Trust Issues & Vague Language Lead County Finance & Admin. Committee to Postpone Vote on Diverting Occupancy Tax Dollars

Following nearly an hour and a half conversation, the Cortland County Finance and Administration Committee once again postponed a resolution that would’ve diverted a portion of occupancy tax revenues from tourism and convention development to other “economic development.”

Tuesday morning’s special Finance & Administration Committee meeting drew in several organizations which utilize occupancy tax revenues distributed by the Cortland County Convention and Visitors Bureau (CVB) for advertising purposes to draw in visitors to the county. Representatives included organizations such as the CNY Living History Center, Cortland County Historical Society, Center for the Arts in Homer, and the 1890 House Museum. 

Chair of the Finance & Administration Committee Cathy Bischoff prior to going over her extensive research on what other counties within the state do with their occupancy tax revenue, allowed those in attendance to voice their opinions and/or concerns regarding the proposed resolution allocating a portion of the occupancy tax revenue.

The overall consensus by organizations in attendance is the occupancy tax revenues which are distributed by the CVB are their only source of funding towards advertising purposes to bring in out-of-towners to Cortland County. Lee Benson of the 1890 House Museum said the occupancy tax is a “self-funding tax.” The occupancy tax is paid for by visitors in the amount of a 5% tax on hotel and motel rooms with the exception of permanent residents who occupy a room for at least 30 consecutive days.

Another concern brought up was the lack of notice regarding the planned diversion of funds by the county. Some expressed their frustration that they were not aware of the planned “expansion” of the use of occupancy tax revenues for “economic development.” Adding the legislation by the committee also felt rushed.

Chair Bischoff spoke on how she conducted research on the 57 counties within the state and how they utilize their occupancy tax revenues and how they disperse it. She noted that four counties within the state do not actually have an occupancy tax. Bischoff also compared how Suffolk, Nassau, and Onondaga Counties use their occupancy tax revenues for several purposes. 

Those in attendance argued it’s difficult to compare Cortland County against Suffolk, Nassau, and Onondaga due to those counties’ major populations and increased revenues. Bischoff was also asked why she didn’t provide information on neighboring counties (Tompkins & Madison), who the organizations in attendance, say compete for the same tourists.

The Finance and Committee members agreed that input should’ve been taken from the organizations that benefit from occupancy tax revenues and added more discussion is needed prior to their vote and sending to the state for approval. The motion was then made to postpone the resolution to divert funds until more specifics and a dialog may be done with the organizations present of possibly creating a draft law with specific language on the diversion of the funds. The vote to postpone was unanimous.

Following postponement of the diversion of occupancy tax revenues, the committee then went over the budget for the CVB. The budget, the committee informed Executive Director Michelle Enright for next year would remain the same. A question was raised on why the budget would remain the same however when revenue went up, along with $140,000 that was taken back from the Regional Sports Council, who is receiving assistance by the CVB. Law specifically states the county may only hold 10% of the occupancy tax revenues for administrative purposes with the remaining 90% going to the CVB.