New York City to Temporarily End Hotel Tax to Entice Visitors

Millennium Hilton New York Downtown Lobby

New York City will put its hotel room occupancy tax on pause for three months come June 1.

The action is intended to help resurrect the largely devastated tourism industry, which was one of the largest producers of income in the Big Apple prior to the start of the coronavirus pandemic.

The rate is currently set at $2 plus 5.785%.  For a typical hotel-room cost of $300 in the city, the tax would add $19.62 per night in addition to sales tax of $26.25 per night and the $1.50 per night New York State Hotel Unit Fee, a so-called Javits fee which covers costs relating to the creation of the Jacob K. Javits Convention Center.

The news was announced by the city’s mayor, Bill De Blasio, who predicted tourists would return “in droves.”

“By eliminating the hotel room occupancy tax for this summer, we’re accelerating our economic recovery, saving jobs and providing relief for one of our hardest-hit industries,” he said in announcing the move.

The leisure and hospitality sector lost an estimated 257,000 jobs from March through December last year.  The city hopes that, by eliminating the hotel room occupancy tax, hotels will lower room rates, thereby increasing demand.

(Photo: Accura Media Group)