Stokes believes it's a case of someone changing their mind.
"People have the ability to change their minds based on whom they're speaking with, and who tells them that maybe they should rethink what they said," the majority leader told BTPM NPR.
Scanlon provided a written statement, commending Peoples-Stokes and talking about support for the proposal.
“These initiatives are essential tools to help stabilize city finances, protect jobs, ensure vital services continue for residents, and most importantly, ease the burden on taxpayers,” wrote Scanlon.
Any bed tax would need approval from both the state Senate and Assembly. None of which is guaranteed at this point.
