Auburn Takes Key Steps Toward Implementing Hotel Occupancy Tax in 2025
The City of Auburn, New York, is officially moving ahead with a plan to implement a hotel occupancy tax, also known as a bed tax, which could generate substantial new revenue for the city. The Auburn City Council voted on Thursday, June 6, 2025, to begin the legislative process that would add a tax to overnight stays at hotels, motels, and short-term rental properties like Airbnb.
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What Is the Hotel Occupancy Tax and Why Is Auburn Introducing It?
A hotel occupancy tax is a fee added to the cost of lodging for travelers, typically a percentage of the room rate. Under the proposed law, Auburn would be permitted to charge up to 5 percent on every night’s stay within the city.
This tax could apply to:
- Traditional hotels and motels
- Bed and breakfasts
- Vacation rentals including Airbnb and Vrbo
The tax is aimed at boosting city revenue without directly affecting local residents. City Clerk Chuck Mason has previously estimated that a 5 percent bed tax could bring in approximately $500,000 per year, providing a critical funding source for city infrastructure, tourism promotion, or public services.
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Timeline for Implementation and Public Input
The process to formally enact the tax begins with several important steps:
- June 12, 2025: The first reading of the proposed local law will take place during the City Council meeting.
- June 26, 2025 at 5:00 PM: A public hearing will be held, giving residents an opportunity to share their views and concerns before the final decision is made.
- Following the hearing, the City Council will vote on whether to officially adopt the law.
Previous Efforts Blocked by Political Roadblocks
Auburn’s push to implement a bed tax dates back to 2023, when the city first approached State Senator Rachel May and Assemblyman John Lemondes to introduce home rule request bills, which are required for local tax changes under New York State law.
Senator May was quick to support Auburn’s request and introduced the necessary legislation in the State Senate, but Assemblyman Lemondes declined to introduce the companion bill in the State Assembly, effectively halting the city’s plans and drawing criticism from local leaders, including Mayor Jimmy Giannettino.
Despite the setback, Auburn did not abandon the effort. The city made a renewed request in January 2025, but thanks to Senator May’s continued support, she was able to include authorization for the hotel tax in the state budget, bypassing the traditional home rule process entirely.
How Auburn’s Hotel Tax Compares to Other Cities
If approved, Auburn will join a growing list of municipalities across New York State that have implemented hotel occupancy taxes to capitalize on local tourism and business travel. A 5 percent tax is considered standard or moderate and is often seen as a way to ensure that visitors help support local infrastructure they use during their stay.
For cities with cultural attractions, event venues, and tourism potential, a bed tax can offer sustainable funding for tourism initiatives without raising taxes on residents.
What’s Next for Travelers and Business Owners?
If the law is passed, hotel operators and short-term rental hosts in Auburn will be required to collect the tax and remit it to the city. This means travelers should expect slightly higher nightly rates, but the additional funds could help improve public services, event support, and city beautification efforts.
Residents and local businesses are encouraged to attend the public hearing on June 26 to learn more about the proposal and share their thoughts.
As Auburn looks toward a more financially resilient future, the hotel occupancy tax could become a cornerstone of sustainable city funding—with travelers helping to foot the bill.